ARM - Earnings call transcript Q2 2025 | Arm Holdings plc American Depositary Shares

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Operator

Good day, and thank you for standing by. Welcome to the Arm Second Quarter Fiscal Year 2025 Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jeff Kvaal, Head of Investor Relations. Please go ahead.

Jeff Kvaal

much. very you Thank earnings ending for September our of second fiscal 'XX XX, conference to the call quarter Welcome XXXX.

Financial Jason On Haas, the Arm's and the Rene Chief Child, Chief Executive call Officer of today Officer. are Arm

During the targets forward-looking results. regarding information financial discuss company its and and other the Arm call, will forecasts,

actual today, materially. best and are results subject many risks represent While of results actual these our statements differ and our future that results could cause uncertainties judgment current performance to as of to

In risks factors during may our and these no Form addition call, affect the to assumes described Arm on are obligation results statements. highlight to XX-F update may we that SEC. forward-looking with future important in that risk given performance the registration our any

financial Reconciliations able are shareholder financial GAAP certain discussion and found to supplemental the letter. financial projected during information measures non-GAAP these can non-GAAP be refer a of we without of as to will their our not directly in discussion. measures financial of to efforts, well reconcile as We non-GAAP unreasonable most certain measures comparable measures that

call shareholder to and The are at the investors.arm.com. Rene? earnings-related now Rene. And letter with materials turn I'll our on that available other website over

Rene Haas

strategies. all good exceeded and of Thank you, year, you our tell X I'm on now been very to have since about expectations everyone. of Jeff, afternoon, our It's year proud And that growth our IPO. that we execution in

is [indiscernible] chips since shipped. AI demand have everywhere now Arm [indiscernible], platform. demand The billion date, Arm's XXX for the for Compute over To been

vast to had and growth designed for continued revenue, ecosystem. vX end of Every as results a had Arm, of future set of with software increases. up XX% of continuing high CPU digital an year-on-year ]. being and are business [indiscernible] invest showing customers the modern past We record in the we revenue, of world needs quarter, of drivers in good these remains are our Licensing majority our the designed had The evolving royalty the Now the that AI because strong guidance. We AI [ adoption unequaled ever exceeding long-term consistent. the in a

specifically more the now of represents year to per XX% VersionX more growth, value royalty on really Now royalty ago. In being quarter, revenue by XX% chip. driven compared revenue a

More Dimensity Revenue the announced vX is importantly, clients, this smart-phones the iPhone CSS iPhone them growth Pro chipset, newest XX% being the versus in new -- using of one in XX their and our Apple's the and had X% XXXX unit CSS past a XX quarter, quarter, Royalty for past Arm's sector. MediaTek’ shipping delta. new on for mobile and in We in announcements, significant VersionX, first grew our

everywhere. platform compute now to that AI the without is performance our compute CSS year. can efficient demand We've licenses goes platform AI for It is number run only cloud. saying is from everywhere. and AI that the doubled this the power of Arm the edge driving

Some significant milestones.

Azure the NVIDIA's Arm Grace. general Cobalt now had data now center milestone. and GPU We've shipments with Blackwell started Microsoft in GCPx, CPU have based new integrating from significant shipments Grace ArmvX Google both NVIDIA availability, Blackwell in

ADAS In worked for CSS In Edge Arm's general, And vX pipeline on for in strong optimizing and AI market, is quarter, demand using libraries, on very applications. and CPU the the of a strong. enabling and X.X, together for IVI seeing Arm very Llama for device past faster we're products processing. now acceleration Meta both automotive

world. Hardware ecosystem developers, is software ever largest the and have invented. largest have nothing we without software, the software over the XX We the million in

and very announced like to significant partners is run hand GitHub be bright. Arm milestone for The on closely will CoPilot, GitHub, with that, And I the everywhere, over who of recently developers. with working a the future Arm. will just integration Tools Jason. it AI We're ecosystem will important in

Jason Child

year guided was matched which for XX% you, was our start strong Royalty Total our 'XX. $XXX end continued revenue revenue our to range. of and has $XXX grew Rene. revenue above highest year-over-year million, QX quarter million, date. Thank fiscal royalty the which top was

