Snap tops 30 million paid subscribers as shares fall after earnings
Daily active users reached 495 million in the third quarter, below analysts’ expectations of 499 million.
Arm revenue tops estimates as licensing fees outpace expectations
Adjusted earnings also exceeded forecasts, but royalty revenue missed estimates and shares fell about 2% in extended trading.
Arm Holdings reported second-quarter revenue of $1.44 billion on November 4, exceeding the $1.38 billion analyst consensus compiled by LSEG as customers used its chip architecture for AI computing products. Adjusted earnings reached 52 cents per share, above the 47 cents expected.
Licensing fees brought in $773 million, exceeding estimates of $625.1 million. Royalties increased 8% to $670 million but fell short of the $720.8 million forecast. Arm shares declined about 2% in extended trading.
Rather than manufacturing chips, Arm licenses processor designs and collects royalties when chips using its technology are shipped. Cloud companies developing custom processors for data centers have helped support demand for its architecture.
Arm said its architecture represented more than 50% of server-chip deployments at major cloud providers in 2025. The company expects that share to surpass 60% by the end of 2026.
For the third quarter, Arm forecast revenue of $1.54 billion, slightly above analysts' average projection of $1.53 billion.
In October, a Delaware jury determined that Arm had violated portions of its Qualcomm licensing agreement and interfered with Qualcomm's relationship with Meta. The jury awarded $2 in damages; a judge will decide key disputes involving royalties and future licensing terms.