The replica of the ARM is an electronic chip board during a collaborative ceremony launching a partnership between Malaysia and ARM Holdings in Kuala Lumpur, Malaysia, on March 5, 2025.
Arm Holdings shares dipped as much as 9% in after-hours trading on the company's first-quarter earnings results Wednesday.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Earnings per share : 35 cents adjusted vs. 35 cents expected
: 35 cents adjusted vs. 35 cents expected Revenue: $1.05 billion vs. $1.06 billion expected
The company said it expects second-quarter revenue in the range between $1.01 billion and $1.11 billion, which was in line with $1.05 billion expected by analysts tracked by LSEG.
Net income fell 42% to $130 million, or 12 cents a share, from $223 million, or 21 cents a share, a year earlier.
Arm is a chip technology firm that sells architecture for making chips that power billions of devices, including Apple and Qualcomm 's chips. However, CEO Rene Haas said in a Wednesday interview with Reuters that the company was "consciously deciding to invest more heavily" in technology "beyond designs," confirming the company is considering designing its own processors.
Executives told investors on an earnings call that the move could cause "execution risk." Arm already sells technology to nearly every top chip designer, and Arm introducing its own completed chiplets or semiconductors could make its customers into competitors.
Arm's customers include CSPs or cloud service providers like Microsoft and Amazon that are developing custom chips based on Arm. OEMs, or original equipment manufacturers, are companies like Apple that design their own computers.
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