Arm Holdings Plc shares rose on May 6, 2026, after the chip designer projected stronger-than-expected revenue growth driven by artificial intelligence data center demand, offsetting a warning about ongoing weakness in the smartphone market.
The company reported fiscal fourth-quarter revenue of $928 million, beating analyst estimates, and forecast current-quarter revenue of $875 million to $925 million, above the average analyst projection of $860 million, according to Bloomberg data.
Arm's AI-related revenue, including from data center chips and edge AI devices, is expected to grow more than 50% in the current fiscal year, the company said. However, Arm warned that smartphone royalty revenue, which accounts for a significant portion of its total, would decline in the near term due to a sluggish handset market.
Shares of Arm, which is majority-owned by SoftBank Group Corp., rose as much as 8% in after-hours trading following the earnings release. The stock has more than doubled over the past 12 months, driven by investor enthusiasm for AI-related chip companies.
