Arm Holdings made more money than expected last quarter thanks to strong licensing, but smartphone sales are down.

Nov 5, 2026, 1:08 PM ETResultsRead the original at Benzinga

Good for ARM

Sales exceeded estimates, licensing revenue rose, and data-center royalties doubled. Weaker smartphone shipments and low free cash flow temper the gains, but Arm linked the cash shortfall to working-capital changes it expects to reverse.

ARM · Arm Holdings Plc

AI read · Good for ARM

The AI's read

Longer customer commitments and new licensing deals add to Arm’s growth prospects. Data-center royalties doubled, and Arm has orders for its upcoming server chip through 2027. Weaker smartphone shipments and a free-cash-flow shortfall temper the picture, but the company linked that shortfall to working-capital changes it expects to reverse.

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