Arm Holdings reported record fiscal fourth-quarter revenue of $1.49 billion, surpassing the $1.47 billion consensus estimate. Adjusted earnings reached $0.60 per share, beating expectations of $0.58. Licensing revenue grew 29% during the period, supported by strong data center technology demand.
Shares fell 5-6% in after-hours trading despite the earnings beat and positive forward guidance. Executives revealed the company has not yet secured the supply necessary to meet over $2 billion in demand for its new AI data-center CPUs.
The market reaction signals heightened investor sensitivity toward supply chain execution for AI-related hardware. Robust demand for data center technology failed to offset concerns regarding potential roadblocks to future growth.