ARM Earnings Prediction
The chart below shows how ARM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARM sees a -1.11% change in stock price 10 days leading up to the earnings, and a +18.44% change 10 days following the report. On the earnings day itself, the stock moves by +2.69%. This data can give you a slight idea of what to expect for the next quarter's release.
ARM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
844.00M
4.71%
-10.12%
Gross Margin
96.21%
2.04%
-0.29%
Operating Margin
7.58%
139.17%
-60.89%
Net Margin
12.68%
192.89%
-46.61%
EPS
0.10
190.91%
-52.38%
No Data Available
ARM Earnings Analysis
Arm Holdings plc American Depositary Shares Corporation (ARM.O) Earnings Conference Call
Positive
Arm Chip Market Presence: Over 300 billion Arm chips have been shipped to date, showcasing the company's significant market presence.
Q2 Revenue Exceeds Guidance: Total revenue for Q2 was $844 million, exceeding the top end of the guided range.
Record Royalty Revenue Growth: Royalty revenue reached $514 million, growing 23% year-over-year, matching the highest royalty revenue quarter to date.
Smartphone Royalty Revenue Surge: Smartphone royalty revenue grew 40% year-over-year, significantly outperforming the previous quarter's 4% growth.
Arm Version 9 Adoption: The adoption of Arm's Version 9 architecture is driving strong demand across various sectors, particularly in mobile and automotive markets.
Negative
Licensing Revenue Decline: Licensing revenue declined 15% year-over-year to $330 million, which was better than our expectations of a 25% decline.
R&D Expense Increase: R&D expenses are expected to be around $525 million, indicating a significant increase in costs.
Q3 Revenue Growth Forecast: The company anticipates revenue growth between $920 million and $970 million for Q3, which represents a slowdown compared to previous quarters.
Smartphone Royalty Revenue Growth: The royalty revenue for smart phones grew only 40%, contrasting sharply with the 4% unit growth in the previous quarter, indicating a potential market saturation.
Unchanged Revenue Guidance: The forecast for the full year revenue guidance remains unchanged, suggesting limited growth potential.
ARM FAQs
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ARM Earning Call Sentiment
Arm Holdings plc (ARM) Q2 2025 Earnings Call Transcript
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ARM.O
-10.19%Positive
Despite the ongoing litigation with Qualcomm, Arm Holdings reported strong financial performance, exceeding revenue guidance with $844 million total revenue and significant royalty growth driven by v9 adoption. The company also provided an optimistic outlook on royalty growth and market expansion. However, the lack of a share repurchase program and increased R&D expenses pose minor risks. Overall, the positive financial results, coupled with optimistic guidance and market expansion, suggest a positive stock price movement over the next two weeks.