StocksMedium•5 November 2026•
1 min read
Arm Stock Plunges 12% as Weak Smartphone Royalties Offset AI Growth
Key Facts
1Arm shares fell 12% as royalty revenue of $670 million missed analyst estimates of $705 million.
2The company reported total revenue of $1.44 billion, beating expectations of $1.38 billion.
3Adjusted earnings per share came in at 52 cents, topping Wall Street forecasts of 48 cents.
Arm shares fell 12% after the company reported royalty revenue of $670 million, missing analyst estimates of $705 million. Invezz reported that the company achieved total revenue of $1.44 billion for the fiscal second quarter, surpassing expectations of $1.38 billion. Adjusted earnings per share came in at 52 cents, topping Wall Street forecasts of 48 cents.
The sharp decline in the share price reflects investor sensitivity to weaknesses in legacy business segments like smartphones, even as the company demonstrates strong growth in artificial intelligence and data centers. Arm was trading lower on November 5, 2026, following the results, as the royalty revenue miss overshadowed the beats in total sales and earnings.