Arm reports Q2 earnings with royalty miss and modest Q3 outlook, shares slide
Arm Holdings posted fiscal second‑quarter revenue of $1.44 billion and adjusted earnings of $0.52 per share, beating Wall Street estimates. Royalty revenue came in at $670 million, well under the $720.8 million consensus, while licensing revenue was strong. The company forecast third‑quarter revenue of about $1.54 billion, only slightly above analysts’ expectations, and cited an unresolved Qualcomm royalty dispute. The mixed results sent the ADR down 3.8% after hours and 4.18% in pre‑market trading.
Why it matters
The royalty shortfall and limited upside in the Q3 guidance may pressure Arm’s high valuation, as investors view royalties as a key gauge of chip demand. The share decline reflects heightened uncertainty around future royalty terms and the company’s growth trajectory.
Key facts
- 1Arm reported total Q2 revenue of $1.44 billion. investing.com
- 2Adjusted earnings per share for Q2 were $0.52. investing.com
- 3Q2 royalty revenue was $670 million, below the $720.8 million expected by analysts. investing.com
- 4Arm projected Q3 revenue of $1.54 billion. investing.com
- 5GAAP earnings per share for Q2 were $0.12. finance.yahoo.com
- 6The stock fell 3.8% in after‑hours trading. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.