Our QX was adoption by driven continued of start royalty ArmvX revenue CSS and deployments. growth the

being As sold, with XX% based with of increasingly Smartphone revenue outperformed a mainly higher royalty with from application smartphone eased rate. royalty due number last increase shipments. quarter, to approximately the smartphones royalties mid-single-digit compared significantly in smartphone smartphone year-over-year processors ArmvX

we share automotive in and [indiscernible]. continue gain addition, to In applications with cloud

ongoing last by quarter the of inventory continued industrial, correction reported and weakness However, semiconductor in part offset industry, this our that the customers. by widely semiconductor is in given of growth partially indicated as many

to this, XX% our to fluctuations was we declined recommend quarter-to-quarter better million, a and or value, backlog. agreements the Licensing revenue due decline. understand the up quarter. rate. for normal sequentially ACV, year-over-year, [indiscernible] year-over-year bookings ACV up contributions very annualized multiple license was QX which size quarters. recent strong than XX% of RPO, we a contract growth performance was which best the that expectations, Remaining and license at as obligations, look in or with in from XX% you $XXX License was varies underlying revenue high-value consistent timing had to

later recognized year. Some as be this this of RPO will revenue

reflects end touch ending on This pipeline. XX, Turning and year fiscal both licensing view March and current third markets -- guidance. I briefly to our of now our guidance XXXX. will quarter our

our between we of expense at revenue growth expect the are $XXX track, represents million. in and around non-GAAP generation to midpoint, million $XXX we our million, revenue $XXX operating technologies year-over-year. which Investment next of be XX% and QX, expect For on

and our We to $X.XX non-GAAP $X.XX. be between EPS expect

our out revenue, year guidance profit. for and to 'XX, cost are fiscal Looking we reiterating

$X.X includes of to our growth increase. revenue high XX% between in an teens. be which midpoint year-over-year represents revenue XX% We guidance, and year $X.X expect billion At royalty this full revenue the billion, to

next becoming a ArmvX greater proportion couple from chips the We be based revenue growth CSS expect with quarters. driven mix, that our will of of to continue the ramping over smartphones by

and to automotive. not continue growth to to cloud in us and until IoT is expect next QX both networking QX, sequential while also from share gain to customers Feedback in our leads year. We recover in expected expect

Strong technologies to year. demand rest our latest continue for revenue the will the of drive for license

We as have licensing plus in [ for last quarter range kept revenue million the deals large year guidance ]. minus at we the some same $XXX or full as have funnel

close. increase is Although clear, unchanged operating expect not and deals revenue billion, the of expenses do from expect deals non-GAAP year-over-year a is to prior our We these which approximately we the and these shape recognition timing the yet to XX% of $X.XX do represents guidance.

expenses growth year. the expect R&D consistently operating in through continue future to We ramp initiatives, to we invest support to

We the $X.XX. expect I'll call. to of turn portion With year the between operator for non-GAAP our guidance full back the of the Q&A EPS $X.XX call and that,

Operator

[Operator question first And the Instructions] from line comes of your Gardiner Andrew Citi. from

Andrew Gardiner

touch a There I you you the product myriad Nuvia still next to as designs due light canceled court they shed litigation and working ahead topic and -- with of on Qualcomm's relationship the didn't regarding the I case greater prepared in Thanks, Jason, a recently remarks. hoping a I on is month, in have believe been plan court Qualcomm. architecture and little was that on your [indiscernible] could press based reports your both, you ship reportedly license also think, case. have

can issue the operating reports are have OpEx there periods related you about rise -- any Veracity's shed rec, comment legal actions? I if that, sure If these I you will your Do you on costs? tricky to reduce rev legal on things, on suppose it I'm into expenses but with and be talk numbers, to increased helpful. you know the would any remission specifically it's light Can revenue and to coming on

