ARM HOLDINGS PLC /UK (ARM) Company Report

Arm Holdings achieved a record third quarter for 2026, with total revenue increasing 26% year-on-year to $1.24 billion and non-GAAP EPS reaching $0.43.
Royalty revenue grew 27% to a record $737 million, primarily driven by higher royalty rates in smartphones and triple-digit year-on-year growth in data center royalties, while license revenue rose 25% to $505 million.
For Q4 2026, Arm expects revenue of $1.47 billion ± $50 million and non-GAAP EPS of $0.58 ± $0.04.
The company's Compute Subsystems (CSS) are showing strong momentum, contributing well into the teens of the royalty mix and projected to reach upwards of 50% in the next two to three years.
Growth in the Cloud AI business is currently more than compensating for potential demand destruction risks in consumer electronics.

4 hours ago

Transcript

Arm Holdings Reports Record Q3 2026 Revenue and EPS

ARM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Arm Holdings reported a strong Q3 2026, with revenue growing 26% year-over-year to $1.24 billion and non-GAAP EPS reaching $0.43.
Royalty revenue increased 27% to a record $737 million, driven by strength in AI and general-purpose data centers, with data center royalty revenue growing over 100% year-over-year.
License revenue was $505 million, up 25% year-over-year, with $200 million contributed by SoftBank.
The company provided Q4 2026 revenue guidance of $1.47 billion plus or minus $50 million, representing approximately 18% year-over-year growth at the midpoint.
Arm expects its data center business to become its largest business in a few years, with its share among top hyperscalers projected to reach 50%. Compute Subsystems (CSS) are also gaining traction, with their contribution to royalty mix expected to grow from teens to potentially 50% over the next 2-3 years.

5 hours ago

Transcript

ARM Announces Record Q3 2026 Results and Strong Q4 2026 Guidance

ARM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Arm reported a record Q3 2026 with total revenue of $1.24 billion, a 26% year-over-year increase, and non-GAAP EPS of $0.43. For Q4 2026, revenue is guided to approximately $1.47 billion (midpoint) with non-GAAP EPS of $0.58 ± $0.04.
Royalty revenue grew 27% to $737 million, significantly boosted by data center royalty revenue increasing over 100% year-over-year, with the data center business projected to become Arm's largest.
Compute Subsystems (CSS) momentum continues, with 21 licenses now across 12 companies, and CSS is anticipated to comprise up to 50% of the royalty mix within the next two to three years.
Non-GAAP operating expenses rose 37% year-over-year to $716 million due to R&D investments, but the company anticipates full-year royalties to grow north of 20% and maintains a 20% growth rate as reasonable for 2027.

5 hours ago

Transcript

Arm Holdings plc Reports Strong Q3 2025 Revenue Growth and Ampere Investment Realization

ARM

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Arm Holdings plc reported total revenue of $1,242 million for the three months ended December 31, 2025, representing a 26% increase compared to the same period in the prior year, with net income of $223 million.
For the nine months ended December 31, 2025, total revenue grew 24% to $3,430 million, and net income was $591 million.
The company generated $1,264 million in net cash from operating activities for the nine months ended December 31, 2025, and held $2,807 million in cash and cash equivalents as of December 31, 2025.
Arm received $143.4 million for its equity interest in Ampere and $39.3 million from the settlement of a convertible promissory note in December 2025, following SoftBank Group's acquisition of Ampere.
The document also discusses recent U.S. export control regulations, including revised license review policies for AI chips to China and new tariffs, which could impact the semiconductor industry.

7 hours ago

6-K

Arm Holdings plc Reports Strong Q3 FYE26 Results and Positive Q4 Guidance

ARM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Arm Holdings plc reported record third-quarter revenue of $1.24 billion, a 26% year-over-year increase, and non-GAAP diluted EPS of $0.43 for the fiscal year ending 2026.
The company issued strong Q4 FYE26 guidance, forecasting revenue of $1.470 billion +/- $50 million and non-GAAP fully diluted EPS of $0.58 +/- $0.04.
Royalty revenue grew 27% year-over-year to $737 million, driven by increased adoption of Arm technology in AI, data center, smartphones, physical AI, and edge AI markets.
Demand for Arm Compute Subsystems (CSS) is robust, with 21 CSS licenses across 12 companies and five customers shipping CSS-based chips, contributing to royalty growth.

