Here are what the results mean and how they were achieved:
- Revenue grew 26% year-on-year to $1.24 billion, representing Arm's fourth consecutive billion-dollar revenue quarter.
- Royalty revenue grew 27% year-over-year to a record $737 million, driven by growth across Arm's target end markets, including AI and general-purpose data center, smartphones, physical AI and edge AI.
- License and other revenue of $505 million increased 25% year-over-year, as more leading companies sign high-value licenses for next-generation Arm technologies.
- Demand for Arm Compute Subsystems (CSS) continues to exceed expectations as adoption grows in light of increasingly complex chip designs. This represents a significant tailwind to royalty growth, as Arm expands both the value delivered and economics captured per chip.
- During the quarter, Arm signed two CSS licenses for use in both edge AI tablets and smartphones, bringing the total number of CSS licenses to 21 across 12 companies.
- Additionally, five customers are now shipping Arm CSS-based chips, including two shipping its second-generation platform, while the top four Android smartphone vendors are all shipping Arm CSS-powered devices.