Rene Haas

to. Sure. happy Yes,

ongoing isn't base consent great can So level, Nuvia say and on I But address obtained. at the required Qualcomm deal I'll contractual -- litigation. I it. as license, what can that a was was consent not signed a by There an

obtaining not license. have they canceled your letter are in have consent, to the clear we did be the And architectural we of a result license, sent breach a them. and what a to notification not was -- we question, but cancellation of As notification sent to regarding that

now getting these license protecting fundamental who to rely ecosystem fairness agreements. assignment result, Arm we for as need is consent agreements. [indiscernible] on a for an ensure And and

maybe On OpEx. our chat revenue taken that on consideration case. forecast into we let Jason the -- But is may the this in regarding the always I'll financials, prevail not

forward taken have that essentially look. So we

So don't to there's you i want comment Jason if expense know the any make side? on

Jason Child

any changes because our actually change paid in no, rev-rec point, back I isn't ALA we're then, as this there think and pointed since consistent Rene existing at No, get at said I expenses no you forecast royalty going said, IPO the that not changes and is like rates. out, assumes we there's to -- -- think

increase any in be something So rates. there won't until changes, change those or

Operator

line next JPMorgan. your Harlan Sur the from And of question from

Harlan Sur

fiscal your business ago. been your in So view, come of the -- will now through full through even days that better Licensing, the growth in Just coming like from year prospects, view year your my right? your the we're and indicator upside best the forward looks it pipeline, licensing half for midway first your few in versus

renewal. you're So strong. more lift book-to-bill, add-on licensing I It value sequentially, looks you've this quarter, very assume like activity. backlog was some driving seen X:X, percent so up

per customers, the program, strong. mentioned, by are versus you strong backlog year? requirements year originally Can remainder this this its given last for Bookings of expected year. just engagements visibility on more lower activity renewals As compute the the grow be for team Rene the were your capability year. to CSS But fiscal for design

Rene Haas

of being and quite marketplace. for increased observing I Arm say for couple Yes. about demand talked a the Arm the in things demand strong the we're technology the would overall given that technology. We've ecosystem

these not we overall the about when chain, the center, automobile, but just edge. wearable, be the across inference seeing compute top it's have. We're people in and PC, compute resources in large of small run these the the increased data on value can what's language the call think and AI, network, different models they it's kind AI that the parts or for when run mobile what demand of inference language already an the requirements you the to look I phone, which with think of it's center, training going on agents data models would at

platform an driving increase for seeing is, I that the innovation R&D across and that's what for think, this we're us board to capture opportunity. So

the the the anticipated. all you're licensing And forward pretty the strength good markets business candidly, It's royalties it's for than we across and we're originally forward. communicated So bad a indicator also going sectors. of stronger for I think, right, the of seeing the -- had, strength all it's very demand and and

we've we as did, We CSS. MediaTek's’ year. remarks, I licenses been, mentioned think, I addition, anticipated. In the of CSS than announced number now also doubled chip as in That's over opening the mentioned, design the first stronger using

AI demand, you to compute also increased of the want combination add I a to and it's think if Jason, know, anything CSS. there's I So don't on that?

Jason Child

Yes.

strength In I terms increase asked, the to backlog? a based you the seen, we've if -- say, yes. certainly, think Harlan, on I that of there's way our

In was year than we're this of XX% at fact, if license implied revenue at kind look you plan -- up guidance, about I higher think XX% IPO. the what our back

seen we So strength. have

Now be -- is increased our increase -- think significant now will we probably don't there gas I backlog. to

that large to year, have be the But some the going of milestones to or in delivered by so. coming course, that kind will say the that there's quarter again, of of or later recognition But this be amortization impact we offset that's next deals some there. hard

real quarter, royalty particularly growth which the wouldn't being think the and year-on-year overall, excited really saw XX% I is in we So I about. on we're the focus count growth that that the --

Operator

comes from Your Bank. the line Deutsche Seymour Ross question from next of

Ross Seymore

side like guys X Is Rene on new and stick things. you there than I seems licensing larger you then licensees. of upwards CSS signing around talked of growing, XX a number originally, having TAM about, you're about to potential think, must think doubled of things. Going the ATAs that be XX I I think, somewhere that ATAs already. side is now? more the talked It

a And the we good over precursor in to if the future? royalty eventually there? for future hands that the being before do of things potential it such side has to So slow about growth think how

