Arm Holdings plc

Good day and thank you for standing by. Welcome to the Arm's first quarter of fiscal year 2026 webcast and conference call. At this time, all participants are in the listen only mode. After the speakers presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to send the conference over to your first speaker today, Jeff Kvall, Vice President Investor Relations. Please go ahead.

Thank you very much Sharon and welcome everyone. This is our first earnings call of fiscal year 2026. On the call today are Renee Haas, Arm's Chief Executive Officer and Jason Child, Arm's Chief Financial Officer. During the call, Arm will discuss forecasts, targets and other forward looking information regarding the company and its financial results. While these statements represent our best current judgment about future results and performance, our actual results are subject to many risks and uncertainties that could cause results to differ materially. In addition to any risks that we highlight during this call, important risk factors that may affect our future results and performance are described in our registration statement on form 20F filed with the SEC. Arm assumes no obligation to update any forward looking statements. We will refer to non-GAAP financial measures during the discussion, reconciliations of certain of these non-GAAP financial measures to their most directly comparable GAAP financial measures can be found in our shareholder letter as can a discussion of certain projected non-GAAP financial measures that we are not able to reconcile without unreasonable effort and supplemental financial information. The shareholder letter and other earnings related materials are available on our website at .arm.com. And with that, turn the call over to Renee. Renee.

Thank you, Jeff and welcome everyone. We began fiscal year 2026 with strong momentum fueled by the insatiable compute demands of AI. From smart sensors in homes and factories to the world's most advanced AI supercomputers, AI workloads are being deployed everywhere. This is driving unprecedented demand for compute that's not only performant, but also energy efficient. And Arm is the only compute platform built to deliver AI performance across the full spectrum of power and performance from milliwatts to megawatts. As a result, Q1 was our highest revenue quarter, second highest revenue quarter at 1.05 billion. Royalty revenue reached $585 million, up 25% year on year with strong momentum across all of our end markets. Licensing revenue was 468 million as companies continue to make Arm the AI platform of choice. Custom silicon on Arm is driving unmatched AI scale in the cloud. More than 70,000 enterprises now run AI workloads on Arm Neoverse data center chips, a 40% increase year on year and a 14X surge since 2021. Arm Neoverse CPUs now power the most important AI infrastructure in the world, including Nvidia Grace, AWS Graviton, Google Axion and Microsoft Cobalt among others. Driven by a performant and efficient compute, for example, Nvidia Grace Blackwell is 25 times more energy efficient in the previous x86 base system. We expect the market share of Arm Neoverse base chips to top hyperscalers to reach nearly 50% this year. We are also seeing AI moving to the edge, where the need for local real-time intelligent is enabled by Arm's efficiency and scale. Our compute platform delivers a unique combination of AI performance acceleration and energy efficiency, including the Ethos U85NPU for enhanced image recognition and our V9 CPUs with a scalable major extensions for accelerating language models, which can boost the performance of these models while limiting power and latency overhead. Technology leaders, including Apple, Samsung and MediaTek are integrating these AI capabilities for faster, more efficient AI on premium smartphones. AI workloads are going local and Arm is making it possible. Our leadership in AI is amplified by our unmatched software developer ecosystem. Over 22 million developers, more than 80% of the global base build on Arm. This ecosystem is a powerful flywheel. More developers means more for software availability, which in turn drives more demand for our compute platform across every market. Our compute subsystems, CSS, are helping customers move faster and the demand has exceeded our expectations. Our first generation of CSS is now in market with five customers and is delivering double the royalty of Arm V9. We signed three additional CSS licenses this quarter with existing CSS customers, including two for the data center and one for PCs, more than doubling our CSS licenses from a year ago. Recently, Xiaomi launched the X-Ring 01 and Samsung launched the Galaxy Flip 7 using the Exynos 2500, both based on the latest Arm compute subsystem platform. These subsequent generations of our CSS platforms deliver even greater value functionality and time to market and bring the highest royalty rates we have seen to date. This includes the launch of Xena CSS, a platform optimized for AI driven automotive workloads like autonomous driving. Also in the quarter, a major smartphone OEM is committed to our GPU platform to accelerate graphics and AI in multiple generations of their flagship smartphones through 2030. Our business relationship with SoftBank has expanded to help them build towards their greater, broader AI vision. We are continuing to explore the possibility of moving beyond our current platform into additional compute to subsystems, chiplets and potentially full end solutions. To ensure that these opportunities are executed successfully, we have accelerated the investment into our R&D. These investments include expanding engineering delivery across multiple levels, adding to the already significant product investments we have made to date. Momentum behind the broad CSS adoption and increased demand for AI compute and Arm are driving a powerful growth trajectory for the company. And with that, I'll hand over to Jason.