Latest ARM Earnings Report Q3 2025

Company Overview

Arm Holdings is a global leader in semiconductor and software design, specializing in energy-efficient processor architectures. Founded in 1990 and headquartered in Cambridge, UK, Arm is best known for developing the ARM architecture, which powers billions of devices worldwide, including smartphones, tablets, IoT devices, and data center infrastructure. Unlike traditional chip manufacturers, Arm designs and licenses its intellectual property (IP) to technology companies such as Apple, Qualcomm, and NVIDIA, enabling them to build custom processors optimized for performance and efficiency. With a strong focus on innovation, Arm continues to expand its influence in emerging fields like artificial intelligence, automotive computing, and cloud infrastructure, shaping the future of computing with cutting-edge technology solutions.

Latest Arm Earnings Comparison (Q3 2025)

Historical Arm Earnings Data

Arm Earnings Call Summary Q3 2025

Highlights

• Record Revenue Growth: Total revenue reached $983M, a 19% YoY increase, exceeding the high end of guidance.

• All-Time High Royalty Revenue: $580M in royalty revenue, up 23% YoY, driven by Armv9 adoption and CSS demand.

• AI & Data Center Expansion: Significant growth from AWS Graviton, Microsoft Cobalt, Google Axion, and NVIDIA Grace CPUs.

• Mobile & IoT Growth: New smartphones from OPPO & vivo feature Arm-based Dimensity 9400 chips, driving mobile AI adoption.

• Strategic AI Partnerships: Arm is at the center of AI advancements, with key roles in SoftBank/OpenAI's Cristal Intelligence and Stargate AI infrastructure.

• Raised Full-Year Guidance: FY25 revenue is now expected to exceed $4B, representing 24% YoY growth.

Risks

Despite strong financial performance, some risks remain:

1. Dependence on AI & Cloud Markets: A slowdown in AI-driven cloud investments could impact Arm’s long-term royalty growth.

2. Competition in Custom Silicon: With more companies developing custom AI chips, Arm must continue to differentiate Armv9 & CSS solutions.

3. Licensing Variability: Licensing revenue grew 14% YoY, but deal timing remains unpredictable, potentially affecting short-term revenue.

4. Legal & IP Challenges: The ongoing Qualcomm lawsuit could impact future revenue recognition if contract terms are challenged.

5. China Market Uncertainty: 25% of royalties still come from Arm China, posing potential geopolitical and regulatory risks.

Opportunities

Arm is positioned for long-term AI-driven expansion:

1. AI-First Computing Growth: Arm’s CSS and v9 technology are key to next-gen AI computing, securing cloud & data center market share.

2. AI-Driven Mobile Expansion: With flagship AI-powered smartphones launching on Armv9 chips, Arm is set to lead mobile AI computing.

3. Stargate AI Infrastructure Leadership: As a core technology partner, Arm gains significant exposure to $500B+ AI infrastructure investment.

4. Automotive & IoT Growth: AI integration in automotive, industrial, and IoT sectors will drive long-term revenue acceleration.

5. Chiplet & Custom Silicon Expansion: Arm’s CSA (Chiplet System Architecture) & Total Design programs are unlocking new semiconductor opportunities.

Outlook

• AI Leadership Expansion: Arm’s custom AI CPU solutions are gaining strong momentum, securing a leading role in AI computing.

• Sustained Royalty Growth: v9 adoption & CSS expansion will drive higher royalty rates, supporting long-term revenue acceleration.

• Enterprise AI Acceleration: Stargate & Cristal Intelligence projects are positioning Arm as the foundation of AI-driven enterprise solutions.

• U.S. Market Strength: Strong AI and data center investments from Amazon, Microsoft, NVIDIA, and Google will fuel sustained revenue growth.

• Continued Profitability & Expansion: With record Q3 revenue and a 24% YoY growth forecast, Arm is well-positioned for long-term AI leadership.

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.