Arm Holdings (ARM) reported fiscal third-quarter results that topped Wall Street estimates and raised the midpoint of its narrowed sales outlook. However, s💛hares fell in extended trading Wednesday as investors may have been looking for stronger results.

The chip designer and Nvidia (NVDA) partner's third-quarter revenue rose 19% year-over-year to a record $983 million, above the analyst consensus compiled by Visible Alpha. Earnings came in at $252 million, or 24 cents per share, compared to $87 million, or 8 cents per share, a year earlier, also beat🐬ing expectations.

By category, Arm's royalty revenue improved 23% to $580 million, while its license and other revenue grew 14% to $403 million.

🧸Looking ahead, Arm said it anticipates fourth-quarter reveඣnue of $1.175 billion to $1.275 billion, with the midpoint in line with estimates.

Arm also narrowed its full-year revenue forecast range to $3.94 billion to $4.04 billion, lifting the midpoint to $3.99 billion from $3.95 billion. The midpoint of its forecast for adjusted 澳洲幸运5开奖号码历史查询:earnings per share climbed to $1.60 from $1.55. Analysts ha🌺d called for revenue of $3.96 billion🗹 and adjusted EPS of $1.57.

The results come after Arm was recently named a key technology partner in a 澳洲幸运5开奖号码历史查询:$500 billion joint venture with Arm majority owner SoftBank, OpenAI, and Oracle (ORCL) to build 澳洲幸运5开奖号码历史查询:artificial intelligence infrastructure in the U.S. This week, SoftBank and OpenAI formed an additional joint venture to 澳洲幸运5开奖号码历史查询:expand AI services for businesses globally, starting in Japan.

Arm shares dropped about 6% in extended trading Wednesday following the company's earnings release, erasing gains during the regular session. The stock has more than doubled in value over the past 12 months through Wednesday's close.