Investing.com -- ARM delivered Wednesday annual revenue guidance that fell short of estimates following better-than-expected fiscal fourth-quarter results as licensing revenue was boosted by the ongoing wave of enterprise spending on artificial intelligence.

Arm Holdings ADR (NASDAQ: ARM) fell 7% in afterhours trading following the report.

The chip designer reported fiscal Q4 adjusted earnings of $0.36 per share on revenue of $928 million. That was ahead of Wall Street estimates for EPS of $0.21 on revenue of $780.2M.

License revenue rose 60% to $414M in Q4 year-over-year, driven by "multiple high-value license agreements being signed as companies increase investment in Arm-based technology for AI across all end markets," the company said.

For Q1, the company guided adjusted EPS of $0.32 to $0.36 on revenue of $875M to $925M, compared with estimates for EPS of $0.31 on revenue of $864.4M.