ARM Holdings PLC (ARM) Q2 2025 Earnings Call Highlights: Record Royalty Revenue and Strong AI ...

GuruFocus.com11-07

Total Revenue: $844 million, above the top end of the guided range. Royalty Revenue: $514 million, up 23% year-over-year. Smartphone Royalty Revenue Growth: Increased approximately 40% year-over-year....

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nARM Holdings PLC (ARM) Q2 2025 Earnings Call Highlights: Record Royalty Revenue and Strong AI ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 15:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/arm-holdings-plc-arm-q2-072809508.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Revenue: $844 million, above the top end of the guided range.\nRoyalty Revenue: $514 million, up 23% year-over-year.\nSmartphone Royalty Revenue Growth: Increased approximately 40% year-over-year....</p>\n\n<a href=\"https://finance.yahoo.com/news/arm-holdings-plc-arm-q2-072809508.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARM","symbol_name":"ARM Holdings Ltd","start_time":0,"source_url":"https://finance.yahoo.com/news/arm-holdings-plc-arm-q2-072809508.html","article_id":"2481928094","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481928094","pubTimestamp":1730964489,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Total Revenue: $844 million, above the top end of the guided range.Smartphone Royalty Revenue Growth: Increased approximately 40% year-over-year.Q3 Revenue Guidance: Between $920 million and $970 million.Non-GAAP Operating Expense Guidance for Q3: Around $525 million.Non-GAAP EPS Guidance for Q3: Between $0.32 and $0.36.Fiscal Year '25 Revenue Guidance: Between $3.8 billion and $4.1 billion, representing an 18% to 27% year-over-year increase.Full Year Non-GAAP Operating Expenses Guidance: Approximately $2.05 billion, a 19% year-over-year increase.Full Year Non-GAAP EPS Guidance: Between $1.45 and $1.65.GuruFocus has detected 3 Warning Sign with ARM.For the complete transcript of the earnings call, please refer to the full earnings call transcript.ARM Holdings PLC  reported record royalty revenue, up 23% year-on-year, driven by increased adoption of the v9 architecture.The company exceeded the high end of its revenue guidance for the quarter, with total revenue reaching $844 million.Lic","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ARM":"ARM Holdings Ltd","ARMH":"ARM Holdings"},"translate_title":"ARM Holdings PLC(ARM)2025年第二季度收益看涨期权亮点：创纪录的特许权使用费收入和强劲的人工智能……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARM":1,"ARMH":1},"content_text":"Total Revenue: $844 million, above the top end of the guided range.\nRoyalty Revenue: $514 million, up 23% year-over-year.\nSmartphone Royalty Revenue Growth: Increased approximately 40% year-over-year.\nLicensing Revenue: $330 million, declined 15% year-over-year.\nAnnualized Contract Value (ACV): Up 13% year-over-year.\nRemaining Performance Obligations (RPO): Up 10% sequentially.\nQ3 Revenue Guidance: Between $920 million and $970 million.\nNon-GAAP Operating Expense Guidance for Q3: Around $525 million.\nNon-GAAP EPS Guidance for Q3: Between $0.32 and $0.36.\nFiscal Year '25 Revenue Guidance: Between $3.8 billion and $4.1 billion, representing an 18% to 27% year-over-year increase.\nFull Year Non-GAAP Operating Expenses Guidance: Approximately $2.05 billion, a 19% year-over-year increase.\nFull Year Non-GAAP EPS Guidance: Between $1.45 and $1.65.\n\n\nWarning! GuruFocus has detected 3 Warning Sign with ARM.\n\nRelease Date: November 06, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nARM Holdings PLC (NASDAQ:ARM) reported record royalty revenue, up 23% year-on-year, driven by increased adoption of the v9 architecture.\nThe company exceeded the high end of its revenue guidance for the quarter, with total revenue reaching $844 million.\nARM's smartphone royalty revenue grew by 40% year-over-year, significantly outpacing the 4% growth in smartphone unit shipments.\nARM has doubled the number of CSS licenses in the past year, indicating strong demand for its new technology offerings.\nThe company is seeing strong demand for its AI capabilities, with significant milestones achieved in partnerships with NVIDIA, Microsoft Azure, and Google GCP.\n\n Negative Points \n\nLicensing revenue declined 15% year-over-year, although this was better than the expected 25% decline.\nThere is ongoing litigation with Qualcomm, which could potentially impact future revenue and operating expenses.\nThe industrial sector continues to show weakness due to an ongoing inventory correction in the semiconductor industry.\nARM's guidance indicates that IoT market recovery is not expected until next year.\nThe company faces challenges in the networking sector, which is expected to remain slow despite growth in data center applications.\n\n Q & A Highlights \nQ: Can you comment on the reports regarding your litigation with Qualcomm and its impact on revenue recognition and operating expenses? A: Rene Haas, CEO: Contractual consent was required by Qualcomm to sign a Nuvia license, which was not obtained, leading to a breach. We sent a notification letter regarding the cancellation of the architectural license. Our financial forecasts have considered the possibility of not prevailing in this case, so there are no changes to revenue recognition or operating expenses. Jason Child, CFO: No changes in revenue recognition or expenses as our forecast assumes existing ALA royalty rates.\nQ: Given the strong licensing activity, can the team grow its backlog for this fiscal year? A: Rene Haas, CEO: We're seeing increased demand for Arm technology across various sectors, driven by AI and compute needs. This has led to stronger licensing demand than anticipated, indicating a strong business outlook. Jason Child, CFO: Based on current strength, we expect to maintain or slightly increase our backlog, with license revenue guidance up 45% from IPO plans.\nQ: How do you see the adoption of CSS in smartphones trending, and could it reach 50% of the market? A: Rene Haas, CEO: CSS adoption in smartphones is strong due to its ability to reduce time to market and increase design confidence. Given the relentless product cycle in the smartphone market, we believe CSS can reach 50% market penetration due to its value in reducing development time.\nQ: What is the outlook for the PC and smartphone markets, and how does AI factor into this? A: Rene Haas, CEO: We expect growth in the PC market as Arm-based devices fill out the SKU lineup, including thin-and-light and gaming laptops. AI PCs are still early in defining their value proposition, but Arm devices are equipped to handle AI applications. We remain bullish on Arm's growth in PCs and smartphones, with AI playing a role in future-proofing devices.\nQ: What is the impact of the smartphone mix shift in China on your royalties, and what is the penetration of v9 in China? A: Rene Haas, CEO: We've seen strong growth in China, particularly with local brands like Xiaomi, Oppo, and Vivo. The premium flagship market is already using version 9, and this will extend to the midrange. The majority of products in China will transition to version 9, supporting royalty growth.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481928094"}