Arm Holdings 1Q Profit, Revenue Increases on AI Demand
By Connor Hart
Arm Holdings posted higher profit and revenue in its fiscal first quarter as demand for artificial intelligence-enabled devices boosts demand for the company's chips.
The semiconductor and software design company on Wednesday reported a profit of $223 million, or 21 cents a share, up from $105 million, or 10 cents a share, in the year-ago quarter. Analysts polled by FactSet expected per-share earnings of 34 cents.
Revenue rose 39% to $939 million. Wall Street analysts expected revenue of $905.5 million, according to FactSet.
License and other revenue increased 72% to $472 million from the prior year, as the company signed multiple high-value license agreements. Royalty revenue was up 17% to $467 million, driven by the adoption of Arm's chips and strong growth in premium smartphones, the company said.
"As the energy needs of AI continue to escalate, so does the demand for the high-performance, power-efficient Arm compute platform," said Chief Executive Rene Haas.
For its second fiscal quarter, Arm expects revenue between $780 million and $830 million. Analysts polled by FactSet expect revenue of $801.8 million.
The company backed its full-year revenue outlook of between $3.8 billion and $4.1 billion, in line with analysts' views.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
July 31, 2024 16:57 ET (20:57 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks