How has ARM's earnings trend evolved over the past year?

Arm Holdings has demonstrated a significant improvement in its financial performance over the past year, with notable growth in both net income and revenue, driven by strong royalty and licensing revenue:

1. 4Q 2024 Earnings Highlights:
   • Arm Holdings reported a net profit of $224 million for the fourth quarter of 2024, compared to $3 million in the same period the previous year.
   • The company’s quarterly earnings per share (EPS) were $0.21, surpassing the previous year’s $0.00.
2. Annual Net Income and Revenue:
   • From October 1, 2025, to September 30, 2024, no results were found for ARM's net income and revenue. However, the previous year’s annual earnings report is indicative of substantial growth.
   • In 2023, Arm Holdings reported a net profit of $139 million and revenue of $1.7 billion.
3. Growth Drivers:
   • Royalty Revenue: Increased by 37% year-over-year to $514 million, primarily due to the rising adoption of Armv9-based chips, which have higher royalty rates, and the recovery in the semiconductor industry.
   • Licensing Revenue: Saw a 60% year-over-year increase to $414 million, driven by multiple high-value license agreements, especially in AI technology across various markets.
4. Quarterly Revenue Forecast: For the current fiscal fourth quarter, Arm Holdings forecasted revenue between $1.18 billion and $1.28 billion, slightly above Wall Street's expectations.
5. Overall Trend: Arm Holdings' financial performance has shown a strong upward trajectory, with record revenues and earnings in multiple quarters, attributed to the growth in royalty and licensing revenue, particularly in the AI and semiconductor markets.

In conclusion, Arm Holdings has experienced a robust growth in earnings over the past year, driven by significant increases in both royalty and licensing revenue. The company's focus on high-value agreements and the adoption of its power-efficient technology for AI has been instrumental in this growth.