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ARM
Benzinga
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Arm Holdings Shares Move Lower Following Q1 Earnings: Revenue Miss, EPS In Line, Soft Q2 Earnings Guidance

1. ARM's Q1 revenue was $1.053 billion, slightly missing estimates. 2. Royalty revenue rose 25% year-over-year, reflecting strong AI adoption. 3. Adjusted earnings matched analyst expectations at 35 cents per share. 4. Second-quarter revenue outlook anticipates $1.01 to $1.11 billion. 5. ARM shares dropped 8.31% after earnings report, closing at $149.75.

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FAQ

Why Bearish?

Though revenue grew, the slight miss on estimates may indicate weaker market confidence, leading to a sell-off similar to past earnings misses in tech stocks like Meta Platforms, which faced sharp declines after falling short of expectations.

How important is it?

The article outlines critical earnings data impacting investor sentiment and stock valuation.

Why Short Term?

Immediate reactions to earnings releases typically influence stock prices; however, the strong year-over-year growth may stabilize price over time.

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