Arm Holdings forecast third-quarter revenue of about $1.54 billion, plus or minus $50 million, only slightly above Wall Street estimates.

Analysts surveyed by Bloomberg had expected $1.53 billion on average. Shares fell about 5 percent after hours.

Adjusted earnings are expected at 56 cents a share, plus or minus 4 cents, for the quarter running through December.

Second-quarter revenue was $1.44 billion, beating the $1.38 billion estimate. Adjusted profit of 52 cents beat estimates of 47 cents.

Licensing revenue hit $773 million against estimates of $625 million. Royalties rose 8 percent to $670 million, below the $721 million estimate.

CEO Rene Haas said demand is strong around data centres. Arm expects to sell $2 billion of its AGI CPU in fiscal 2027 and 2028.

Its server architecture accounted for more than 50 percent of major cloud deployments in 2025 and is expected to exceed 60 percent by end-2026.

Arm licenses processor designs rather than making chips, and earns fees and royalties when others ship Arm-based silicon.

Read the full Arm Holdings earnings story on Trends News Stories.

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