Arm Holdings has reported record revenue in its fiscal third quarter, driven by strong growth in royalty and license revenues. The company’s total revenue reached $983 million, a 19% increase from the same period last year.
Royalty revenue accounted for the largest share, with $580 million in revenue, up 23% year-over-year. This is largely due to the adoption of Armv9 and the expansion of chips based on Arm Compute Subsystems (CSS). IoT improvements and increased use of Arm-based chips in datacenters have also contributed to this growth.
License and other revenue came in at $403 million, a 14% increase from last year’s period. This is largely attributed to multiple high-value license agreements signed during the quarter.
Arm’s non-GAAP operating income was $442 million, resulting in a 45% non-GAAP operating margin. Earnings per share also reached $0.39.
The company expects Arm CSS to become the product of choice for many partners, with strong demand driven by complex, customized silicon requirements and reduced development costs. Major automakers such as BMW, Honda, Rivian, Nuro, and Mercedes rely on Arm’s platform for automated driving, parking, advanced autonomous capabilities, and feature-rich cockpit experiences.
At CES 2025, the focus was on the Arm-based NVIDIA DRIVE AGX Thor, a centralized compute platform for AI and autonomous driving workloads. This platform is built on Arm’s server-class Neoverse Automotive Enhanced (AE) CPU and enables software developers to develop applications in the cloud and run them seamlessly in the car.
The emergence of new Arm-based AI hardware, such as NVIDIA’s Project DIGITS and Samsung’s Galaxy S25, is unlocking edge AI use-cases across consumer technologies, automotive, and industrial IoT. These devices can process data without relying on the cloud and are untethered from power grids.
Arm is also a key technology supplier to the Stargate Project, alongside Microsoft, NVIDIA, OpenAI, and Oracle. The company has partnered with OpenAI and SoftBank Group on “Cristal intelligence,” enabling AI agents that solve complex problems for knowledge work.
Source: https://newsroom.arm.com/news/arm-q3-fye25-results