ARM
Arm Holdings plc American
Q1 2026 Report
Arm Holdings plc (ARM) Q1 2026 Financial Results: Strong Growth Driven by AI Demand...
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Executive Summary
Arm Holdings plc (ARM) reported a remarkable first quarter of fiscal 2025, achieving a revenue of $939 million, a 39% increase year-over-year and exceeding earlier guidance. The company also saw a significant rise in licensing revenue, which grew 72% YoY, attributed mainly to heightened demand for their technology in AI applications. Management highlighted the robust growth of royalty revenue, which increased by 17% YoY, driven primarily by the adoption of the Armv9 architecture across multiple sectors. Key developments in Q1 include the ongoing expansion of Arm's compute subsystems in mobile and automotive markets, positioning the company favorably for sustained growth amid strong industry demand for efficient processing capabilities.
Key Performance Indicators
Revenue
939.00M
QoQ: 1.19% | YoY:39.11%
Gross Profit
884.50M
94.20% margin
QoQ: 1.90% | YoY:37.34%
Operating Income
182.00M
QoQ: 727.27% | YoY:63.96%
Net Income
223.00M
QoQ: -0.45% | YoY:112.38%
EPS
0.21
QoQ: -4.55% | YoY:110.00%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $939 million (YoY: 39.11%, QoQ: 1.19%) **Gross Profit:** $884.5 million (Gross Margin: 94.20%) **Operating Income:** $182 million (YoY: 63.96%) **Net Income:** $223 million (YoY: 112.38%, EPS: $0.21) **Licensing Revenue Growth:** 72% YoY **Royalty Revenue Growth:** 17% YoY **Operating Margin:** 19.4% **Cash Flow from Operations:** -$290 million (reflecting significant investments) **Total Assets:** $7.88 billion **Total Equity:** $5.66 billion **Current Ratio:** ...