Chipmaker Arm has posted a major increase in revenue and earnings per share, but issued lower-than-expected guidance.
Revenue last quarter was US$1.24 billion, rising 34% year-over-year and surpassing LSEG estimates of $1.23 billion. Non-GAAP diluted earnings per share were $0.55, up from $0.36 one year ago.
“Arm achieved record-breaking results in Q4, delivering record revenue and crossing the $1 billion revenue milestone for the first time in our history. We achieved record licensing revenue and, in a clear signal that we are increasing royalty per chip, delivered record royalty revenue exceeding $600 million,” Arm CEO Rene Haas and CFO Jason Child wrote in a letter to shareholders.
“In addition, full year revenue for FYE25 exceeded $4 billion and royalty revenue exceeded $2 billion for the first time.”
Royalty revenue was up 18% year-over-year to US$607 million, which the company credited to Armv9 processor adoption.
Arm has now shipped more than 310 billion Arm-based chips since its founding in 1990, the company said.
NVIDIA and MediaTek are reportedly expected to unveil a jointly-produced laptop chip later this year, which will use Arm’s central processing unit cores and the Windows on Arm operating system.
Arm's guidance for the next quarter forecasts revenue of US$1-1.1 billion, with the midpoint below LSEG analysts' $1.1 billion forecast. Earnings per share will be $0.30-0.38, it estimates.
Arm’s (NASDASQ: ARM) share price closed at US$124.19, up from its previous close of $122.44. However, the stock fell by 11.2% in after-hours trading, due to the company’s missed guidance expectations. Arm’s market capitalisation is $130.9 billion.
