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- **Record Q3 Performance**: $1.24 billion revenue (+26% YoY), driven by 27% YoY royalty growth and 25% YoY license revenue.
- **Data Center Dominance**: Neoverse CPUs deployed in 1 billion cores, with hyperscalers doubling core counts in Arm-based CPUs.
- **CSS Acceleration**: 21 CSS licenses signed, 5 customers shipping CSS chips, and top Android OEMs adopting CSS.
- **Risk Mitigation**: 20% smartphone unit decline would only reduce royalty growth by 2-4%, offset by triple-digit data center growth.
- **Long-Term Vision**: Data center to surpass mobile as largest business; CSS to reach 50% of royalties within 3 years.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 2026 revenue reached $1.24 billion, up 26% YoY, driven by 27% YoY growth in royalties ($737 million) and 25% YoY growth in license revenue ($505 million). Data center revenue is now double-digit and expected to surpass mobile as the largest business within 2-3 years.
- **Compute Subsystems (CSS) Momentum**: 21 CSS licenses signed across 12 companies, with 5 customers shipping CSS-based chips. Top 4 Android OEMs are shipping CSS-powered devices, creating a tailwind for royalties.
- **AI-Driven Data Center Expansion**: Neoverse CPUs have deployed over 1 billion cores, with hyperscalers like AWS, NVIDIA, and Microsoft increasing core counts in Arm-based CPUs (e.g., AWS Graviton5 with 192 cores, NVIDIA Vera with 88 cores).
- **Physical and Edge AI Growth**: Automotive market grew double digits YoY, while edge devices (smartphones, IoT) are seeing rapid adoption of Armv9 and CSS architectures.

**【CFO Financial Commentary】**
- **Non-GAAP Financials**: Q3 non-GAAP EPS of $0.43, up 14% YoY. Operating expenses rose 37% YoY to $716 million due to R&D investments in next-gen architectures and compute subsystems.
- **Licensing Strength**: ACV grew 28% YoY, with 2 new CSS licenses and 2 Arm Total Access (ATA) agreements. SoftBank contributed $200 million in licensing revenue, reflecting its AI compute strategy.
- **Q4 Guidance**: Revenue of $1.47 billion (+18% YoY), with royalties up low teens YoY and licensing up high teens YoY. Non-GAAP EPS expected at $0.58.

**【Q&A Highlights】**
- **Memory Shortages Impact**: A 20% smartphone unit decline could reduce royalty growth by 2-4%, but data center growth (triple-digit YoY) offsets this risk. CSS adoption in premium devices mitigates downside.
- **SoftBank Shareholder Intent**: SoftBank CEO Masa has no plans to sell Arm shares, emphasizing long-term confidence in Arm's AI platform.
- **CSS Penetration**: CSS now represents over 10% of royalty revenue and could reach 50% within 2-3 years as customers prioritize time-to-market.
- **AI Agent-Based Workloads**: Increasing CPU core counts in data centers (e.g., AWS Graviton5, NVIDIA Vera) benefit Arm's performance-per-watt advantage.
- **Future Growth Drivers**: Physical AI (autonomous vehicles, robotics) and edge AI (smartphones, IoT) are emerging growth areas with Arm's power-efficient architectures.

Arm Holdings plc (ARM) Q3 2026 Earnings Call Transcript

- **Record Q2 Growth**: $1.14 billion revenue (+34% YoY), driven by 21% YoY royalty growth and 56% YoY licensing surge.
- **AI Compute Dominance**: Neoverse data center royalties double YoY; Google's Arm-based Axion chip outperforms x86 by 65%.
- **Strategic Expansion**: 5 new Stargate sites, 3 new CSS licenses, and $178 million SoftBank-related revenue highlight ecosystem expansion.
- **Future Outlook**: Q3 guidance for $1.225 billion revenue (+25% YoY), with accelerating R&D investment in AI and edge computing.
- **China Momentum**: 22% of Q2 revenue from China, fueled by large license deals and strong smartphone/automotive adoption.

