ARM Holdings PLC · NASDAQ:ARM
ARM — Q3 FYE26 Earnings Presentation
24 slides from ARM's earnings presentation, Feb 4, 2026
Slide 1: Arm Holdings plc Q3 FYE26 Investor Presentation
Arm Holdings plc Q3 FYE26 Investor Presentation investor.relations@arm.com https://investors.arm.com February 4, 2026 © 2025 Arm 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that reflect Arm Holdings plc’s (“Arm”) plans, beliefs, expectations and current views with respect to, among other things, future events and financial performance. These statements involve known and unknown risks, unce
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP, Arm utilizes, and this presentation includes, certain non-GAAP financial measures that differ from measures calculated in accordance with GAAP. Arm’s non-GAA
Slide 4: Q3 FYE26: Highlights
Q3 FYE26: Highlights Operating Highlights Innovation Highlights +325bn Arm-based chips shipped $1,242m Cumulative number of Arm-based chips since 1990. Our volume has created a base for the largest Total revenue up 26% YoY ecosystem in the semiconductor industry. Arm gaining share in the data center
Slide 5: Royalty Growth from Rising Complexity, Volume Expansion
Royalty Growth from Rising Complexity, Volume Expansion More Complexity More Chips More Arm Per Chip • More advanced workloads need • Semiconductor industry revenue is • The concept of AI everywhere is Arm’s latest Armv9 architecture forecasted to grow at a CAGR of increasing demand for Arm’s highly
Slide 6: AI on Arm: Energy Efficiency from the Data Center to the Edge
AI on Arm: Energy Efficiency from the Data Center to the Edge IoT & Mobile Cloud Compute Automotive Embedded Generative AI Optimized Autonomous Smart for AI Driving Home AI for all applications © 2025 Arm 6
Slide 7: Unparalleled Software Ecosystem
Unparalleled Software Ecosystem 22M+ 10M+ Developers on Arm, Developer hours for Arm 1st decade of Armv8 1.5Bn 30M+ Ecosystem hours Developer hours 1st decade of Armv9 © 2025 Arm 7
Slide 8: Q3 FYE26: Licensing and royalty revenues
Q3 FYE26: Licensing and royalty revenues • Total revenue: $1,242m up 26% YoY • Royalty revenue: $737m up 27% YoY driven by the continued adoption of Arm technology with higher royalty rates per chip, such as Armv9 architecture and Arm CSS, and increased usage of Arm-based chips in data centers • Lic
Slide 9: Armv9 adoption driving royalty growth
Armv9 adoption driving royalty growth Royalty Revenue by Architecture 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FYE16 FYE17 FYE18 FYE19 FYE20 FYE21 FYE22 FYE23 FYE24 FYE25 Armv7 & older Armv8 Armv9 • Armv9 commands a higher royalty per chip than prior architectures • Armv9 adoption has started in
Slide 10: Diversification in multiple long-term growth markets
Diversification in multiple long-term growth markets Royalties by End Market - FYE16 Other Mobile • Arm is increasing revenue beyond mobile through a broadening range of products including CPUs and systems for markets such as cloud, automotive and IoT/embedded compute Note: reference to FYE16 relate
Slide 11: Royalty: Gaining Share in a Massive Market
Royalty: Gaining Share in a Massive Market Market Share1 Market Value1 FYE22 to FYE25 FYE22 to FYE25 MOBILE APPLICATIONS >99% >99% $29bn $40bn OTHER Edge AI MOBILE 70% 70% $18bn $17bn CONSUMER ELECTRONICS 30% 35% $70bn $61bn IoT & EMBEDDED 50% 50% $49bn $45bn CLOUD Cloud AI COMPUTE 3 9% 20% $16bn $2
Slide 12: Compute Subsystems: A better starting point for chip design
