Arm Holdings 3Q Profit Falls Despite Revenue Growth
By Kelly Cloonan
Arm Holdings logged lower profit in its latest quarter despite a rise in sales due to increased demand for its chips in artificial intelligence data centers.
The British semiconductor company on Wednesday posted a profit of $223 million, or 21 cents a share, compared with $252 million, or 24 cents a share, a year earlier.
Adjusted earnings per share were 43 cents, ahead of estimates of 41 cents a share according to analysts polled by FactSet.
Revenue climbed 26% to $1.24 billion, above analyst estimates of $1.23 billion.
Royalty revenue increased 27% to $737 million, driven by higher royalty rates per chip and increased use of Arm's chips in data centers.
"Demand for AI computing on our platform continues to accelerate," Chief Executive Rene Haas said.
License and other revenue gained 25% to $505 million, due to normal fluctuations in the timing and size of several large license agreements and contributions from the company's backlog, it said.
For the fiscal fourth quarter, the company guided for adjusted earnings of 58 cents, plus or minus 4 cents, and revenue of about $1.47 billion, plus or minus $50 million.
Analysts project revenue of $1.44 billion.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
February 04, 2026 16:44 ET (21:44 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
5 Stocks to Sell for Tax-Loss Harvesting
The Smartest Moves for Bond Investors Today, and What to Do When You Have Too Many Investments
33 Undervalued Stocks to Buy Before the Market Shifts Again
Ask the Analyst: What Is the Best Source for Low-Risk Tax-Free Income?
United States