𝗔𝗿𝗺 𝗤𝟯’𝟮𝟲: 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗮𝘁 𝗛𝗶𝗴𝗵 𝗘𝗻𝗱 𝗼𝗳 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲; 𝗟𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 𝗮𝗻𝗱 𝗢𝘁𝗵𝗲𝗿 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗲𝘄 𝟱𝟬% 𝗬𝗼𝗬
@Arm reported Q3 revenue of $1.4 billion, at the high end of its guidance, growing 27% YoY and marking the fifth straight quarter of revenue growth above 20%, supported by continued YoY growth in both Licensing and Royalty revenues.
𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀:
• License and Other Revenue grew by 50% YoY, driven by continued strong licensing agreements for Arm’s IP. Contributions from licensing agreements signed earlier also supported growth.
• Royalty revenue grew 8% YoY, driven by higher Armv9 and Arm Compute Subsystems (CSS) adoption and expanding Arm-based data center deployments, offsetting a weaker smartphone market.
• Data center and AI infrastructure emerged as Arm’s fastest-growing business, with data center royalty revenue more than doubling YoY.
• Physical AI royalty revenue grew by 50% YoY, driven by increasing adoption of Arm’s IP in automotive and robotics platforms.
• Arm’s CY Q3 2026 revenue is expected to be $1.49 billion-$1.59 billion (20%-28% YoY growth). Royalty revenues are projected to grow by a low single-digit % YoY next quarter, whereas Licensing and Other Revenues are projected to grow by 50% YoY
𝗔𝗰𝗰𝗲𝘀𝘀 𝗼𝘂𝗿 𝗚𝗹𝗼𝗯𝗮𝗹 𝗦𝗺𝗮𝗿𝘁𝗽𝗵𝗼𝗻𝗲 𝗦𝗼𝗖 𝗦𝗵𝗶𝗽𝗺𝗲𝗻𝘁𝘀 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗯𝘆 𝗩𝗲𝗻𝗱𝗼𝗿 𝗵𝗲𝗿𝗲:
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Earnings# $ARM