Arm Holdings, a chip technology provider, said that it no longer expects to reach the upper end of its full year guidance but slightly surpassed Wall Street’s estimates for the current quarter.

Despite this, shares fell 6% in after-hours trading.

The UK-based company adjusted its revenue guidance to US$3.94 billion to US$4.04 billion, slightly lower than the previous forecast.

For Q3, Arm reported US$983 million in revenue, a 19% year-on-year increase, surpassing expectations.

Arm expects fourth-quarter revenue between US$1.18 billion and US$1.28 billion, slightly above analysts’ projections.

The company is focusing on expanding royalties from its latest Armv9 chip technology and data center applications.

Recent Arm developments