Arm Holdings Plc (NASDAQ:ARM) reported better-than-expected third-quarter financial results for fiscal year 2025 after the market close on Wednesday.

Arm reported third-quarter revenue of $983 million, beating analyst estimates of $946.73 million. The chip designer reported adjusted earnings of 39 cents per share, beating analyst estimates of 34 cents per share, according to Benzinga Pro.

"Arm delivered record third-quarter revenue driven by continued strong adoption of Armv9 and CSS compute platforms," said Rene Haas, CEO of Arm Holdings. "With our high-performance, energy-efficient, flexible technology, Arm is a key enabler in advancing AI innovation and transforming the user experience, from the edge to the cloud."

Arm said it expects fourth-quarter revenue of $1.175 billion to $1.275 billion. The company anticipates fourth-quarter adjusted earnings of 48 cents to 56 cents per share. Arm also narrowed its full-year guidance. The company now expects full-year revenue of $3.94 billion to $4.04 billion and full-year adjusted earnings of $1.56 to $1.64 per share.

Arm shares gained 6.8% to close at $173.26 on Wednesday.

These analysts made changes to their price targets on Arm following earnings announcement.

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