Arm Holdings (ARM) de🌳livered an outlook that came in below analysts' expectations, sending shaꦯres lower in extended trading Wednesday.

The chip designer and Nvidia (NVDA) partner said it anticipates fiscal first-quarter adjusted earnings per share of 30 cents to 38 cents, short of the 41 cents called for by Wall Street, according to Visible Alpha. Arm's reven꧑ue f🎃orecast, of $1 billion to $1.1 billion, was also lower than the analyst consensus at the midpoint of its range.

Arm shares fell some 9% in after-hours trading. The stock is up less than 1% so far in 2025 thr🍷ough Wednesday’s close.

In its fiscal fourth quarter, Arm posted record revenue of $1.24 billion, up 34% year-over-year and above the analyst consensus from Visible Alpha. Adjusted net income was $584 million, or 55🐟 cents per share, compared to $376 million, or 36 cents per share, a year earlier, surpassing Wall Street’s estimates.

Arm's royalty revenue improved 18% to a record $607 million, while its license and other revenue gained 53% to $634 million.