ARM Holdings: How Next-Generation CSS Platforms Are Driving Its Revenue Growth!

Arm Holdings PLC began fiscal year 2026 with notable performance, achieving its second-highest revenue in Q1 at $1.05 billion. The results highlighted significant strides, especially in the royalty and licensing segments, primarily driven by the surging demand in AI computing across diverse sectors. Royalty revenues showed impressive growth, rising 25% year-on-year to $585 million, fueled by advancements in smartphones, data centers, automotive, and IoT markets. Notably, Arm’s presence in AI has been expanding, with over 70,000 enterprises running AI workloads on its Neoverse data center chips—a 14-fold increase since 2021. This growth underpins the strategic importance of AI to Arm’s portfolio, which is reflected in its Neoverse CPUs powering key AI infrastructures, contributing significantly to the royalty growth observed.