**【CEO Summary Section】**
- Q2 revenue reached $1.14 billion, up 34% year-over-year, with record royalty revenue of $620 million (+21% YoY) and licensing revenue of $515 million (+56% YoY).
- Neoverse data center royalties doubled YoY, driven by hyperscale partners like Google (Axion chip delivers 65% better price-performance and 60% less energy use).
- 5 new Stargate sites added, expanding visibility into AI capacity; 3 new CSS licenses signed in smartphones, tablets, and data centers, bringing total to 19 across 11 companies.
- Lumex CSS launched, enabling real-time AI on mobile devices; OPPO and vivo flagships expected to ship later in the year.
- Strategic partnership with Meta to scale AI efficiency across all compute layers.
- Automotive AI5 chip delivers 40x faster performance for Tesla's next-gen vehicles.
- Developer ecosystem grows to 22 million, representing 80% of global developers.

**【CFO Financial Commentary】**
- Non-GAAP EPS of $0.39, $0.06 above midpoint of guidance, driven by higher revenue and lower OpEx.
- Operating expenses $648 million (+31% YoY), with R&D investment accelerating for CSS, chiplets, and SoCs.
- ACV grew 28% YoY, well above long-term expectations.
- Q3 guidance: $1.225 billion revenue (+25% YoY), royalties +20% YoY, licensing +25-30% YoY.
- Related-party revenue with SoftBank increased by $52 million QoQ to $178 million, reflecting design services and IP licensing.

**【Q&A Key Highlights】**
- **AI & Data Center Growth**: Arm's 50% efficiency advantage over competitors is driving hyperscale adoption; all new announced compute capacity is Arm-based.
- **Stargate & SoftBank Collaboration**: $500 billion Stargate project accelerates infrastructure build-out; Arm's role in power-efficient compute is central to SoftBank's ecosystem.
- **Lumex CSS Success**: Early licensee already generating royalties, with 40% AI performance improvement for Samsung Exynos.
- **China Market Strength**: China contributed 22% of Q2 revenue, with large license deals and strong royalty growth.
- **Future Product Strategy**: Exploring chiplets and SoCs; potential announcements when tape-out, samples, and customer orders are confirmed.
- **Networking Penetration**: Arm-based solutions in DPU, switches (e.g., Mellanox BlueField), and routers now account for ~15-20% of royalty revenue, up from 10% last fiscal year.

Arm Holdings plc (ARM) Q2 2026 Earnings Call Transcript

- **Record Q1 Revenue**: $1.05 billion, with 25% YoY royalty growth to $585 million.
- **Neoverse Dominance**: Hyperscaler share to reach 50% in FY26, up from ~18% last year.
- **CSS Breakthrough**: Next-gen CSS platforms achieve >10% royalty rates, doubling prior generation.
- **China Growth**: China revenue at 21% of total, up from 14% a year ago.
- **FX Impact**: $0.01/Q EPS headwind expected through FY26.

**【CEO Summary Section】**
- Q1 FY26 revenue reached $1.05 billion, the second-highest quarterly revenue in company history, driven by 25% YoY growth in royalty revenue to $585 million.
- Arm Neoverse CPUs now power 70,000 enterprises, with hyperscaler market share expected to reach nearly 50% in FY26, up from ~18% last year.
- Compute Subsystems (CSS) adoption accelerated, with 3 new CSS licenses signed this quarter, including 2 for data centers and 1 for PCs, more than doubling the total from a year ago.
- Zena CSS, optimized for automotive AI workloads, secured its first customer, and Ethos-U85 NPU is being integrated into premium smartphones from Apple, Samsung, and MediaTek.
- Remaining Performance Obligations (RPO) remained flat sequentially, reflecting strong licensing pipeline.

**【CFO Financial Commentary】**
- Total revenue of $1.05 billion exceeded guidance midpoint, with non-GAAP EPS of $0.35 (vs. $0.34 expected) despite $0.01 FX headwind.
- Annualized Contract Value (ACV) grew 28% YoY, driven by a multigenerational GPU deal with a leading smartphone OEM and expanded SoftBank licensing.
- R&D expenses of $619 million reflect investments in next-gen technologies, supporting long-term growth.
- Q2 FY26 guidance: Revenue $1.01-1.11 billion (25% YoY growth at midpoint), non-GAAP EPS $0.29-0.37.
- FX impact expected to remain ~$0.01 per quarter through FY26.

