Arm shares fall 5.28% after revenue outlook barely beats estimates
In short
Arm Holdings said it expects third-quarter revenue of about $1.54 billion and adjusted earnings of 56 cents per share. That revenue guide was only a little above the $1.53 billion analyst estimate, and the stock fell 5.28% on Wednesday.
The move matters because investors were expecting stronger signs from Arm’s AI data centre business.
What the reporting says
Arm Holdings shares fell 5.28% in Wednesday’s regular session after the company forecast third-quarter revenue of about $1.54 billion and adjusted earnings of 56 cents per share. The revenue outlook only slightly beat analysts’ average estimate of $1.53 billion, even as expectations for its AI data centre business were growing.
Why it matters
Arm Holdings guided third-quarter revenue to about $1.54 billion and adjusted earnings to 56 cents per share, slightly above the $1.53 billion revenue estimate. Despite that, its shares fell 5.28% in Wednesday’s regular session. The market reaction suggests investors wanted a stronger beat.