Arm Revenue Jumps 39 Percent to $939 Million

Arm Holdings announced that it earned a net income of $223 million on revenues of $939 million in the quarter ending June 30. Those figures represent year-over-year (YOY) gains of 112 percent and 39 percent, respectively.

“In Q1 [FY25], we delivered record revenues and exceeded the high-end of our guidance range for both revenue and EPS [earnings per share],” an Arm letter to shareholders reads. “License revenue hit a record level as the proliferation of AI everywhere is driving more companies to make broad and long-term commitments to use Arm’s power-efficient technology in their future products. Year-over-year growth in royalty revenue was also strong, as rising adoption of Armv9 technology is lifting royalty revenue per device.”

These results represent the fourth consecutive quarter in which Arm delivered record financial results, and the firm easily beat expectations. But because Arm declined to revise its annual forecast, its stock price tumbled 11.7 percent last night. Welcome to Wall Street, Arm.

Arm’s licensing business delivered $472 million in revenues in the quarter, up 72 percent YOY. And its royalty business provided the remaining $467 million, up 17 percent YOY. Gross margins were 96.5 percent, up a bit from the 95.4 percent margins it recorded in the year-ago quarter.

Arm says that 25 percent of its royalty revenue is now tied to its most recent Armv9 designs, with royalty revenues from mobile up 50 percent YOY. The company expects the migration of AI from the cloud to edge devices—PCs, smartphones, and tablets, primarily—to drive Armv9 demand even further. And here’s an odd bit: Despite its ongoing legal dispute with Qualcomm, Arm pointed out the Copilot+ PC launch as a plus, while hilariously ignoring Qualcomm’s contribution.

“During the quarter, Microsoft announced its first generation of Copilot+ PCs on Arm with double the battery life of the closest PC competitor and on par with its Arm-based macOS counterpart,” the letter reads. “Every major software application and developer tool now runs natively on Windows on Arm, including Microsoft Office, Google Chrome, Slack, and GitHub runners, which results in a no-compromises experience for the end user.”