The Zhitong Financial Season App learned that chip design company Arm Holdings (ARM.US) released its fourth fiscal quarter results report after the US market on Wednesday EST. In the fourth fiscal quarter ending March, the company's revenue was US$928 million, an increase of 47% over the previous year, exceeding the market's consensus forecast of US$880.4 million. Excluding certain items, non-GAAP earnings per share were 36 cents, exceeding the market's consensus estimate of 30 cents.

Arm's authorized sales for the quarter were $414 million, up 60% year over year, and royalty revenue was $514 million, up 37% year over year. CEO Rene Haas said authorized revenue represents the technology company's “R&D and investment confidence.”

Looking ahead to the next fiscal quarter, Arm said that in the first fiscal quarter ending June, the company's sales will reach 875 million to 925 million US dollars, while analysts agree that it is 868 million US dollars. After deducting certain items, non-GAAP earnings per share would be 32 cents to 36 cents, with analysts expecting 31 cents.

Notably, however, due to Arm's lukewarm earnings forecast for the fiscal year, the company's stock price declined all the way after the market, raising concerns that the AI investment boom in the tech industry is slowing down. At press time, ARM was down 9.7% to $95.80.

The company said that in the 2025 fiscal year ending March next year, the company's revenue will reach 3.8 billion to 4.1 billion US dollars, and non-GAAP earnings per share of 1.45 to 1.65 US dollars. Analysts forecast total revenue of $4.01 billion, up 26% year over year, and non-GAAP earnings per share of $1.53.

In the last fiscal quarter, an optimistic performance guide caused the company's stock price to soar by 24%, and the company became the darling of Wall Street artificial intelligence stocks. By Wednesday's close, the company's stock price had risen 41% this year.

Arm's chip design and licensing standards have become key technology for most smartphones. Under CEO Rene Haas (Rene Haas), the company is trying to transform this position into greater influence in data center hardware based on the demand for artificial intelligence that is spurring major upgrades in data center hardware. As part of this experiment, Arm is providing companies such as Amazon (AMZN.US) and AWS with a more complete technical blueprint.

Haas said in an interview that Arm is still “very confident about long-term growth.” “Many of the strategies we developed a few years ago are gradually being implemented,” he said.

The company's chief financial officer Jason Child said in a conference call with analysts that the company believes the revenue growth rate will reach at least 20% in the 2026 and 2027 fiscal years.

Arm plays an unusual role in the semiconductor industry. The company licenses the basic instruction set used to communicate between software and chips, and also provides chip design modules, enabling companies such as Qualcomm (QCOM.US) to build their own products using these modules.

Arm has been moving towards providing a more complete layout that can be directly used in the manufacturing phase. This transformation has made it a competitor to customers like Qualcomm, but the change is more valuable to other customers, particularly large data center owners.

Arm, headquartered in Cambridge, England, is still 90% of the shares held by SoftBank Group, which acquired the company for 32 billion US dollars in 2016. In 2023, Arm conducted an initial public offering (IPO) and raised US$4.9 billion, setting a record for the largest US stock IPO of the year.