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Arm

Arm (ARM) Q1 2026 Earnings

Reported Jul 30, 2025 at 4:02 PM ET · SEC Source

Q1 26 EPS

$0.35

MISS 0.31%

Est. $0.35

Q1 26 Revenue

$1.05B

MISS 0.77%

Est. $1.06B

vs S&P Since Q1 26

+93.5%

BEATING MARKET

ARM +111.3% vs S&P +17.8%

Market Reaction

Did ARM Beat Earnings? Q1 2026 Results

Arm Holdings posted a narrow miss on both top and bottom lines in its fiscal first quarter of 2026, with revenue of $1.05 billion falling just 0.77% short of the $1.06 billion consensus and non-GAAP diluted EPS of $0.35 coming in 0.31% below the $0.3… Read more Arm Holdings posted a narrow miss on both top and bottom lines in its fiscal first quarter of 2026, with revenue of $1.05 billion falling just 0.77% short of the $1.06 billion consensus and non-GAAP diluted EPS of $0.35 coming in 0.31% below the $0.35 estimate, though revenue still climbed 12.1% year-over-year. The primary engine of growth was royalty revenue, which rose 25% year-over-year to $585 million, powered by accelerating adoption of the Armv9 architecture and expanding use of Arm-based chips in data centers, where more than 70,000 enterprises now run AI workloads on Neoverse silicon. Profitability, however, felt the weight of a 34% surge in R&D spending to $650 million, compressing the non-GAAP operating margin to 39.1% from 47.7% a year ago. Shares slipped in pre-market trading after Arm issued Q2 guidance for revenue of $1.01 billion to $1.11 billion and non-GAAP EPS of $0.29 to $0.37, reflecting continued heavy investment in AI infrastructure as the company pursues long-term platform expansion.

Key Takeaways

  • • Continued adoption of Armv9 architecture driving royalty revenue growth
  • • Ramp of chips based on Arm Compute Subsystems (CSS)
  • • Increased usage of Arm-based chips in data centers
  • • Royalty revenue growth across all target end markets: data center, automotive, smartphones, and IoT
  • • Annualized contract value grew 28% year-over-year to $1,528 million
24/7 Wall St

ARM YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

ARM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26
24/7 Wall St

ARM Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 26 Q3 26

“Arm is powering AI workloads everywhere with unmatched performance and energy efficiency. Our Q1 FYE26 results exceeded $1 billion in revenue for the second straight quarter as royalties grew across all target end markets, demonstrating the strength of Arm as the AI platform of choice – from the cloud to the smallest edge devices.”

— Rene Haas, Q1 2026 Earnings Press Release

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