Companies /Technology

Arm Holdings plc.

NASDAQ: ARM Semiconductors
$242.59
▲ $7.73 (+3.29%) today
Markets closed · 7:32pm ET

Q2 2026 Earnings

Reported Nov 5, 2025, 4:02pm ET · SEC source
$0.22
Miss −33.69%
EPS · est. $0.33
$1.1B
Beat +6.97%
Revenue · est. $1.1B
−12.2%
Trailing market
ARM vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−9%−6%−3%0Nov 5Nov 6report 4:02pm ETearnings−0.8%−6.7%
−9%−6%−3%0Nov 5Nov 6earnings−0.8%−6.7%
ARM −6.7%S&P 500 −0.8%
−9%−6%−3%0Nov 5Nov 6report 4:02pm ETearnings−1.6%−6.7%
−9%−6%−3%0Nov 5Nov 6earnings−1.6%−6.7%
ARM −6.7%NASDAQ −1.6%
−12%−6%0Nov 4Nov 13report 4:02pm ETearnings−0.8%−14.6%
−12%−6%0Nov 4Nov 13earnings−0.8%−14.6%
ARM −14.6%S&P 500 −0.8%
−12%−6%0Nov 4Nov 13report 4:02pm ETearnings−2.4%−14.6%
−12%−6%0Nov 4Nov 13earnings−2.4%−14.6%
ARM −14.6%NASDAQ −2.4%
−1.21%
Day of report
−3.71%
Next session
−11.34%
One week
−10.31%
30 days

S&P 500 over the same 30 days: +1.90%.

Did ARM Beat Earnings? Q2 2026 Results

Arm Holdings delivered a split verdict in its fiscal second quarter ended September 30, 2025, posting revenue that cleared Wall Street's bar while earnings fell notably short. The chip architecture company reported revenue of $1.14 billion, up 34.5% year over year and ahead of the $1.06 billion consensus estimate by roughly 6.97%, marking the third consecutive quarter above $1 billion. Earnings per share of $0.22, however, missed the $0.33 consensus by 33.69%, with the gap partly explained by a $64 million income tax expense that reversed a $43 million benefit recorded in the year-ago period. The headline revenue strength was driven by a 56% surge in license and other revenue to $515 million, alongside continued Armv9 royalty adoption across smartphones, cloud, and data center workloads. Arm also announced a roughly $265 million cash agreement to acquire DreamBig Semiconductor, expected to close by March 2026, signaling continued appetite for acquisitions as the company invests in next-generation product development and expands into new markets.

Key Takeaways
  • Strong growth in license and royalty revenue from both external customers and related parties
  • Revenue from SoftBank Group affiliate licensing and servicing arrangements increased significantly
  • Higher Arm China IPLA revenue
  • Gain on divestiture of Artisan foundation IP business to Cadence Design Systems ($131 million pre-tax)
  • Rising AI demand driving compute needs across all end markets
  • Improved mix of products with higher royalty rates per chip, particularly Armv9 technology
  • Contributions from backlog into the current period from arrangements entered in prior periods

Forward Guidance & Outlook

Arm expects to continue investing greater financial and other resources in technology and product development, exploring investment and acquisition opportunities, and engaging with partners to provide technical, financial, and other support. The company intends to continue allocating resources to new markets and different products and solutions for existing and prospective customers. Capital requirements will depend on revenue growth, R&D spending timing and extent, new product introductions, market acceptance, and overall economic conditions. The DreamBig Semiconductor acquisition is expected to close by the end of fiscal Q4 2026 (March 31, 2026). BIS is expected to continue issuing new rules restricting advanced semiconductors to China, with additional restriction risks susceptible to U.S.-China bilateral relations and trade negotiations.

ARM YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$400.0M$800.0M$1.2B$844.0M$1.1BRevenue$790.0M$1.1BGross Profit$64.0M$163.0MOperating Income$107.0M$238.0MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

ARM Revenue by Segment

License and Other Revenue$515.0M+56.0%
Royalty Revenue$620.0M+21.0%

ARM Revenue by Geography

United States$374.0M
Japan$206.0M
China$250.0M
Taiwan$175.0M
South Korea$82.0M
Rest of World$48.0M

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