Arm reports Q1 EPS 35c, consensus 35c

Reports Q1 revenue $1.05B, consensus $1.06B. The company states: “The first quarter was a strong start to fiscal 2026 for Arm (ARM). We delivered our second best revenue quarter, and best Q1 revenue quarter ever, at $1.05 billion. Royalty revenue grew 25% year-over-year to $585 million, representing a record first quarter. Royalty revenue growth from all target end markets – including data center, automotive, smartphones, and IoT – illustrated the momentum we are building across every corner of our business. Licensing revenue of $468 million was down slightly year-over-year, as expected, relative to a strong FYE25 given the normal fluctuations in timing and size of our license agreements and contributions from backlog. Thanks to this strong performance, we exceeded the midpoint of our non-GAAP EPS guidance even while setting new records in R&D investment. Our financial performance is a testament to our disciplined execution and our unwavering commitment to long-term innovation across a broad portfolio of compute technologies.”