Rene Haas

size, way they broad they in of and in the also think out will. I different in to and think words, technology that a how give broad can chips a smaller to set of variations, tape IP get rights portfolio still one set is instance. terms additional of you than We scale because might i.e., in about and broad is single access suite opportunities if larger expand we have many tape-outs, and/or to Arm but Well, customers of a a build with on value grant reduce a portfolio year. end to number a of other to maybe it of sense, ATA's ATA the to the

the In our a the that to some things. love of [indiscernible] be concept I to use Arm ATA. the to easy of They number access of move purchasing and technology. And since have essentially to their And they're costs way. now very IP addresses having can reason for experimentation it thirdly, they two, think set version customer Number know them the majority broad a base because customers do going engineers IP anyway. they're know in lot of the a the of forward is they on an R&D allows going to cycle evaluation fix their can

less more on is a because meaning that ends are broader set is using up Arm end repeatable. engineers IP up having available, by they upside what what And we of -- So pretty broader because deals find more. candidly it's although for churn much

I So higher going to vast question, ultimately drive And think that's the the to in version to of broad of our royalties that's base think IP majority your used in the of future. given I -- ATA, can go set some customer ATA.

Jason Child

to Yes. couple add. of Maybe just things a

in XX% well fees license license them. the thought our had we and probably working we for past, our ATA of about think think probably said that I -- revenue as of

this I in XX% think in quarter, the we now said kind of range. over last we're

or ATA, years. increase one is on to then average thing I annual it's cost X% past, -- think contracts with but is the sure said we've X-ish I per are And price the think year. roughly just clear The around somewhere those make in

well. course, And to so then of you you're course, the and deploy as even also still can ATA, And and we have once technologies everyone is an product expand as upsize going then renew of annual increases. offering,

quite points and ways So I kind from multiple don't to we're there's TAM, -- think a growth the I TAM. reaching that of of expand

Operator

Arya comes America from line the of Vivek Securities. question from next Your Bank of

Vivek Arya

A few royalty business. on questions the

you teens and this then and color, think all cycle, low I high I appreciate but changed have there's any XXs I I contribution if that. other year's think, would to, from growth imagine that's the mid-XXs

XX% on. contribution business question vX like to contributor kind But every have unit thought biggest the I plan that to related the by of other And was the the -- points. your conversion is of is continue nicely, go pace, expand at that royalties to quarter installed growing Xx the of kind very is and would smartphone thought smartphone since over I would X

more stall And So take of down? to I the on was did color kind hoping need why conversion you quarter? it this then could royalty is in overall give the what vX growth,

Rene Haas

Yes.

both how then So want specifics. first the I to important let the Vivek. about a me the that make pricing vX about of the think I'll regarding Jason address then point talk and question, part to take and envelope an transition, vX inside let

it now our that it IT. in NeoVerse the products see opening shipments mentioned the we've But uptick of vX vX. Apple very, seen vX we're seeing strong the off, first starting all very from first I of transition mobile to and and We're adoption are the in in Automotive well. is of now very Better And going comments of

will at definitely a So the we're quarter-over-quarter-over-quarter very on be look it royalty happy start I a adoption. -- you rates with linear, may when adoption if multi-quarter basis. very, it the not we basis, the it at quarter-to-quarter looked think increasing looking And on

contrast time architectures way, That to tend being vX a VersionX to architecture of about during distinction regarding of by is I to make reference, XX by years ramping. peak that in the life which, there's way have of think royalties the VersionX a and important approximately those terms run said, I that In their to how very think the want rate.

was and to with growth and two rates the That's would there's throughout in once were there those royalty vX reached little meaning the the for be VersionX asymptote. VersionX royalty reasons the primary going that fixed case During version, that. of terms delta as saturation, that not for very period, versions maturity

technology Reason in improvements improvements for terms into phone let's product, generation, on multiyear XXXX, when introduced in XX% meaning production because goes product, vX delivered phone let's for then we say, on that one that deliver we a into say, is the and of we the better, we're the our is goes a production in that solution. version for product and power, drive in a and year multi generation better, XXXX the to performance value-based pricing that able that

benign, during to adoption even to as increases continued X even increases. VersionX going the throughout increasing from So VersionX, rates though version see royalty life are the we're of VersionX

introduced Secondly, not some more, times, in carries higher CSS, a cases, what mentioned double, also Version a several royalty we've in X would rate, core standard which be. we've of X, Version if

secondly, we better result, -- a have think And as With -- adoption, the those again, growth an to more I the can as the pricing because economics of factors. growth increase than that, X and a royalty So I'll transition of in that one, of it see we the answer extent Version traditionally. two maybe delivered higher sees track if value-based any Number comments, it's for that you question? has Jason, CSS.

