Arm Holdings designs power nearly every smartphone in the world, generating $200 billion in revenue annually for chipmakers that sell them.
Arm Holdings reported mixed financial results for fiscal year 2025 with revenue between $3.8 billion and $4.1 billion and profit between $1.45 and $1.65 per share.
Licensing business grew significantly due to four major licensing agreements during the quarter.
Q4 of FY2024 saw a 47% year-over-year increase in sales, reaching $928 million.
Royalties segment also saw a substantial increase as new Arm design commands a higher rate and now accounts for 20% of the segment.
Arm Holdings, a leading chip designer, reported mixed financial results for the fiscal year 2025. The company projected revenue between $3.8 billion and $4.1 billion and profit between $1.45 and $1.65 per share.
Despite these figures surpassing analysts' expectations in the previous quarter, investors were disappointed with the annual forecast, causing Arm Holdings' shares to slip.
Arm Holdings generates revenue from licensing fees for its semiconductor designs and royalties for each chip sold using its technology. In Q4 of FY2024, the company reported a 47% year-over-year increase in sales, reaching $928 million.
The licensing business grew significantly due to four major licensing agreements during the quarter. The royalties segment also saw a substantial increase as a new Arm design commands a higher rate and now accounts for 20% of the segment.
Arm's designs power nearly every smartphone in the world, generating $200 billion in revenue annually for chipmakers that sell them. However, its revenue and profit have not benefited from artificial intelligence (AI) to the same extent as other companies like Nvidia.
Despite these strong results, investors were concerned about Arm Holdings' annual forecast and the uncertainty surrounding AI spending. Shares of Arm Holdings fell about 7% in extended trading after the report.
