Arm Holdings
ARMQ1 2026(ARM Q3 FY2026)Estimated18% AI
AI Revenue %
18%
AI Fair Value
$15.9B
AI Revenue (Q)
$210.2M
Total Revenue (Q)
$1.2B
Source: SEC EDGAR 6-K Filing
Browse 6-K filings on SEC.govAnalysis
Arm reported $1,242M total revenue (License $505M + Royalty $737M) for Q3 FY2026 (Oct-Dec 2025). Royalty revenue of $737M up 27% YoY from $580M — strong acceleration driven by Armv9 premium and data center volume. Nine-month total $3,430M vs $2,766M YoY (24% growth). AI-relevant revenue: (1) data center Neoverse royalties est. ~$110M (NVIDIA Grace Blackwell, AWS Graviton4, Microsoft Cobalt, Google Axion all at scale), (2) AI-specific licensing est. ~$45M, (3) mobile AI inference royalties est. ~$38M (Apple Intelligence, Galaxy AI, Pixel AI all driving higher-value Arm-based SoCs), (4) automotive AI/ADAS est. ~$14M, (5) CSS/subsystem for AI est. ~$17M. Total ~$224M / $1,242M = ~18.0%. The 27% royalty growth rate significantly exceeds overall chip unit growth, indicating mix shift toward higher-value AI workload chips (Armv9 premium is est. 2x the royalty rate of Armv8).
Analyzed by claude-opus-4-6
Quoted Figures
License and Other Revenue $505M, Royalty Revenue $737M, Total $1,242M
6-K filed 2025-12-31, Segment Information table
Nine Months Ended December 31, 2025: License $1,488M, Royalty $1,942M, Total $3,430M (vs $2,766M prior year)
6-K filed 2025-12-31, Segment Information table
AI Products Identified (Ring 1)
Neoverse V3/N3NVIDIA Grace (Arm-based)CSS for AIEthos NPUArmv9 with SME2/SVE2KleidiAI
AI-Enabled Items (Ring 2 — Not Counted)
These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.
Mobile CPU IP (Apple, Qualcomm, MediaTek, Samsung)IoT/embeddedAutomotiveWindows on Arm PCsNetworking equipment
Confidence Tier
EstimatedNo direct AI revenue disclosure — estimated from product mix