🧠 Arm surprised by the numbers but disappointed by the outlook!
Arm Holdings $ARM ended fiscal year 2025 with a record quarter, posting revenue of $1.24 billion which is 34% year-over-year growth. Yet the stock has fallen by more than 6 %. Shareholders were concerned about the cautious forecast for the next period.

This is a British technology company that specialises in the design of microprocessor architectures. It is best known for its energy-efficient processor cores, which are widely used in mobile phones, tablets, embedded systems and increasingly in servers and computers.

📊 Q4 FY25 figures:
Revenue: $1.241 billion (vs. expectations of $1.23 billion)

EPS: $0.55 (vs. $0.52 expected)

Licensing profit: +53% y/y

Royalties: +18% y/y to $607 million. USD

Non-GAAP operating profit: $655m y/y. USD

Non-GAAP operating margin: 52.8%

Annual revenue: USD 4.007 billion (+24% y/y)

FCF: 163 Mio. USD 163

Arm Continues strong growth due to increased use of architecture Armv9, the growth of chips in data centers and the expansion of programs Total Access a Flexible Accesswhich are generating longer-term licensing revenue.

📉 The forecast for Q1 2026 was the reason for the sell-off:
Revenue: $1.0-1.1 billion (vs. estimate of $1.1 billion)

EPS: $0.30-0.38 (vs. expected $0.42)

Investors reacted to the lower-than-expected outlook, which takes into account an increase in R&D spending. The company openly admits that it is purposely increasing investment in architectural development, which may weigh on margins in the short term but strengthens its technology lead in the long term.

💡 Strategic position:
Arm today stands behind 99 % of the world's premium smartphones.

Among its major customers, we find names like Nvidia, Qualcomm, Apple

Its model of combining licensing + per-chip fees creates a scalable, high-margin business

Arm thus delivered a strong finish to the fiscal year, with revenue and profitability growth confirming that demand for this architecture in AI, mobile and data center continues to grow. However, the weaker outlook is a signal of growth investments, not business problems.

What's your take on Arm?