Arm Holdings Falls 7% After Hours Despite EPS, Revenue Beat

Arm Holdings reported a significant financial performance with a double beat in its quarterly earnings, surpassing expectations with an EPS of $0.36 against estimates of $0.30 and revenue of $928M, exceeding forecasts of $875.59M. Despite these strong results and a positive guidance for the next quarter, Arm's stock fell over 7% in after-hours trading. The company's annual revenue forecast did not meet Wall Street's expectations, which has led to a decline in its share price. The company also sees strong tailwinds for 2025 and is trading at a 90x forward P/E.