Operator

[Operator Raymond from of James. Srini the Instructions] [indiscernible] question from next comes line Your

Unknown Analyst

for and standpoint months? point next of a a both standpoint? at could the months, from My then about understand that the on of you licensing driver So guess, and from a, months. to question on X% products a the data important Obviously, mix in XX and business. I last CSS potentially also networking the have I Rene, be momentum how royalty center for XX in that lot some is of center think next data trying accounted a XX ramping I'm the front your just

Rene Haas

Yes.

the and about talk piece. macro, me address numbers I'll Jason let let the So

with the Microsoft network many can GCP think with which NeoVerse had the next have very there, users, with seen of Azure We Graviton on now both adoption in Graviton, general be years. center with type compute of excited is and now based number by chips. not purchased GCP years. for to of the and going they -- -- Cobalt compute, months, XX over but we Google and the in for very, obviously to availability, trajectory we've And Azure upon just be now production purpose end Arm, the means I deployment about and instances general are that. components strong the for in very general-purpose on these we're opportunity Axion, Two

So for very, very and to primarily XX% driven compared see efficiency to general-purpose xXX. compute, results, we're power expecting between the is good fact anywhere than that XX% better by to the

we I Arm uses training opening, Grace chip, which addition, for overall inference as Grace CPU In Blackwell, of the demand solution. in mentioned are and as the seeing, NVIDIA advanced part that

lot the for in it in software compute One of that the also meaning is cluster that between an AI and reuse. of general introduced and AI for base data leverage using a solution of workloads are that information purpose arm this of for there center is the cluster, OS data on a center. There's center of are using benefits required many being general-purpose training lot or the used a

TCO we believe about. So of will from as an that result, Arm to data standpoint very center, adoption excited a we're which that accelerate overall

the talk and the Jason about mix. let I'll So numbers

Jason Child

market. -- well slow ramp. the custom to cloud infrastructure from the center data year market are side, of do back Rene reasons the terms expect and both of ramp has other but for just been data be center throughout it as the do half other Axion the and it that data specifically deployments also continue Cobalt in chips the to We and We to compute to mentioned, all Yes, continued silicon that continuing the expect to makers of strong. as accelerate the as networking

So accelerate. we do expect that to

Operator

comes from question from Your of Stanley. Lee next Simpson Morgan the line

Lee Simpson

percentage as again. back And maybe RPO in It it's though contributed understand And points here? really this looks just [indiscernible] trying couple of wanted better-than-expected to what licensing number. to year-on-year. a down to I how just licensing particular go that to does to the

quarter? So year? we forward licensing growth going can perhaps of how we how the through number? deals we the about this And do rest think we billion into $X.X of still pulled think a this Do track the to some

Rene Haas

Thanks, Lee.

So say, sort I any first, would foresee don't of we forwards. no, pull

it which a In lapped decrease. think -- have decrease about a than XX% because guided mostly had was year that a a terms we of a ago. $XX the decrease. really million the We large deals XX% guide comp higher upside, a I I with to actually of of couple again, is were tough think And

year-on-year a record this XX%. In reduction RPO, well, year the second quarter, sequentially we happen terms quarter stepped highest up it and of have the to have actually all-time in we ago, because the actually was

So as a a year, nice RPO from revenue this year. into fairly large a actually last that amount know, it's pretty we of effectively large had earlier you And increase. amortized deal signed

for So very, trend I that year end indicated very But I is has the that the the overall, a healthy. range. you probably think I of would been still reasonable yes, think expect range RPO

