SoftBank Group Corp’s Arm Ltd is expected to report a 1% fall in revenue for the year ended March 2023, ahead of the semiconductor’s initial public offering (IPO) filing on Monday, a source familiar with the matter revealed. The company’s revenue fell to $2.68 billion for the 12-month period, while revenue for the quarter ending June 30 declined 2.5% to $675 million.
This latest development is a sharp reversal from SoftBank’s previous announcement in May that Arm’s revenue for the year had increased by 5.7% under International Financial Reporting Standards. Arm is expected to release its latest financials next week under U.S. accounting standards.
Arm’s revenue slip comes as the demand outlook for tech products outside the artificial intelligence (AI) industry remains low. PC, smartphone, and data center markets have all shrunk over the course of 2023. This came as consumers reduced their spending amid high inflation, rising interest rates, and a struggling global economy.