Arm Beats Estimates, but Its New Plan to Build Chips Is the Real Story Here

Arm (NASDAQ: ARM), the world's largest mobile chip designer, posted its latest earnings report on Nov. 5. For the second quarter of fiscal 2026, which ended Sept. 30, its revenue rose 34% year over year to $1.14 billion and exceeded analysts estimates by $80 million. Its adjusted earnings per share (EPS) rose 30% to $0.39 and cleared the consensus forecast by $0.06.For the third quarter, Arm expects revenue to rise 25% year over year as adjusted earnings per share grows 5%. That outlook is stable, but Arm expects its near-term earnings growth to be throttled by its development of new chips and the expansion of its first-party chipmaking business.That plan to sell its own first-party chips marks a major deviation from the company's traditional business model of licensing its chip designs to other chipmakers. Let's see why Arm wants to produce its own chips -- and why that shift might matter more than its recent earnings beat.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool