Arm Holdings reported better-than-expected earnings for its fiscal fourth quarter but issued weaker-than-anticipated guidance, causing its stock to decline in after-hours trading. For the quarter ended March 31, Arm posted adjusted earnings of 55 cents per share on sales of $1.24 billion, exceeding analysts’ forecasts. However, the company projected adjusted earnings of 34 cents per share on revenue of $1.05 billion for the current quarter, below Wall Street estimates. Arm attributes its revenue growth to strong licensing and royalty revenue, driven by demand across various sectors including data centers, automotive, and smartphones. Despite these positive trends, investor concerns over the guidance led to a more than 9% drop in Arm’s stock price.
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