Arm Holdings beats Q2 estimates but guidance only matches; shares fall ~5% after hours (Nov 4)
What happened
Arm Holdings reported fiscal Q2 FY2027 results (quarter ended Sept. 30) after Wednesday's close: adjusted EPS of 52 cents vs. 47-48 cents expected, and revenue of $1.44 billion, up 27% year over year vs. $1.38 billion expected. Earnings rose 33% from a year earlier, while GAAP EPS fell to 12 cents from 22 cents. But guidance for the current quarter merely matched expectations — adjusted EPS of 52-60 cents (~56 cents at the midpoint) vs. 55 cents consensus, and revenue of $1.49-$1.59 billion ($1.54 billion mid) vs. ~$1.53 billion expected. Shares fell roughly 4-5% in after-hours trading to around $185-191, after already sliding 5.3% in the regular session to close at $191.80.
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Start your free 14-day trialWho’s affected
- ARM — directly exposed; beat was expected, so in-line guidance triggered a ~5% after-hours drop on valuation grounds.
- NVDA, AMD, AVGO, INTC, MU, SNDK — AI hardware and memory peers whose investors use Arm's read on compute demand as a sector signal; a ho-hum guide does not refill the tank after Wednesday's chip selloff.
- AI infrastructure trade broadly — Arm's results are read as a data-center compute demand datapoint amid post-midterm regulatory worries.