7 hours ago

6-K

SpacemiT Launches K3 AI CPU

ARM

Product Launch

New Projects/Investments

SpacemiT, a Chinese RISC-V chip company, launched its new K3 AI CPU on January 29, 2026, designed to combine the open RISC-V instruction set with general-purpose and AI computing capabilities for intelligent terminals and edge computing.
The K3 chip integrates eight high-performance X100 RISC-V CPU cores with a maximum frequency of 2.4GHz, delivering up to 60 TOPS of AI compute and supporting up to 32GB of LPDDR5 memory.
SpacemiT's previous-generation K1 chip achieved over 150,000 unit shipments, and the K3 has already received orders, with initial deliveries planned from the end of April 2026.
The company aims to establish differentiated advantages in the mid-range computing segment by focusing on lower power consumption, higher integration, and better cost efficiency, rather than directly competing with high-end server CPUs or GPUs.

6 days ago

Press Release

Arm Holdings Reports Strong Q2 Results and Optimistic Q3 Forecast Driven by AI Demand

ARM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Arm Holdings reported Q2 revenue of $1.14 billion, a 34% year-over-year increase, and issued an optimistic Q3 forecast of approximately $1.23 billion, surpassing analyst expectations.
The company's growth is primarily fueled by robust demand in artificial intelligence (AI) and data center markets, leading to increased royalties from chips using its designs and higher licensing revenue.
Arm is strategically expanding its role by designing and developing its own chips through 'Compute Subsystems' (CSS), with its Neoverse platform revenue doubling and projected to achieve nearly 50% of top-tier data center deployments by 2025.
Arm's business diversification includes contributions from cloud and networking (10%), automotive (7%), and IoT/embedded systems (18%), though smartphones still account for 45% of royalties.

Nov 6, 2025, 10:07 AM

Bloomberg

Arm Reports Strong Q2 FY26 Results and Provides Q3 FY26 Guidance

ARM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Arm reported strong Q2 FY26 results with revenue of $1.14 billion, up 34% year-on-year, marking its third consecutive billion-dollar quarter.
Royalty revenue reached a record $620 million, increasing 21% year-on-year, primarily driven by growth in data center, smartphones, automotive, and IoT, with data center Neoverse royalties more than doubling.
Licensing revenue rose 56% to $515 million, fueled by demand for next-generation architectures and strategic engagements, including an expanded agreement with SoftBank.
Non-GAAP EPS for Q2 FY26 was $0.39, exceeding the high end of guidance.
For Q3 FY26, Arm projects revenue of $1.225 billion (midpoint), an approximate 25% year-on-year growth, and non-GAAP EPS of $0.41 (midpoint).

Nov 5, 2025, 10:00 PM

Transcript

Arm Reports Strong Q2 FY2026 Results with Significant AI-Driven Growth

ARM

Earnings

Guidance Update

New Projects/Investments

Arm reported robust Q2 FY2026 financial results, with revenue reaching $1.14 billion, a 34% year-on-year increase, and non-GAAP EPS of $0.39. Related party revenue from SoftBank increased to $178 million in Q2 2026.
Both royalty and licensing revenues demonstrated strong growth; royalty revenue hit a record $620 million (up 21% year-on-year) driven by all major markets, while licensing revenue surged 56% to $515 million.
The company emphasized its expanding role in AI, announcing a strategic partnership with Meta, and highlighting that its Neoverse compute platform has surpassed 1 billion CPUs deployed. This includes significant adoption by hyperscalers like Google, whose Arm-based Axion chip offers 65% better price performance and 60% less energy.
For Q3 FY2026, Arm projects continued growth with revenue of $1.225 billion (midpoint, representing 25% year-on-year growth) and non-GAAP EPS of $0.41.

Nov 5, 2025, 10:00 PM

Transcript

Arm Reports Strong Q2 2026 Results Driven by AI Demand and Provides Q3 2026 Guidance

ARM

Earnings

Guidance Update

New Projects/Investments

Arm reported Q2 2026 revenue of $1.14 billion, a 34% year-on-year increase, with record royalty revenue of $620 million (up 21%) and licensing revenue up 56% to $515 million. Non-GAAP EPS was $0.39, exceeding guidance.
For Q3 2026, the company expects revenue of $1.225 billion \u00b1$50 million (midpoint up 25% year-on-year) and non-GAAP EPS of $0.41 \u00b1$0.04.
Growth was significantly driven by accelerating demand for AI compute, with data center Neoverse royalties more than doubling year-on-year and the Neoverse Compute platform surpassing 1 billion CPUs deployed.
Strategic initiatives include a partnership with Meta for AI efficiency, signing three new CSS licenses (totaling 19 across 11 companies), and the planned acquisition of DreamBig Semiconductor for data center networking.
Related party revenue from SoftBank contributed $178 million in Q2 2026, an increase of $52 million from the prior quarter, primarily from licenses and design services.