Arm Shares Slide 2.68% as Volume Plummets 67.38% to 103rd Rank on Mixed Earnings and Analyst Cuts

On August 1, 2025, Arm Holdings (ARM) closed with a 2.68% decline, trading volume of $1.06 billion—a 67.38% drop from the prior day—ranking it 103rd in market volume. The stock’s performance followed a mixed earnings report and analyst adjustments.

Arm reported Q1 fiscal 2026 results, showing 12% year-over-year revenue growth to $1.05 billion, driven by a 25% surge in royalty income to $585 million. However, licensing revenue fell 1% to $468 million. Adjusted net income dropped to $374 million ($0.35/share) from $419 million in the prior year, meeting profit estimates but falling short of revenue forecasts of $1.06 billion. Management projected Q2 revenue of $1.01–$1.11 billion, suggesting stagnation or a decline compared to Q1, with adjusted earnings of $0.29–$0.37.

Analyst reactions were bearish despite mixed initial responses. UBS cut its price target to $175 from $185, while Morgan Stanley reduced its target to $180 from $194, both maintaining buy ratings. These adjustments amplified investor concerns about near-term growth and profitability, contributing to the stock’s decline.

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