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Mar 31
ARM Q4 2025 Earnings Report
Arm reported record Q4 revenue and royalty income, surpassing the $1B mark for the first time.
Key Takeaways
Arm delivered strong Q4 results with total revenue of $1.241 billion and record royalty and license revenues, driven by increasing deployment of Armv9 chips and AI demand across sectors.
Total revenue reached a record $1.241 billion, up 34% YoY.
Royalty revenue rose to $607 million, reflecting Armv9 and CSS chip demand.
Adjusted EPS climbed to $0.55 from $0.36 YoY.
AI growth across cloud and edge boosted custom silicon and royalty streams.
ARM
ARM
ARM Revenue by Segment
Revenue by Segment
Royalty Revenue
CapyFin.comLicense & other Revenue
CapyFin.com Forward Guidance
Arm expects lower revenue and EPS in Q1 FYE26 but continued strong demand in AI and custom silicon will support long-term growth.
Positive Outlook
- Continued adoption of Armv9 architecture.
- Strong pipeline of CSS licenses across verticals.
- AI chip demand from hyperscalers remains robust.
- Record engineering headcount for innovation.
- CSS for Automotive licensing gains traction.
Challenges Ahead
- Revenue guidance for Q1 FYE26 reduced to $1.0–$1.1 billion.
- EPS guidance lowered to $0.30–$0.38 for Q1 FYE26.
- RPO declined 4% QoQ, reflecting contract timing.
- Cash flow from operations decreased YoY.
- Free cash flow dropped 74% YoY for the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income