Arm posts record $1.24 billion quarter; royalties rise 27% to $737 million

Arm reported revenue of $1.242 billion for the quarter ended December 31, 2025, up 26% from a year earlier, its fourth straight quarter above $1 billion. Royalty revenue rose 27% to a record $737 million, while licensing and other revenue rose 25% to $505 million. Non-GAAP earnings per share were $0.43, up from $0.39, and annualized contract value reached $1.62 billion, up 28%.

• Revenue $1,242M, up 26% year over year
• Royalty revenue $737M, up 27% (record)
• Licensing and other revenue $505M, up 25%
• Non-GAAP EPS $0.43 vs $0.39 a year earlier
• Annualized contract value $1,620M, up 28%
• 21 Compute Subsystems (CSS) licenses across 12 companies