The earnings call reflects a strong performance for Arm, with robust growth in AI workloads and data centers, record royalty revenue, and successful collaborations with major tech companies. While there were minor challenges such as a slight decline in licensing revenue and below-expected smartphone sector growth, the overall outlook remains positive with high confidence in continued growth.

Company Guidance

During Arm's first quarter fiscal year 2026 earnings call, the company reported a strong performance with a revenue of $1.05 billion, marking it as their second highest revenue quarter. Royalty revenue increased by 25% year-on-year to $585 million, with significant growth across all end markets, including smartphones, data centers, automotive, and IoT. Licensing revenue reached $468 million, driven by continued adoption of Arm's AI platform. The company's Neoverse data center chips witnessed a 40% year-on-year increase in enterprise usage, now powering significant AI infrastructures. Arm's market share in Neo-based chips for hyperscalers is expected to reach nearly 50% this year. In terms of guidance, Arm anticipates Q2 revenue between $1.01 billion and $1.11 billion, reflecting approximately 25% year-on-year growth. They plan to accelerate R&D investments to support their technology advancements and maintain momentum in AI compute demand. Non-GAAP operating expenses for Q2 are projected to be around $655 million, with non-GAAP EPS ranging from $0.29 to $0.37.

Strong Q1 Revenue Performance

Q1 revenue was $1.05 billion, marking the second highest revenue quarter for Arm. Royalty revenue reached $585 million, up 25% year-on-year.

AI and Data Center Growth

Arm Neoverse data center chips saw a 40% increase year-on-year in AI workloads, with market share expected to reach nearly 50% among hyperscalers.

Record Royalty Revenue

Royalty revenue grew to a Q1 record of $585 million, with significant growth across end markets such as smartphones, data center, automotive, and IoT.

CSS and Licensing Achievements

Three new CSS deals were closed, including two for data centers and one for PCs, more than doubling CSS licenses from the previous year.

AI Ecosystem and Developer Community

Over 22 million developers, representing more than 80% of the global base, are building on Arm, driving demand for its compute platform.

Collaborations with Major Tech Companies

Technology leaders such as NVIDIA, AWS, Google, Microsoft, Apple, Samsung, and MediaTek are integrating Arm capabilities into their products.

Positive Outlook and Guidance

Guidance for Q2 projects revenue between $1.01 billion and $1.11 billion, with expectations of continued healthy growth in the coming year.

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.