Companies /Technology

Arm Holdings plc.

NASDAQ: ARM Semiconductors
$242.59
▲ $7.73 (+3.29%) today
Markets closed · 9:00pm ET

Q1 2026 Earnings

Reported Jul 30, 2025, 4:02pm ET · SEC source
$0.35
Miss −0.31%
EPS · est. $0.35
$1.1B
Miss −0.77%
Revenue · est. $1.1B
−7.7%
Trailing market
ARM vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−10%−5%0+5%Jul 30Jul 31report 4:02pm ETearnings−0.8%−8.6%
−10%−5%0+5%Jul 30Jul 31earnings−0.8%−8.6%
ARM −8.6%S&P 500 −0.8%
−10%−5%0+5%Jul 30Jul 31report 4:02pm ETearnings−1.2%−8.6%
−10%−5%0+5%Jul 30Jul 31earnings−1.2%−8.6%
ARM −8.6%NASDAQ −1.2%
−6%0+6%Jul 29Aug 7report 4:02pm ETearnings−0.7%−9.2%
−6%0+6%Jul 29Aug 7earnings−0.7%−9.2%
ARM −9.2%S&P 500 −0.7%
−6%0+6%Jul 29Aug 7report 4:02pm ETearnings−0.5%−9.2%
−6%0+6%Jul 29Aug 7earnings−0.5%−9.2%
ARM −9.2%NASDAQ −0.5%
−13.44%
Day of report
−2.68%
Next session
−4.11%
One week
−6.39%
30 days

S&P 500 over the same 30 days: +1.30%.

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 $0.35 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 <a href="https://247wallst.com/investing/2025/07/30/live-will-arm-nasdaq-arm-soar-after-todays-earnings-report/">slipped in pre-market trading</a> 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

“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.”

Arm CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY26, Arm guided revenue of $1.01 billion to $1.11 billion, non-GAAP operating expenses of approximately $655 million, and non-GAAP fully diluted EPS of $0.29 to $0.37. The company expects to recognize approximately 27% of its $2,232 million in remaining performance obligations as revenue over the next 12 months, 15% over the subsequent 13-to-24 month period, and the remainder thereafter. Arm expects the market share of Neoverse-based chips shipped to top hyperscalers to reach nearly 50% this year.

ARM YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$300.0M$600.0M$900.0M$939.0M$1.1BRevenue$884.5M$1.0BGross Profit$182.0M$114.0MOperating Income$223.0M$130.0MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

ARM Revenue by Segment

License and Other Revenue$468.0M−1.0%
Royalty Revenue$585.0M+25.0%

ARM Revenue by Geography

United States
Japan
China
Taiwan
South Korea
Rest of World

Figures from SEC filings and company reports. Not investment advice.