The chip designer cut its annual sales forecast citing weaker-than-expected phone shipments and macroeconomic pressures.
Arm Holdings reduced its full-year revenue outlook after reporting softer demand for smartphone chips. The company now expects sales between $3.1 billion and $3.2 billion, below prior guidance of $3.2 billion to $3.3 billion, driven by declining phone shipments and broader economic uncertainty.
Analysts had anticipated revenue near the midpoint of Arm’s earlier forecast range. The warning follows a 14% year-over-year drop in smartphone shipments in Q2, according to industry data, marking the sector’s weakest performance in a decade.
Shares fell 5% in after-hours trading as investors weighed the implications for semiconductor suppliers and mobile device manufacturers.