What drove ARM's earnings beat in Q1 2025?

ARM's earnings beat in Q1 2025 was primarily driven by strong performance in its royalty segment, which surged by 23% to $580 million. This growth was fueled by the increasing adoption of Arm-based chips in data centers, mobile devices, and AI applications. The company's licensing and other revenue also contributed to the earnings beat, rising by 14% to $403 million. The adoption of Arm's v9 technology played a significant role in the growth of royalties, although the percentage of royalties tied to v9 remained constant at 25% for the third consecutive quarter. Overall, ARM's strategic focus on intellectual property licensing and technology partnerships has positioned it well for growth in the semiconductor industry.