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nvesting.com – Arm Holdings reported softer guidance Wednesday following mixed first-quarter fiscal 2026 results even as rising AI and automotive demand continue to underpin performance.
Arm Holdings ADR (NASDAQ:ARM) fell more than 8% in recent afterhours trading Wednesday.
For the three months ended June 30, 2025, Arm Holdings plc reported adjusted earnings per share of $0.35 on revenue of $1.05 billion, in line with analyst expectations for EPS of $0.35 and revenue of $1.06 billion.
Royalty revenue rose 25% year-over-year to $585 million, fueled by accelerating adoption of Armv9 architecture, the growing number of Arm Compute Subsystems chips shipping for datacenter, automotive, and mobile applications, and expanded customer workloads featuring AI and edge computing.
Looking ahead, Arm’s guidance for the fiscal second quarter fell short of estimates. The company forecasted non-GAAP EPS between $0.29 and $0.37, slightly below the consensus estimate of $0.35, and revenue of $1.01 billion to $1.11 billion, around Wall Street’s $1.07 billion midpoint estimate.