What was Arm Holdings' profit in the latest quarter?

Arm Holdings reported a profit of $223 million in its latest quarter.

What drove the increase in Arm Holdings' revenue?

Revenue increased due to higher royalty rates per chip and increased use of Arm's chips in data centers, alongside license and other revenue gains.

What is Arm Holdings' forecast for the fiscal fourth quarter?

The company anticipates adjusted earnings between 54 cents and 58 cents per share and revenue of approximately $1.47 billion for the fiscal fourth quarter.

Home / Business and Economy / Arm Holdings Profit Dips Despite AI Chip Demand Surge

Arm Holdings Profit Dips Despite AI Chip Demand Surge

5 Feb

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Summary

Quarterly profit decreased to $223 million from $252 million year-over-year.
Revenue increased by 26% to $1.24 billion due to strong AI chip demand.
The company forecasts continued growth with strong demand for AI chips.

Arm Holdings Profit Dips Despite AI Chip Demand Surge

Arm Holdings, the British semiconductor company, reported a decrease in its latest quarterly profit, with earnings falling to $223 million from $252 million in the corresponding period last year. This profit decline occurred even as sales saw a substantial increase.

Revenue for the quarter grew by 26%, reaching $1.24 billion, surpassing analyst expectations. This growth was fueled by a 27% rise in royalty revenue to $737 million, attributed to increased royalty rates per chip and heightened utilization of Arm's chips within data centers. License and other revenues also saw a 25% gain, contributing to the overall positive revenue trend.

Chief Executive Rene Haas noted the accelerating demand for AI computing on their platform. Looking ahead, the company provided guidance for the fiscal fourth quarter, projecting adjusted earnings between 54 cents and 58 cents per share, with revenue anticipated to be around $1.47 billion. Analysts, however, had projected revenue closer to $1.44 billion.