) reported second-quarter earnings that surpassed analyst expectations, but its stock fell 3% in after-hours trading. The chip designer posted adjusted earnings per share of $0.30, beating the consensus estimate of $0.26, while revenue came in at $844 million, exceeding the expected $744.31 million.
License and other revenue declined 15% YoY to $330 million, which the company attributed to normal fluctuations in timing and size of high-value license agreements. For the third quarter, Arm Holdings provided guidance of $0.32-$0.36 EPS and revenue between $920-970 million. The midpoint of this guidance aligns closely with analyst expectations of $0.34 EPS and $945 million in revenue.
Arm's annualized contract value grew 13% YoY to $1,253 million, and remaining performance obligations increased 10% quarter-over-quarter to $2,385 million.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.