The earnings call highlighted strong growth in revenue, especially in AI and data center segments, and success with CSS licensing. However, there were minor setbacks in licensing revenue and slower-than-expected growth in the smartphone market. Overall, Arm's performance was robust, with a positive outlook driven by increasing demand for AI compute.

Company Guidance -

Q2 2026

During the first quarter of fiscal year 2026, Arm reported its second-highest revenue quarter at $1.05 billion, with a 25% year-on-year increase in royalty revenue, reaching $585 million. Licensing revenue was $468 million, driven by the adoption of Arm's AI platform across various industries. The quarter saw a 40% year-on-year increase in enterprises running AI workloads on Arm Neoverse data center chips, marking a 14x surge since 2021. The company signed three new CSS licenses, doubling its CSS licenses from a year ago, and highlighted the energy efficiency of its technologies, such as NVIDIA Grace Blackwell being 25x more efficient than previous x86-based systems. Arm's ecosystem now includes over 22 million developers, and its software developer base continues to grow, driving demand for its compute platform across markets. The company expects its Neoverse market share among hyperscalers to reach nearly 50% this year. Looking forward, Arm anticipates revenue growth of about 25% year-on-year in the second quarter, with expectations of maintaining both royalties and licensing revenue flat sequentially.

Strong Revenue Performance

Q1 was Arm's second highest revenue quarter at $1.05 billion, with royalty revenue reaching $585 million, up 25% year-on-year.

AI and Data Center Growth

Arm Neoverse data center chips saw a 40% increase in enterprise adoption year-on-year. Arm Neoverse CPUs now power major AI infrastructures like NVIDIA Grace and AWS Graviton.

CSS Licensing Success

Arm signed 3 additional CSS licenses this quarter, resulting in the highest royalty rates to date. Demand for CSS exceeded expectations.

Increased Developer Ecosystem

Over 22 million developers, representing more than 80% of the global base, build on Arm's platform, driving demand for Arm's compute solutions.

Strong Financial Metrics

Non-GAAP operating profit was $412 million with non-GAAP EPS of $0.35, above the midpoint of guidance.

ARM Holdings PLC ADR (ARM) Earnings, Revenues Date & History

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ARM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2025	2026 (Q2)	0.33 / -	0.3	―	―	―
Jul 30, 2025	2026 (Q1)	0.35 / 0.35	0.4	-12.50% (-0.05)
May 07, 2025	2025 (Q4)	0.53 / 0.55	0.36	52.78% (+0.19)
Feb 05, 2025	2025 (Q3)	0.34 / 0.39	0.29	34.48% (+0.10)
Nov 06, 2024	2025 (Q2)	0.26 / 0.30	0.36	-16.67% (-0.06)
Jul 31, 2024	2025 (Q1)	0.34 / 0.40	0.24	66.67% (+0.16)
May 08, 2024	2024 (Q4)	0.30 / 0.36	0.003	11900.00% (+0.36)
Feb 07, 2024	2024 (Q3)	0.25 / 0.29	0.177	63.84% (+0.11)
Nov 08, 2023	2024 (Q2)	0.26 / 0.36	0.11	227.27% (+0.25)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ARM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 30, 2025	$163.32	$141.38	-13.43%
May 07, 2025	$124.19	$116.52	-6.18%
Feb 05, 2025	$173.26	$167.47	-3.34%
Nov 06, 2024	$144.68	$150.65	+4.13%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.