Financial PerformanceARM reported a good June quarter at $939M (versus consensus $905M), and guided to an inline September quarter of $805M (versus consensus $806M), though maintained its full year FY25 outlook despite a stronger first quarter.
Market PositionThe company is a unique investment property with solid leverage to the industry’s fastest growth drivers, a growing position in the rapidly expanding AI and Data Center markets, and a dominant player in key industry verticals, such as smartphones and a growing participation in the AI PC market.
Technology AdoptionThe surge in licensing revenues, growing double digits annually, is a strong leading indicator of ARM tech adoption and eventual conversion to recurring royalty revenues.