Summary of Key Points from Arm Holdings Performance Report

Performance reaches a historic high: Revenue exceeds $1 billion for four consecutive quarters.
Arm Holdings' total revenue for the third fiscal quarter reached $1.24 billion, a year-on-year increase of 26%. Among them, royalty revenue set a record of $737 million, up 27% year-on-year. The non-GAAP operating profit margin reached 41%, demonstrating a strong profit leverage during the AI transformation process.
Risk assessment: Memory shortage has limited impact on mobile royalty.
Although the industry faces the risk of a memory (DRAM) supply shortage leading to reduced production of low-end smartphones in 2026, CFO Jason Child stated that since Arm's revenue growth points have shifted towards the v9 architecture and high-end CSS chips, even if total smartphone sales decline by 20%, the overall impact on royalties would only be around 2%-4%, significantly enhancing risk resilience