Arm Stock Falls Despite Strong Results as Outlook Misses the Mark

Arm Holdings (ARM) delivered an outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.

The chip designer and Nvidia (NVDA) partner said it anticipates fiscal first-quarter adjusted earnings per share of 30 cents to 38 cents, short of the 41 cents called for by Wall Street, according to Visible Alpha. Arm’s revenue forecast, of $1 billion to $1.1 billion, was also lower than the analyst consensus at the midpoint of its range.

Arm shares fell some 9% in after-hours trading. The stock is up less than 1% so far in 2025 through Wednesday’s close.

In its fiscal fourth quarter, Arm posted record revenue of $1.24 billion, up 34% year-over-year and above the analyst consensus from Visible Alpha. Adjusted net income was $584 million, or 55 cents per share, compared to $376 million, or 36 cents per share, a year earlier, surpassing Wall Street’s estimates.

Arm’s royalty revenue improved 18% to a record $607 million, while its license and other revenue gained 53% to $634 million.