Arm Holdings Reports Record Revenue in Q3 2025 Earnings Call

Quarterly revenue booms as Arm Holdings leads AI demand. The company reported significant revenue growth, positioning itself strongly in the tech landscape.

Date: 06-02-2025

AI Rating: 7

Strong Revenue Growth
Arm Holdings announced a record total revenue of $983 million for Q3 2025, marking a 19% year-on-year growth that surpassed expectations. Royalty revenue also saw a significant increase of 23%, reaching $580 million, driven largely by the adoption of Arm technologies across various sectors including AI.

Licensing Success
Licensing revenue rose 14% year on year to $403 million, indicating strong demand for Arm's advanced technology. The increase in long-term commitments from partners for new technologies demonstrates confidence in Arm's future growth prospects.

Forecasting Future Performance
Arm expects robust growth to continue, projecting Q4 revenue between $1.175 billion and $1.275 billion, representing a year-on-year growth of 32%. This enthusiasm is reflected in the full-year guidance, with expectations of around $4 billion in revenue, a 24% increase from the previous fiscal year.

Investments in R&D
Arm reported a rise in non-GAAP operating expenses, reflecting its strategy to invest heavily in R&D to sustain long-term growth. This approach aims to balance immediate profit with future revenue generation in the competitive tech landscape.

Stocks: ARM