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Arm posts record revenue in first results since IPO

Arm share price
Image credit: Arm

Chip designer Arm has reported a 28% year-on-year increase in revenue, its highest ever at $806m (£656.5m) in its first financial results since its IPO.

Despite the revenue growth, shares in the Cambridge-headquartered company fell by up to 8% after it posted a sales outlook below Wall Street expectations. Arm is estimating full-year revenue in the range of $2.96bn to $3.08bn.

The revenue growth was in part achieved by licencing agreed with technology firms along with more royalties from market share and larger royalty rates.

Arm, which creates designs for the semiconductors powering many of the world’s electronic devices, benefited from the growing demand for chips to power AI applications. Arm said the AI boom drove a 106% year-on-year increase in licence revenue....