Arm Holdings plc American (ARM) Q4 2025 Earnings Report

In Q4 2025, Arm Holdings plc achieved its first-ever revenue exceeding $1 billion in a single quarter, recording total revenues of $1.24 billion, reflecting a robust 33.73% year-on-year growth. Revenue from royalties reached $607 million, up 18% year-on-year, showcasing the increasing demand for Arm's power-efficient AI compute technology across multiple sectors, including data centers, smartphones, automotive, and IoT. Management emphasized the strength of their diversification strategy, with licensing revenue surging 50% year-on-year to $634 million, underpinned by new partnerships, including a significant multi-year AI agreement with the Malaysian government. Despite macroeconomic uncertainties, Arm's performance indicates strong fundamentals and a positive outlook for sustained growth.