And than we've in in guidance that so on the other think I expect to deals included we QX. the close what

have something you significant At guys line know. let those. this beyond Obviously, don't we if changes, of sight we'll deals to point, any

Operator

from Comes question Research. from of [indiscernible] REIT line the next Your

Unknown Analyst

in want to next CSS years? adoption I smartphones? in see into do and the And through MediaTek’ get see Could few back smartphones, XX% announcement of just this how you the the to trending year. market next the year we of of

Rene Haas

Yes. Thank question. for you the

confidence it's so. the think value overall about the proposition Because increasing time and performance. think design CSS, really I market reducing in when about we what to and of

Single's the that aligning of cadence. when of annual or to relentless. [indiscernible] One cycle as forgiving it's hallmarks need an whether of mobile They're is you units available, market, the on terms It's not the know, the rather very product be is sure in I'm the fact phone Day in China.

more processors. combined cycle, smartphone complex, with are becoming these these with relentless more a very and product new So application ships

at have being in geometries the the cycle is do fabs you to Anything welcomed. chip takes which improve time built manufacturing most times. also longer they're design advanced can it the the a then And

be we had when we very very, applicable introduced of we've seen actually market, the phone would CSS, adoption. for mobile whether So good it but skepticism, what a bit is

market? a can yes, summary, to on months XX% of can the that get very, there's time I a being product product so in we delivered very what is believe cycle. move in because value of and So real development severe relentless the typically

Operator

Thank you.

comes question TD line next Your the Sankar from Cowen. Krish from of

Sreekrishnan Sankarnarayanan

question I on It the smartphone seems like in also, seeing China. had where you a your entity royalties? the any today? meaningful quick is mix what the of impact is shifting China the towards China Are market. vX And penetration in Android

Rene Haas

for you Thank question. the Yes.

numbers definitely We handset are just -- to mentioned. in due overall in the reasons you seen had strength China that we've the

I Oppo, are very, good all seeing think Xiaomi, brands very Vivo there, the local growth.

an Our has participated Oppo month. in launch product last team

growth strong So there. been number one, has

I year find so, think flagship to the into local premium and there into market, is an way VersionX, going next all we that's allegiance brands. or as the towards its that's in the get the also midrange. And

So and be strong majority China Version Android the X. to is The all of products are now also to moving going the yes, there. [indiscernible]

Operator

question next of Difucci Securities. Your John the from comes Guggenheim from line

John DiFucci

temporary but in And some of are don't is there, you to on vX there's a what issue? are if would about not are to mix just, continue it benefiting we cloud NVIDIA, this the related think really -- mix not, out guys the some of a and we lot really others -- grow? know, grow? vendors, shouldn't the Or helpful it Rene, going haven't on places. to cause to for explanation royalties other the thanks seen That see macro forward. Is variables there it that like obviously the that. I But expect you was vX gave that

Like don't just minds be trying implied I curious people how I'm in up back And forward? figure of and is -- guidance? -- just to like our sort know -- going this could catch this to to in just going? how model see stepping I out let's there what's just Or

Rene Haas

for Thank quite actually it's going predictable. you to the No, question. be

ago, we XX% As XX%. year was said, it a

it Now a will will not I can you considerably year that. from than It higher be XX% now. be guarantee

driving is if So okay, and what say, you that? really step in

in going space I will market are as introduce is products and phone to VersionX one. number a the as very PCs see two, what That's in more think vendors more Number classic in introduced you're see and Arm the what you of what existed the in its chips. a in given, a low this midrange windows mobile more single the time. find evolution way products. every flagship midrange way it's time. going the end. It's will natural the waterfall of That's in happen to was Happens find in will very

we So X the be year everything in will data expect the Version phones the of center do from we is now, in I mobile majority the center, would now Everything data that X. do -- VersionX.

and for CSS the those that's to it pipeline. there. got come be will sector, by just the and So time really takes the what activity to particular now introduced, be will particularly the We've products driven to really be But of ADAS. IVI automotive products market the in slowest around lag

for but look X be So the of guarantee from gave. numbers, we'll when we have then I'll reasons and XX% ahead now, you again, way the we'll year at this call I