**【Q&A Key Highlights】**
- **ASICs & Full-End Solutions**: CEO Rene Haas confirmed exploring chiplets and full-end solutions, leveraging Arm's ecosystem and R&D expertise, with CSS royalty rates exceeding 10% for next-gen platforms.
- **Royalty Growth**: CFO Jason Child noted smartphone growth outpaced market by an order of magnitude, but Q1 royalties were at the lower end of guidance due to slower-than-expected smartphone demand.
- **Neoverse Share**: 50% hyperscaler share target driven by AI workloads moving to Grace Blackwell (25x more energy efficient than x86) and conventional data center growth.
- **China Business**: China contributed 21% of Q1 revenue, up from 14% a year ago, with momentum aligned with global trends.
- **FX Hedging**: ~2/3 of OpEx hedged, with unhedged portion contributing $0.01/Q EPS impact.
- **CSS Royalty Rates**: Next-gen CSS platforms deliver >10% royalty rates, doubling the previous generation's 5% rate.


Arm Holdings Plc (ARM) Q1 2026 Earnings Call Transcript

- **Record Q4 & FY25 Results**: $1.24B Q4 revenue, $4B+ FY25 total, 18% royalty growth
- **AI-Driven Growth**: 50% hyperscaler server chips Arm-based, 30% smartphone royalty growth vs 2% shipment
- **Custom Silicon Momentum**: 13 CSS customers, $634M licensing revenue (+53% YoY)
- ** Automotive Expansion**: First automotive CSS license with global EV leader
- **AI Ecosystem Leadership**: 8B Kleidi AI installs, Stargate project with OpenAI/NVIDIA
- **FY26 Outlook**: 12% Q1 revenue growth, 25-30% royalty growth, no full-year guidance due to macro uncertainty

**【CEO Summary Section】**
- Q4 revenue reached a record $1.24 billion, with full-year revenue topping $4 billion and royalty revenue surpassing $2 billion for the first time.
- Armv9 adoption rate in smartphones jumped 30% YoY, outpacing the 2% global smartphone shipment growth.
- 50% of new hyperscaler server chips are expected to be Arm-based in 2025, driven by Google’s Armv9 deployment and AWS Graviton adoption.
- Custom silicon partnerships (e.g., NVIDIA Grace Blackwell) are driving both license and royalty growth, with over 50% of new AWS CPU capacity powered by Arm.
- Automotive CSS license signed with a global EV leader, enabling custom silicon for next-gen vehicles.
- Kleidi AI software layer reached 8 billion cumulative installs across Arm-based devices, solidifying Arm’s AI ecosystem leadership.

**【CFO Financial Commentary】**
- Q4 GAAP revenue: $1.24 billion (upper end of guidance range)
- Royalty revenue: $607 million (+18% YoY), exceeding expectations due to flagship smartphone launches
- Licensing revenue: $634 million (+53% YoY), driven by Armv9 and AI partnerships
- ACV growth: 15% YoY (high end of low-teens run rate)
- Non-GAAP EPS: $0.55 (high end of $0.48-$0.56 guidance)
- Q1 2026 guidance: Revenue $1.0-$1.1 billion (+12% YoY), 25-30% royalty growth
- Tariff impact: 10-20% of royalty revenue exposed to US tariffs, but minimal direct impact on licensing

**【Q&A Key Highlights】**
- **Tariff Impact**: 10-20% of royalty revenue from US shipments, but no direct impact on licensing
- **Armv9 Adoption**: 30% of CSS now Armv9-based, up from 25% prior quarters
- **CSS Growth**: 13 active CSS customers (6 mobile, 6 infrastructure, 1 automotive)
- **AI Chiplet Strategy**: AMBA bus standardization enabling chiplet-based custom silicon
- **Malaysian Gov Deal**: $200M+ 10-year AI ecosystem partnership for startups
- **Grace Blackwell Transition**: Vera successor chip in development, maintaining Arm CPU leadership

Arm Holdings plc American Depositary Shares (ARM)-7 May 25-2025 Q4 Earnings call transcript

- **All-Time Highs**: Q3 revenue ($983M) and royalty ($580M) records, driven by 23% YoY CSS adoption and AI demand.
- **Strategic Wins**: Arm's CSS and Grace CPUs selected for $100B U.S. AI infrastructure (Stargate) and NVIDIA's smallest AI supercomputer (GB10).
- **Future Growth**: FY25 guidance for $4B revenue (+24% YoY), with royalty growth in high teens and license +30% YoY.
- **AI Everywhere**: KleidiAI libraries enable AI workloads across 20M+ developers, from earbuds to data centers.
- **R&D Investment**: Q4 R&D spending to rise to $590M, supporting next-gen technologies for long-term growth.

