Zinger Key Points
- Arm shares fell over 4% after issuing fiscal 2026 guidance that missed Wall Street expectations.
- The company beat Q4 earnings and revenue estimates but disappointed with a weaker EPS and revenue outlook.
- Discover the top trade setups and strategies beating the S&P this year —live this Wednesday at 6 PM ET. Reserve your free spot now.
Arm Holdings Plc ARM shares are trading lower Thursday as soft guidance offset the company’s better-than-expected Q4 earnings.
What To Know: The company posted fourth-quarter earnings of 55 cents per share, beating the consensus estimate of 52 cents. Revenue came in at $1.24 billion, slightly above the $1.23 billion estimate and up from $928 million a year ago. The company highlighted record licensing and royalty revenue, with royalties alone exceeding $600 million for the quarter.
Despite a strong fourth-quarter, investor sentiment turned negative following the company’s forward guidance. Arm projected fiscal 2026 earnings per share between $1.56 and $1.64, significantly below the $2.03 analysts expected. Full-year revenue guidance was set between $3.94 billion and $4.04 billion, missing the consensus estimate of $4.91 billion.
ARM Price Action: Arm holdings shares were down 4.61% at $118.47 at the time of writing, according to Benzinga Pro.
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