Arm makes the CPU architecture for chips found in nearly all smartphones. An Arm chip is shown here in San Jose, California, on October 12, 2023.
Sydney Boyo
Arm reported fiscal third-quarter earnings Wednesday that beat estimates and gave a strong profit forecast for the current quarter. The shares soared as much as 41% in extended trading.
Here’s how the company did for the quarter ending December versus consensus estimates from LSEG, formerly known as Refinitiv:
Earnings per share: 29 cents adjusted vs. 25 cents expected
Revenue: $824 million vs. $761 million expected
Arm, whose chip design technology is in nearly every smartphone and many PCs, said it expects earnings per share for the fiscal fourth quarter of between 28 cents and 32 cents on sales of $850 million to $900 million. Analysts expect earnings of 21 cents per share on sales of $780 million.
The company reported net income of $87 million, or 8 cents per share. Total revenue in the quarter increased 14% from a year earlier.
Arm makes money through royalties, when companies pay for access to build Arm-compatible chips, usually amounting to a small percentage of the final chip price.
Arm said its customers shipped 7.7 billion Arm chips during the September quarter, the most recent period for which figures are available.
The stock rose as high as $108.89 in after-hours trading, but later slipped below $100. It close on Wednesday at $77.01.
Royalty revenue increased 11% on an annual basis to $470 million. The company said the jump was partially because of a recovery in the smartphone market, as well as increasing sales to automotive companies and cloud providers. Arm said it expects growth to be driven by royalty revenue.
In recent years, Arm has emphasized its licensing business, selling access to more complete designs that semiconductor companies can plug into their planned chips. That process saves chipmakers time and effort, and it’s more lucrative for Arm than simply collecting royalties.
Arm’s license and other revenue was $354 million, up 18% year over year. Arm said more companies were choosing to license its CPU designs to run artificial intelligence, and that the company charges higher licensing fees for advanced designs.
Arm, which had been owned by SoftBank, went public in September. The company was founded in 1990 to develop technology for low-power chips, but became more important to the overall technology industry when the Apple iPhone and competing Android devices standardized on Arm-based chips.
Arm says companies including Apple, Google, Microsoft and Nvidia use its technology.
Waymo announced it is now offering teen accounts for its self-driving car service Waymo One, beginning in Phoenix, Arizona.
Courtesy of Waymo
Waymo announced Tuesday that it is offering accounts for teens ages 14 to 17, starting in Phoenix.
The Alphabet-owned company said that, beginning Tuesday, parents in Phoenix can use their Waymo accounts “to invite their teen into the program, pairing them together.” Once their account is activated, teens can hail fully autonomous rides.
Previously, users were required to be at least 18 years old to sign up for a Waymo account, but the age range expansion comes as the company seeks to increase ridership amid a broader expansion of its ride-hailing service across U.S. cities. Alphabet has also been under pressure to monetize AI products amid increased competition and economic headwinds.
Waymo said it will offer “specially-trained Rider Support agents” during rides hailed by teens and loop in parents if needed. Teens can also share their trip status with their parents for real-time updates on their progress, and parents receive all ride receipts.
Teen accounts are initially only being offered to riders in the metro Phoenix area. Teen accounts will expand to more markets outside California where the Waymo app is available in the future, a spokesperson said.
Waymo’s expansion to teens follows a similar move by Uber, which launched teen accounts in 2023. Waymo, which has partnerships with Uber in multiple markets, said it “may consider enabling access for teens through our network partners in the future.”
Already, Waymo provides more than 250,000 paid trips each week across Phoenix, the San Francisco Bay Area, Los Angeles, Atlanta, and Austin, Texas, and the company is preparing to bring autonomous rides to Miami and Washington, D.C., in 2026.
In June, Waymo announced that it plans to manually drive vehicles in New York, marking the first step toward potentially cracking the largest U.S. city. Waymo said it applied for a permit with the New York City Department of Transportation to operate autonomously with a trained specialist behind the wheel in Manhattan.
Indian Prime Minister Narendra Modi arrives at the White House to meet with U.S. President Donald Trump on Feb. 13, 2025 in Washington, DC.
Andrew Harnik | Getty Images News | Getty Images
Elon Musk’s X said Tuesday that the Indian government ordered the company to block 2,355 accounts, including Reuters, in the country.
“The Ministry of Electronics and Information Technology demanded immediate action- within one hour- without providing justification, and required the accounts to remain blocked until further notice,” X’s global government affairs account posted.
The main Reuters account, along with ReutersWorld, was blocked Saturday for users in India, the news service said. Screenshots showed the message “Account withheld @Reuters has been withheld in IN in response to a legal demand.”
The Indian government’s Press Information Bureau told Reuters that no government agency had required blocking the account and said it was working with X to resolve the issue. The accounts were restored on Sunday.
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The statement by X on Tuesday is the latest development in an ongoing censorship legal battle between Musk’s social media site and the Indian government led by Prime Minister Narendra Modi.
X sued Modi’s government in March, accusing India’s IT ministry of unlawfully expanding online censorship to allow the easier removal of content.
Musk often refers to himself as a free speech absolutist and has said his takeover of Twitter was partly due to what he viewed as the unfair restriction of conservative views and voices.
The Tesla CEO swiftly made changes to moderation after he acquired the site, which he later renamed to X.
Robinhood CEO Vlad Tenev says it’s not “entirely relevant” that the trading platform’s so-called tokenized shares of OpenAI and SpaceX aren’t technically equity in the companies.
It comes after OpenAI raised concerns about the product, which is designed to give users in the European Union exposure to various U.S. stocks — including private companies, which are less liquid than publicly listed firms.
OpenAI last week warned that Robinhood’s stock tokens do not represent equity in the company and said in a post on X that, “any transfer of OpenAI equity requires our approval — we did not approve any transfer.”
Robinhood says its OpenAI stock tokens are “enabled by Robinhood’s ownership stake in a special purpose vehicle.”
“It is true that these are not technically equity,” Tenev, who co-founded Robinhood in 2013 with fellow entrepreneur Baiju Bhatt, told CNBC’s “Squawk Box Europe” Tuesday, echoing his initial response to OpenAI’s concerns.
Tenev said that OpenAI’s complex company structure enables institutional investors to gain exposure to the company through “various instruments, like equity upon the event of a conversion to a for-profit at a later date.”
OpenAI was initially founded as a non-profit organization. However, it has since evolved to include a for-profit entity, which is owned by the non-profit.
“In and of itself, I don’t think it’s entirely relevant that it’s not technically an equity instrument,” he said. “What’s important is that retail customers have an opportunity to get exposure to this asset” — even if it’s a private company — due to the disruptive nature of AI, he added.
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On Monday, the Bank of Lithuania, which is Robinhood’s lead authority in the European Union, told CNBC it was “awaiting clarifications” regarding the structure of the company’s stock tokens following OpenAI’s statement last week.
“Only after receiving and evaluating this information will we be able to assess the legality and compliance of these specific instruments,” Bank of Lithuania spokesman Giedrius Šniukas told CNBC. “The information for investors must be provided in clear, fair, and non-misleading language.”
Tenev said in response to the Lithuanian regulator’s comments that Robinhood is “happy to continue to answer questions from our regulators.”
“Since this is a new thing, regulators are going to want to look at it, and we’ve built this program in a way that we believe will withstand scrutiny — and we expect to be scrutinized as a large, innovative player in this space,” he told CNBC.