Demand VisibilityLimited demand visibility in key markets such as handsets, automotive, and IoT could impact ARM's units and mix.
Licensing RevenueThe disappointing guide is mainly driven by more than expected decline in Licensing revenues, down 28% year-over-year versus expectation of down 15%.
Operating ExpensesThe downside surprise is around OpEx, as the company guided a significant step-up in OpEx in F1Q26, which could lead to some margin compression.