Arm Reports Quarterly Revenue of Over $1 Billion for First Time in Company’s History

Arm’s yearly revenue for FYE25 topped $4 billion following Q4 results.

May 7, 2025 -- Today Arm published a letter to its shareholders containing the company’s results for its fourth quarter and fiscal year ended Mar. 31, 2025. The infographic below provides the key highlights:

Here are what the results mean and how they were achieved: 

• Record revenues, with Arm crossing the $1 billion quarterly revenue milestone for the first time in the company’s history. Arm also achieved record royalty and licensing revenues with both over $600 million for the quarter. These were driven by major new deals and licenses, and growth across all of Arm’s markets, including the increasing deployment of Armv9 CPUs and Compute Subsystems (CSS) in chips for both smartphones and data centers. As a result, full year revenues for FYE25 exceeded $4 billion and royalty revenues $2 billion for the first time.
• Partner demand for Arm CSS continues to be stronger than initially anticipated, and is expected to become the product of choice for many future chip designs, reducing time-to-market and development costs. In fact, Arm recently signed its first license for CSS for Automotive with a leading global EV car manufacturer for its next generation of custom silicon solutions.
• Rapid AI growth from cloud to edge creating demand for power-efficient compute. Arm is uniquely positioned to lead this shift with the world’s most pervasive compute platform, which is already enabling AI inference at scale across cloud and edge environments:
  • In the AI datacenter, the computational power and efficiency of the Arm Neoverse platform is integral to meeting this high demand, with NVIDIA announcing that its Armv9-based Grace Blackwell superchip is now in full production.
  • In the vehicle, GM and NVIDIA announced that they are collaborating on next-generation AI-defined vehicles using the Arm-based NVIDIA DRIVE AGX Thor.
• Arm expects that close to 50 percent of all new server chips shipped to top hyperscalers in 2025 will be Arm-based. These companies are pairing Armv9-based custom silicon alongside their own accelerators to run AI workloads, with Google and Microsoft both announcing the rapid expansion of their own Arm-based data center chips:
  • Google confirmed that its Arm-based Axion chip is now available in 10 regions and being used by around 40 of their top 100 customers, including Spotify.
  • Microsoft expanded the range of software support on their Arm-based Cobalt 100 chips, with these running workloads from customers spanning Databricks, Siemens, and Snowflake.
• Arm introduced the first Armv9 compute platform developed for edge AI applications, which combines a new Arm Cortex-A320 CPU with Ethos-U85 NPU to enable on-device AI models over one billion parameters for high-performance IoT use cases, such as industrial automation, smart cameras, and beyond.
• Arm continues to increase investment in its ecosystem of more than 22 million software developers, including a new Arm extension for GitHub Copilot that is free to developers everywhere to make their software more performant and efficient. In addition, Arm Kleidi, which is dedicated to maximizing AI performance across the Arm platform for every developer, AI model and workload, achieved over 8 billion cumulative installs across Arm-based devices.
• Arm signed a new large multi-year agreement with the Malaysian Government, with this set to accelerate the deployment of an Arm-based AI ecosystem in the country using Arm CSS and Arm Flexible Access business model.
• Arm’s strong financial results enabled record levels of R&D investment into a broad range of technologies for long-term growth across multiple diverse markets.

The full letter to shareholders is available on the Arm investor relations website (https://investors.arm.com/financials/quarterly-annual-results). Information about the Arm earnings conference call can be found here.