**【CEO Summary Section】**
- **Record Revenues**: Total revenue reached $983 million, up 19% YoY, with royalty revenue at $580 million, a 23% YoY increase. Both are all-time highs.
- **AI and CSS Growth**: Strong adoption of Armv9 and Compute Subsystems (CSS) driven by flagship smartphones (e.g., MediaTek Dimensity 9400 in OPPO/vivo devices) and data center chips (AWS Graviton, Microsoft Cobalt, NVIDIA Grace).
- **Strategic Projects**: Arm is the CPU of choice for Stargate AI infrastructure and Cristal intelligence, positioning for long-term AI compute demand.
- **Developer Ecosystem**: Over 20 million developers, with KleidiAI libraries enabling easy optimization for AI workloads across endpoints.

**【CFO Financial Commentary】**
- **Q3 Financials**: Total revenue $983M (vs. $826M YoY), royalty $580M (vs. $475M YoY), licensing $403M (vs. $354M YoY). ACV up 9% YoY.
- **Guidance for Q4 FY25**: Revenue $1.175B-$1.275B (32% YoY midpoint), non-GAAP EPS $0.48-$0.56. Full year FY25 revenue ~$4B (24% YoY), royalty growth in high teens, license +30% YoY.
- **Costs and Profit**: Q3 non-GAAP operating expenses $522M (up 21% YoY), operating profit $442M. Q4 R&D spending expected to rise to $590M.

**【Q&A Key Highlights】**
- **Stargate and Cristal Intelligence**: Arm's CSS and Grace CPUs central to $100B+ U.S. AI infrastructure and agentic AI agents across devices.
- **v9 Adoption**: 25% of royalty revenue, expected to reach 60-70% long-term. Q3 v9 growth flat as v8 smartphones outperformed expectations.
- **CSS Momentum**: 12+ CSS deals, 50-50 split between data center and client (e.g., NVIDIA Grace CPU with 20 Arm cores).
- **Related Party Revenue**: Arm China contributes ~25% of royalties, expected to decline to mid-teens over time.
- **AWS Graviton Share**: 50% of new EC2 CPU capacity over 2 years, 90% of top 1,000 customers using Graviton.
- **Litigation Impact**: No financial impact from Qualcomm lawsuit; royalties assumed at prior rates.


Actual	0.29	0.36	0.4	0.3	0.39	0.55	0.35	0.22	0.21
Forecast	0.2473	0.3011	0.3418	0.2569	0.342	0.5245	0.3491	0.3287	0.4091
Surprise	+17.27%	+19.56%	+17.03%	+16.78%	+14.04%	+4.86%	+0.26%	-33.07%	-48.67%

Actual	824.00M	928.00M	939.00M	844.00M	983.00M	1.24B	1.05B	1.14B	1.24B
Forecast	762.50M	865.94M	905.53M	810.03M	949.27M	1.23B	1.05B	1.06B	1.23B
Surprise	+8.07%	+7.17%	+3.70%	+4.19%	+3.55%	+0.54%	-0.17%	+7.01%	+1.23%

ARM

ARM fundamentals

ARM Q3 2026 Earnings

Earnings Call

You can ask Aime

ARM

ARM fundamentals

ARM Q3 2026 Earnings

Earnings Call

ARM Earnings Call Summary for Q3/20265:00 PM on Feb 4, 2026

ARM Earnings Call Summary for Q2/20265:00 PM on Nov 5, 2025

ARM Earnings Call Summary for Q1/20265:00 PM on Jul 30, 2025

ARM Earnings Call Summary for Q4/20255:00 PM on May 7, 2025

ARM Earnings Call Summary for Q3/20255:00 PM on Feb 5, 2025

You can ask Aime