Jason Child

vX collectivity penetration. John, of on just modeling

the if where look had at the doesn't mid-market So market flat waterfall you it smartphones, a most the has was yet specifically the vX in quarter in why have yet vX. quarter, higher because be it growth recent was the primary to quarter-on-quarter, reason

to like the of And do turned in this where more kind market be installed has and with as the to looks it out growth the so most it really in vX recent quarter.

over out. shakes time, stuff all So that

but to maybe this to have last in you our going quarter like trends saw we but will As Renee this most some don't said, quarter, I -- think -- sustain? this [indiscernible],

Rene Haas

And licenses sight tend products plan chip take when vendors sight good with the the we of when of the in it. when of very they ago. years products, anywhere visibility up. to been line with to that's the we have to X- terms X-year We have increase on and to line they're OEMs very they Arm's go have because a between And good have done going

So don't thing. quarter read the of much in terms too

the We terms they're have going That's and visibility in clear. where good to of extremely only going land is forward. very trend

Operator

your We final question our Goldman for will from Sachs. from now comes final And line question of today. take Toshiya the Hari

Toshiya Hari

dynamic? visibility just customers your that do you in a what I grow? share Is Is spoke a think in 'XX it goal really conferences the of your PC and terms working your to hoping underwhelming markets. CSS Renee, for because long are beginning so the was know and on in so your I rate. smartphones or the replacement smartphone outlook your units not the relatively catalyzed thoughts royalty AI to But I to goal more across you the on, XX% expectations still to growing volumes you've aspirational year it either. smartphones far when are at hasn't guys AI relative of run, 'XX on dynamic? of And spoke of have you out PCs pieces a forward to the got vX dependent one and is over been a that like guys? get cycle maybe you at expect you PC given market things

Rene Haas

we of question first, last all filling think Windows lineup prediction. it's broad Yes. out absolutely, about about stand ecosystem, that by Answering When really your the a and Sure. SKUs. I

there's mid-price If machines, cetera. into that retailer gaming machines, a cetera, et you go see laptops, et you'll low-end today, machines, thin-and-light

a see see, because it we in you're need that of out we working people multiple have chips of filling what sight terms multiple on great to of line will going is areas in and SKUs. -- think what we're I to

see When when at based you an compelling you'll by inside, see So if a point Arm I think with comes laptop gaming you to way, different Arm the growth. out. has start will that chipset, see [indiscernible] on be devices a when light price which entry that and

I you'll think growth. see

confident we're in the So next market. pretty PC of terms the of in years couple of growth terms in

the Now PCs run what's is applications. the whether required that's AI demand horsepower with to are related equipped AI that think these important to I

of definition get terms I so think But relative the it's prop. that. wouldn't of I early to days PC AI up hung in value the on an

more got of is other these then technology around. cycles the then in it there, way types with that we to applications you've What and you typically of need -- take the see flips advantage

being my demand, is So on growth and on I of we're this broadly pretty future-proofed. But the stick to Arm. yes, definitely speaking, about prediction largely bullish Windows

Operator

remarks. to CEO, call back for now Rene hand will closing Haas I the

Rene Haas

you. Again, everyone, in do And you, we're our now and told you expectations we've the a been to interest call we've that conference public quarter. questions company, were Thank have for doing. what we since the we and thank going beating of been what the prior consistently summarize, the to fifth

seeing with you're as said more many, increased broadly, think We've of coming our and though, the business, the life. Arm vX, the opening, our of smartphones and I talked see I royalty times we've strategies, the really where the when And you growth in strategy growth units, we're for rates. in a to royalty resiliency what XX%. example, put great are place a market point are up That's a about in working. in many X%, up that proof

future The incredibly is bright.

all the up regarding talk automotive, all grow very in all all future. and that came are smartphones, about opportunities that verticals, going Arm them to of we're For AI, to PCs, able those center, in the to them the fortunate are data exciting using be questions of

thank So appreciate much, questions I very the and you comments. all and

Operator

This concludes for you. Thank conference today's Thank you call. participating.

disconnect. now may You

Arm Holdings plc American Depositary Shares (ARM) 6 Nov 242025 Q2 Earnings call transcript