Arm Holdings (ARM) saw its shares tumble in after-hours trading, despite reporting fiscal first-quarter earnings that exceeded expectations. The company’s stock fell over 12% after gaining more than 8% during the regular session, even as it continues a remarkable run with a 90% increase so far in 2024.

The decline came after Arm Holdings provided a weaker-than-expected earnings outlook for the current quarter. The chip-design firm projected adjusted earnings per share (EPS) in the range of 23 to 27 cents, which fell short of some analyst estimates.

For the fiscal first quarter ended June 30, Arm reported record revenue of $939 million, marking a 39% increase year-over-year and surpassing the analyst consensus of $912 million, according to Visible Alpha. Diluted EPS for the quarter was 21 cents, more than double the 10 cents reported in the same period last year and exceeding expectations of 16 cents.

The revenue boost was fueled by a 72% surge in licensing and other revenue, which reached $472 million. Additionally, royalty revenue grew 17% to $67 million, driven by the adoption of Armv9-based chips.