Arm Holdings Exceeds Q1 Earnings Forecasts Despite Share Price Decline
Arm Holdings (NASDAQ:ARM) reported first-quarter earnings per share of $0.45, surpassing the analyst consensus estimate of $0.37. Revenue reached $1.29 billion, exceeding expectations of $1.27 billion. However, despite these positive results and an upbeat outlook for Q2 with projected EPS of $0.47 (vs. expected $0.43) and revenue guidance of $1.38 billion (vs. expected $1.34 billion), Arm's shares fell over 6% in premarket trading after dropping nearly 8% the previous day. The company attributed its strong performance to gains in artificial intelligence and data center processors, partially offset by ongoing weakness in the smartphone market. Bank of America noted long-term opportunities for Arm in agentic CPUs and IP business growth but warned that near-term supply constraints limit upside potential. The bank also lowered its price target on Arm from $460 to $260 due to a recent re-rating among peers.
Tickers: $ARM
Topics: AI Growth Earnings Revenue Stock Performance