Arm has reported a 19% year-over-year increase in revenue for its latest quarter, reaching $983 million, driven by record royalty earnings and continued strength in license revenue.
The company has credited this growth to the increasing adoption of its Armv9 architecture, rising demand for its Compute Subsystems (CSS), and expanding presence in data centres and the Internet of Things (IoT) sector.
Key financial highlights:
- Revenue: $983 million, up 19% year-over-year
- Royalty revenue: $580 million, up 23% year-over-year, attributed to Armv9 adoption and growth in Arm-based chips across data centres and IoT
- License and other revenue: $403 million, up 14% year-over-year, due to multiple high-value license agreements
- Non-GAAP operating income: $442 million, with a 45% non-GAAP operating margin
- Non-GAAP earnings per share: $0.39
Arm Compute Subsystems (CSS) gains momentum
Arm expects its CSS to become a preferred choice for partners designing next-generation chips, citing strong demand for increasingly complex and customised silicon. CSS aims to reduce development costs and time-to-market for companies building specialised workloads.
Automotive expansion and AI-powered innovation
Arm’s energy-efficient platforms continue to play a critical role in the automotive industry, powering advanced driving and cockpit experiences for major manufacturers such as BMW, Honda, Rivian, Nuro, and Mercedes. At CES 2025, Arm highlighted the NVIDIA DRIVE AGX Thor platform, the first centralised compute solution for AI-driven and autonomous vehicles. The platform is built on Arm’s Neoverse Automotive Enhanced (AE) CPU, enabling seamless development and deployment of AI applications across Cloud and vehicle environments.
AI at the Edge and Cloud-connected innovations
Arm is seeing growing demand for AI hardware that operates independently of the Cloud, enabling Edge AI applications in consumer technology, automotive, and industrial IoT. Recent developments include:
- NVIDIA Project DIGITS: a supercomputer featuring Arm’s Grace CPU with Cortex-X and Cortex-A cores, combined with NVIDIA’s Blackwell GPU
- Samsung Galaxy S25: the first smartphone to integrate multimodal AI agents using Arm-based technology
- OPPO and vivo flagship AI smartphones: featuring MediaTek’s Dimensity 9400 SoC, powered by Arm
Strategic AI partnerships and Cloud expansion
Arm’s role in AI infrastructure has been further reinforced through its participation in the Stargate Project, alongside Microsoft, NVIDIA, OpenAI, and Oracle. This initiative represents one of the most significant AI infrastructure investments to date. Additionally, Arm is working with OpenAI and SoftBank Group on the Cristal Intelligence initiative, which aims to enhance AI-driven knowledge work. The project leverages Arm’s compute platform, powered by KleidiAI libraries, to meet the growing computational demands of AI agents across Cloud and Edge environments.
With its continued expansion into AI, automotive, and IoT, Arm remains a central player in the evolving semiconductor landscape, positioning itself at the heart of next-generation computing innovations.
