Arm Holdings Stock Plunges After Q4 Results: Here's Why

Arm Holdings Plc ARM released its fourth-quarter results after Wednesday's closing bell. Here's a look at the details from the report. 

The Details: Arm Holdings reported quarterly earnings of 55 cents per share, which beat the analyst consensus estimate of 52 cents. Quarterly revenue came in at $1.24 billion, which beat the consensus estimate of $1.23 billion and is an increase over revenue of $928 million from the same period last year.

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The company reported it achieved record licensing revenue and delivered record royalty revenue exceeding $600 million in the fourth quarter.

"Arm delivered record-breaking results for both the fourth quarter and the full fiscal year ending 2025. We surpassed $1 billion in revenue for the first time in Q4, driven by increased deployment of our CSS platforms across AI data center, cloud compute and mobile. As AI growth from the cloud to the edge creates demand for more energy-efficient compute, Arm will enable AI everywhere,” said Rene Haas, CEO of Arm Holdings.

Outlook: Arm sees fiscal 2026 EPS in a range of $1.56 to $1.64, versus the $2.03 estimate, and revenue in a range of $3.94 billion to $4.04 billion, versus the $4.91 billion analyst estimate.

ARM Price Action: According to data from Benzinga Pro, Arm stock was down 8.98% at $113.04 after hours on Wednesday.  

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