Arm Shares Slide over 13% as Guidance Disappoints Despite Meeting Q1 Expectations

Arm Holdings Sees Stock Decline After Soft Outlook

Key Points:

• Arm Holdings (NASDAQ:ARM) shares fell over 12% on Wednesday following a weaker-than-expected outlook, despite meeting first-quarter results.
• For the quarter ending June 30, 2025, Arm reported adjusted earnings per share of $0.35 on revenue of $1.05 billion, matching consensus estimates.
• Royalty revenue rose 25% year-over-year to $585 million, driven by the adoption of the Armv9 architecture and increased shipments of Compute Subsystems for data centers, automotive, and mobile applications.
• The company anticipates fiscal second-quarter adjusted EPS between $0.29 and $0.37, falling short of the consensus estimate of $0.35. Projected revenue ranges from $1.01 billion to $1.11 billion, slightly below Wall Street’s estimate of $1.07 billion.

  Arm’s outlook has raised concerns among investors, reflecting challenges despite solid quarterly performance.