Arm Reports Record Full-Year FY25 Revenue, Issues Weak Q1 FY26 Guidance

ARM
October 08, 2025

Arm Holdings plc reported its fourth-quarter and full fiscal year 2025 results on May 7, 2025, achieving record total revenue of over $4 billion for the full year, with royalty revenue exceeding $2 billion for the first time. The fourth quarter itself marked a milestone with total revenue surpassing $1 billion for the first time, reaching $1.24 billion, a 34% year-over-year increase.

Despite strong revenue growth, net income for Q4 FY25 fell 6% to $210 million, or 20 cents per share, compared to $224 million, or 21 cents per share, in the prior year. Adjusted earnings per share for the quarter were 20 cents, falling short of analyst expectations of 42 cents.

For the first quarter of fiscal year 2026, Arm provided a cautious outlook, projecting revenue between $1 billion and $1.1 billion, with adjusted earnings per share between 30 cents and 38 cents. The company notably did not issue full-year fiscal 2026 guidance, citing 'lower visibility' and 'uncertainty in the global trade and economic picture,' which contributed to a significant decline in its shares.

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