Shares of British chipmaker Arm fell about 9% in premarket trading on Wall Street after it gave weak revenue guidance for fiscal 2025.
The company announced yesterday, Wednesday, May 8, an increase in revenues of about 47% to $928 million during the fourth fiscal quarter.
Commercial licensing business supported revenue, up 60% to $414 million, the company attributed to signing several licensing agreements for valuable AI chips.
On the other hand, Arm indicated that fiscal year 2025 revenues are expected to range between $3.8 billion and $4.1 billion, while analysts expected the company to record revenues of $3.99 billion.
The company also expected sales of $875 million to $925 million in the fiscal first quarter, compared with estimates of $857.5 million.
Citi analysts said that although fourth-quarter results beat expectations for the third straight quarter, guidance was below consensus.
In pre-market trading on Wall Street, Arm Holdings shares fell 8.1% to $97.4.
