ARM
Arm Holdings plc American
Q1 2026 Report
Arm Holdings plc (ARM) Q1 2026 Financial Results: Strong Growth Driven by AI Demand...
Read full report
Executive Summary
In Q3 2025, Arm Holdings plc reported a record total revenue of $983 million, up 19% year-on-year, exceeding the upper limit of prior guidance, primarily fueled by strong demand in the AI sector. Notably, royalty revenue reached $580 million, a 23% increase, reflecting heightened adoption of the Armv9 architecture and Cortex-A processors, as well as growth in custom silicon deployments in data centers. The company's strategic focus on research and development remains crucial, with R&D spending at its highest level, indicating a commitment to sustaining long-term growth. Management anticipates continued momentum, projecting Q4 revenues to fall between $1.175 billion and $1.275 billion, representing substantial year-on-year growth.
Key Performance Indicators
Revenue
983.00M
QoQ: 16.47% | YoY:19.30%
Gross Profit
955.00M
97.15% margin
QoQ: 17.61% | YoY:21.19%
Operating Income
175.00M
QoQ: 173.44% | YoY:30.60%
Net Income
252.00M
QoQ: 135.51% | YoY:189.66%
EPS
0.24
QoQ: 140.00% | YoY:183.35%
Revenue Trend
Margin Analysis
Key Insights
- Q3 2025 Revenue: $983 million (+19.3% YoY, +16.5% QoQ) #### Profitability
- Gross Profit: $955 million (Gross Margin: 97.2%)
- Operating Income: $175 million (Operating Margin: 17.8%, +30.6% YoY)
- Net Income: $252 million (Net Margin: 25.6%, +189.7% YoY)
- EPS (Diluted): $0.24 #### Cash Flow