Arm Holdings Shares Move Lower Following Q1 Earnings: Revenue Miss, EPS In Line, Soft Q2 Earnings Guidance

Financial Performance - Arm reported fiscal first-quarter revenue of $1.053 billion, slightly missing analyst estimates of $1.055 billion [1] - First-quarter revenue increased by 12% year-over-year, with royalty revenue climbing 25% year-over-year to $585 million [2] - The company generated $332 million of operating cash flow and $150 million of free cash flow in the first quarter [3] Revenue Breakdown - License and other revenue declined by 1% year-over-year [2] - Annualized contract value (ACV) rose by 28% year-over-year to approximately $1.53 billion [3] Market Outlook - Arm expects second-quarter revenue to be between $1.01 billion and $1.11 billion, compared to estimates of $1.056 billion [4] - The company anticipates second-quarter adjusted earnings of 29 cents to 37 cents per share, against estimates of 35 cents per share [4] Stock Performance - Arm shares fell by 8.31% in after-hours trading, reaching $149.75 at the time of publication [5]