ARM issues FY 2025 revenue guidance slightly below analyst expectations

The company's average guidance for the rest of its fiscal year couldn't match Wall Street estimates at this time.

Image via ARM Ltd.

ARM Holdings Ltd. was one of the most recent companies to report on its latest fiscal quarter, and with it came guidance for the companies 2025 fiscal year. Unfortunately, it wasn’t entirely good news. The company’s guidance was in the multiple billions, but it was just under what was expected. This was despite putting up beats on both revenue and earnings-per-share (EPS) for the quarter.

ARM posted its Q4 2024 earnings results on its investor relations website this week. In the Q4 earnings report, it also shared its guidance for FY2025, which ended up in the range of $3.8 billion to $4.1 billion. Unfortunately, the median fell at $3.95 billion, which was just a hair beneath Wall Street expectations that landed at $4 billion. ARM stock saw a sharp dip from over $107 per share down to under $100 in after-hours trading following the earnings results and guidance release.

ARM Holdings Ltd stock as of May 8, 2024 at 5:04 pm ET
ARM Holdings Ltd stock was down in after-hours trading following the release of the company's Q4 2024 earnings results and its FY2025 guidance.
Source: Google

There’s little reason to believe ARM Holdings is in any kind of trouble. The company still put up a winning Q4 2024, ending up well above expectations in its EPS and revenue metrics. Still, the under-estimate guidance for the coming fiscal year shares some level of caution in the company. Even so, ARM is a leader in chip design with its architectures serving as the basis for products around the world, including many of Apple Silicon’s chips. While the guidance may be cautious, ARM’s performance and importance throughout the global tech industry doesn’t seem to be slipping.

It will be interesting to see if ARM’s upcoming quarters reflect its cautious guidance in any way. Stay tuned as we watch for its next quarterly earnings results and report on other companies share their results this season.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at and also find him on Twitter @JohnnyChugs.

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