Compute Subsystems: A better starting point for chip design Rising design and manufacturing complexity is lifting cost, time-to-market and risk CSS helps partners solve cost and CSS adopted across Growing ecosystem time-to-market challenges many end markets accelerates deployment • Longer manufactur
Slide 13: Q3 FYE26: From Revenues to Profits
Q3 FYE26: From Revenues to Profits 98% 41% Non-GAAP Non-GAAP Gross Margin Operating Margin $1,242m $21m $1,242m $1,221m $716m $1,221m License Revenue $505m Royalty $505m Revenue $457m $737m Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP Net COS Gross Profit Operating Expenses Operating Income
Slide 14: Near-Term Guidance
Near-Term Guidance Q4 FYE26 Revenue ($m) $1.470bn +/- $50m Non-GAAP Operating Expense ($m)1 ~$745m Non-GAAP fully diluted earnings per share ($)1 $0.58 +/- $0.04 (1) For more information and definitions of the non-GAAP measures see the “Key Financial and Operating Metrics” section of our most recent
Slide 15: Arm is Building the Future of Computing
Arm is Building the Future of Computing Arm is the world’s most pervasive CPU architecture 325+ Billion Arm-based chips shipped since inception Everything today is a computer – CPUs needed everywhere 31 Billion Arm-based chips reported as shipped in FYE25 Ongoing innovation to support of customer ne
Slide 16: Appendix
Appendix © 2025 Arm 16
Slide 17: Q3 FYE26: Annualized Contract Value
Q3 FYE26: Annualized Contract Value • Annualized contract value, a metric for normalized license and other revenue, increased 28% YoY in Q3 $1,600m $1,620m $1,528m $1,365m $1,253m $1,270m $634m $1,182m $1,193m $1,160m $1,108m $1,030m $1,048m $1,009m $515m $505m $472m $468m $414m $403m $388m $354m $3
Slide 18: Q3 FYE26: Remaining Performance Obligations
Q3 FYE26: Remaining Performance Obligations • Remaining performance obligations (RPO), a metric for unearned revenue and amounts to be invoiced and recognized in future periods, decreased (8)% YoY in Q3 $2,433m $2,484m $2,414m $2,385m $2,325m $2,226m $2,232m $2,246m $2,168m $2,148m $634m $1,758m $1,
Slide 19: Q3 FYE26: Non-Financial Metrics
Q3 FYE26: Non-Financial Metrics Arm Flexible Access Arm Total Access • Arm Total Access (ATA) at 50 extant licenses, up 2 QoQ and 10 YoY 314 318 50 • Target market for these licenses include smartphones, AI 44 accelerators, automotive applications, data centers and embedded computing 222 203 31 • AT
Slide 20: Royalty Revenue: Arm is Gaining Share
Royalty Revenue: Arm is Gaining Share Market Share by Chip Value Arm x86 Other $250bln $200bln $150bln $100bln $50bln $0bln FYE21 FYE22 FYE23 FYE24 FYE25 Notes: Based on Arm internal estimates. Other includes legacy and niche architectures such as: • Proprietary architectures (68000, 80x51, AVR, Col
Slide 21: Royalty Revenue Provides a Platform for Long-Term Growth
Royalty Revenue Provides a Platform for Long-Term Growth • Royalty revenue can continue for many years or decades Royalty revenue from Arm products launched during Fiscal Year Ending $2,000m $1,800m $1,600m Still collecting $1,400m royalties on $1,200m products $1,000m developed in the $800m early 1
Slide 22: Reconciliations: GAAP to Non-GAAP and Adjustments
Reconciliations: GAAP to Non-GAAP and Adjustments © 2025 Arm 22
Slide 23: Cash Flow Statement
Cash Flow Statement © 2025 Arm 23
Slide 24: Reconciliation: Net cash from operating activities to Non-GAAP free cash flow
Reconciliation: Net cash provided by (used for) operating activities to Non-GAAP free cash flow and Non-GAAP free cash flow TTM © 2025 Arm 24