Arm Holdings plc Q3 2026 Earnings Recap

Arm Holdings delivered a record third quarter for fiscal year 2026, with revenue growth of 26% to $1.24 billion, driven by strong performance across its AI and data center segments.

Key Takeaways

• Royalties reached a record $737 million, a 27% increase year-on-year, fueled by substantial gains in the data center segment.
• License revenue rose 25% to $505 million, indicating robust demand for next-generation technologies.
• Arm's data center royalty revenue has more than doubled year-on-year, with expectations of becoming the company's largest segment in the near future.
• Continued investment in R&D highlights the company’s focus on innovation across Edge AI, Physical AI, and Cloud AI business units.
• The compute subsystem (CSS), now with 21 licenses across 12 companies, is significantly enhancing market entry speed and driving up the value per chip.