Arm Holdings’ licensing revenue of USD 505 million in Q3 fell below estimates, disappointing investors. However, revenue is expected to accelerate next quarter, possibly exceeding USD 750 million. Data-center royalty revenue grew over 100% YoY, with smartphone royalty rate increases driving growth. Fair value estimate remains at USD 80, with shares seen as 20% overvalued. Guidance for fiscal 2027 will be crucial, with potential smartphone market headwinds to consider.

Read more at Morningstar: Arm Earnings: Data Centers Becoming Increasingly Important for the Growth Story