Arm Holdings shares fall as licensing sales miss estimates

Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure

Shares of UK-based semiconductor designer Arm Holdings fell in aftermarket trading, despite the company posting record revenues amid AI demand.

Arm faces investor scrutiny as licensing miss collides with smartphone cost pressures

Arm Holdings shares fell approximately 8% in extended trading on February 4 after the chip IP provider reported the third-quarter fiscal 2026 licensing revenue that trailed analyst expectations. The shortfall overshadowed record royalty results and an improved revenue outlook.

Arm Holdings shares fall as licensing sales miss estimates

Arm's stock crashes 10% despite earnings beat, thanks to $505M licensing revenue miss

Arm’s stock got slammed on Wednesday night, dropping by 7.48% after hours, and by Thursday morning, the crash had widened to 10%, even though the company pulled in record revenue. The problem here is Wall Street wanted to see $519.9 million in licensing revenue, and Arm only brought in $505 million, so the trading floor got kind of pissed. But that wasn’t the only reason traders bailed. They also didn’t like the company’s weak guidance or the ba…