Arm reports Q4 EPS 55c, consensus 52c

Reports Q4 revenue $1.24B, consensus $1.23B. The company states: “The fourth quarter was a strong end to another great year. Arm (ARM) achieved record-breaking results in Q4, delivering record revenue and crossing the $1 billion revenue milestone for the first time in our history. We achieved record licensing revenue and, in a clear signal that we are increasing royalty per chip, delivered record royalty revenue exceeding $600 million. In addition, full year revenue for FYE25 exceeded $4 billion and royalty revenue exceeded $2 billion for the first time. Royalty revenue growth came from all target end markets – including data center, automotive, smartphones, and IoT – highlighting the strong execution of our diversification strategy. License revenue in Q4 was driven by revenue recognition of major deals signed in prior quarters and by new licenses signed in the quarter, such as a large multi-year agreement with the Malaysian Government to accelerate the development of an Arm-based AI ecosystem using Arm’s Compute Subsystems (CSS) and Arm Flexible Access business model. Our strong financials enabled record levels of R&D investment while also delivering non-GAAP EPS above the mid-point of our guidance. Our financial performance reflects the disciplined execution of a long-term strategy focused on sustained investment in a broad portfolio of technologies, positioning us to capture growth across diverse end markets.”