Arm Holdings Plc (NASDAQ:ARM) reported financial results for the third quarter of fiscal 2026 after the market close on Wednesday. Here's a rundown of the chip designer’s report.



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<li>ARM Holdings stock is losing ground. Why is ARM stock trading lower?</li>
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<h2>Arm Exceeds Analyst Expectations In Q3</h2>



Arm reported fiscal third-quarter revenue of $1.24 billion, beating analyst estimates of $1.22 billion. The company reported adjusted earnings of 43 cents per share for the quarter, beating estimates of 41 per share, according to Benzinga Pro.



Total revenue was up 26% year-over-year in the quarter. Royalty revenue climbed 27% year-over-year to $737 million, driven by growth across target end markets, including AI and general purpose data center, smartphones, physical AI and edge AI. The company said licensing revenue grew 25% year-over-year to $505 million.



“Demand for the Arm platform is strong as more leading companies signed high-value licenses for next generation technologies,” the company said in a letter to shareholders.



Annualized contract value (ACV) was up 28% year-over-year to $1.62 billion. Arm said it generated $365 million of operating cash flow and $169 million of adjusted free cash flow in the quarter.



The chip design firm ended the period with $3.54 billion in cash, cash equivalents and short-term investments.



&#34;Arm delivered a record revenue quarter as demand for AI computing on our platform continues to accelerate,&#34; said Rene Haas, CEO of Arm Holdings. “The fundamentals of the Arm business have never been stronger.”



<h2>Arm Issues Guidance For Q4</h2>



Arm expects fourth-quarter revenue of $1.42 billion to $1.52 billion versus estimates of $1.44 billion. The company anticipates fourth-quarter adjusted earnings of 54 cents to 62 cents per share versus estimates of 57 cents per share.



Arm executives will further discuss the quarter on an earnings call set for 5 p.m. ET.



<h2>ARM Shares Move Lower In After-Hours Trading</h2>



ARM Price Action: Arm shares were down 8.04% in after-hours, trading at $96.47 at the time of publication on Wednesday, according to Benzinga Pro.



Image: Shutterstock.com

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Arm Holdings Plc (NASDAQ:ARM) reported Q3 fiscal 2026 results, with revenue of $1.24 billion, exceeding estimates of $1.22 billion. Adjusted earnings were 43 cents per share, beating the expected 41 cents. Despite strong performance, ARM shares fell 8.04% in after-hours trading to $96.47. The company anticipates Q4 revenue between $1.42 billion and $1.52 billion, with adjusted earnings of 54 to 62 cents per share. CEO Rene Haas noted strong demand for AI computing on their platform, with annualized contract value up 28% year-over-year.

- Arm Holdings Plc reported a fiscal third-quarter revenue of $1.24 billion, surpassing analyst expectations of $1.22 billion.  
- Despite strong earnings growth, ARM shares fell 8.04% in after-hours trading, currently priced at $96.47.  
- The company forecasts fourth-quarter revenue between $1.42 billion and $1.52 billion, with adjusted earnings anticipated between 54 cents and 62 cents per share.

Arm Holdings Stock Slides On Q3 Earnings, AI Demand 'Continues To Accelerate'