Arm Beats Earnings. The Stock Is Rising.
By Tae Kim
Updated Nov 06, 2025, 6:45 am EST / Original Nov 05, 2025, 1:15 am EST
Arm Holdings reported better-than-expected earnings results late Wednesday. Its shares were rising in Thursday’s premarket.
For the September quarter, the chip designer reported adjusted earnings per share of 39 cents, compared to Wall Street’s consensus estimate of 33 cents, according to FactSet. Revenue came in at $1.135 billion, which was ahead of analysts’ expectations of $1.06 billion.
Arm also gave a strong outlook. It said revenue for the current quarter would be $1.225 billion at the midpoint of its range, versus the $1.11 billion average analyst estimate.
“Arm delivers unmatched performance, efficiency, and software breadth across the full range of AI workloads,” the company said in a shareholder letter.
Arm shares rose 6.6% ahead of Thursday’s opening bell.
U.K.-based Arm makes money by licensing its chip designs to semiconductor companies and smartphone makers such as Apple and Qualcomm. Arm’s latest advanced chip technology, called Armv9, generates higher royalty rates than its previous Armv8. It is also making progress in the high-end cloud server processor market by selling chip technology to Microsoft and Nvidia.
Last week, KeyBanc Capital Markets analyst John Vinh reaffirmed his Overweight rating for the stock and reiterated his $190 price target.
Vinh said his checks for Arm-based server chip usage were solid with cloud computing companies.
Arm stock is up 30% this year as of Wednesday’s close, compared with the 42% gain for the iShares Semiconductor ETF.
Write to Tae Kim at tae.kim@barrons.com
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Qualcomm fell 2.8% after the company, best known as a chip maker for Android smartphones, posted better-than-expected fiscal fourth-quarter adjusted earnings of $3 a share on revenue of $11.27 billion. Qualcomm said it expects fiscal first-quarter adjusted profit of $3.30 to $3.50 a share versus consensus of $3.32, on revenue of $11.8 billion to $12.6 billion that was better than predicted, but expense growth exceeded expectations.
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