ARM Holdings PLC
arm.comWhat Do They Do?
Licenses chip-design technology to semiconductor companies, device makers, and cloud providers, and is expanding into Arm-designed CPUs.
20-F for FY2026, filed May 26, 2026Arm architects, develops, and licenses our high-performance, and energy-efficient Arm compute platforms, and as of March 2026, we have…View ↗
Our open and flexible business model provides access to high-quality CPU and other IP products from our compute platform for a wide range…View ↗
Arm CPUs. The foundation of our product offerings is our CPU products. Our CPU products leverage our common scalable architecture and…View ↗
The Company is a global leader in the semiconductor industry. The Company’s principal operations and activities are the licensing…View ↗
How Do They Make Money?
Customers pay fees for licenses to use Arm’s chip designs; some library and subscription licenses are paid over the contract term. Arm also earns a fee each time customers ship a chip containing its technology, and charges for Arm-designed silicon products.
20-F for FY2026, filed May 26, 2026Our open and flexible business model provides access to high-quality CPU and other IP products from our compute platform for a wide range…View ↗
For our IP products, our customers can choose from several licensing models, each with its own pricing mechanics and level of access to Arm…View ↗
Intellectual property license — The Company generally licenses IP under non-exclusive license agreements that provide usage rights for…View ↗
Certain license agreements provide customers with the right to access a library of current and future IPs on an unlimited basis over the…View ↗
Certain subscription license agreements include unspecified future IPs that are provided on a when-and-if-available basis, representing a…View ↗
For most IP license agreements, royalties are collected on products that incorporate the Company’s IP. The Company applies the royalty…View ↗
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20-F for FY2026, filed May 26, 2026
FY2026 revenue by product or service ↗
$4.9B
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20-F for FY2026, filed May 26, 2026
$4.9B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
License and Other Revenue
Mix
20-F for FY2026, filed May 26, 2026 |
47%
FY2023: 37%
|
License and Other Revenue, FY2026
$2.3B Sources
|
Mix |
|
Royalty
Usage-based
20-F for FY2026, filed May 26, 2026 |
53%
FY2023: 63%
|
Royalty, FY2026
$2.6B Sources
|
Usage-based |
Who Are Their Customers?
Semiconductor companies, device makers, cloud providers, and other organizations license Arm designs to create chips; chip makers then pay royalties on shipments containing Arm technology.
20-F for FY2026, filed May 26, 2026
20-F for FY2026, filed May 26, 2026
For the fiscal year ended March 31, 2026, the Company had three customers that collectively represented 42% of total revenue, with the…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 18 cents of every revenue dollar as net income in FY2026 and turned 20 cents into free cash flow.
20-F for FY2026, filed May 26, 2026
$900MView ↗
20-F for FY2026, filed May 26, 2026
$904MView ↗
20-F for FY2026, filed May 26, 2026
$979MView ↗
How Are They Changing?
Growing. Revenue grew 82% in 4 years, from $2.7B in FY2022 to $4.9B in FY2026, about 16% a year.
Who Do They Compete With?
Competes with x86 and RISC-V
20-F for FY2026, filed May 26, 2026We compete based on a variety of factors, including price, performance, energy-efficiency, ease of product customization, product quality…View ↗
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