Arm Holdings 1Q Profit, Revenue Increases on AI Demand

By Connor Hart

Arm Holdings posted higher profit and revenue in its fiscal first quarter as demand for artificial intelligence-enabled devices boosts demand for the company's chips.

The semiconductor and software design company on Wednesday reported a profit of $223 million, or 21 cents a share, up from $105 million, or 10 cents a share, in the year-ago quarter. Analysts polled by FactSet expected per-share earnings of 34 cents.

Revenue rose 39% to $939 million. Wall Street analysts expected revenue of $905.5 million, according to FactSet.

License and other revenue increased 72% to $472 million from the prior year, as the company signed multiple high-value license agreements. Royalty revenue was up 17% to $467 million, driven by the adoption of Arm's chips and strong growth in premium smartphones, the company said.

"As the energy needs of AI continue to escalate, so does the demand for the high-performance, power-efficient Arm compute platform," said Chief Executive Rene Haas.

For its second fiscal quarter, Arm expects revenue between $780 million and $830 million. Analysts polled by FactSet expect revenue of $801.8 million.

The company backed its full-year revenue outlook of between $3.8 billion and $4.1 billion, in line with analysts' views.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

July 31, 2024 16:57 ET (20:57 GMT)

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