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
In Q4 2025, Arm Holdings plc achieved its first-ever revenue exceeding $1 billion in a single quarter, recording total revenues of $1.24 billion, reflecting a robust 33.73% year-on-year growth. Revenue from royalties reached $607 million, up 18% year-on-year, showcasing the increasing demand for Arm's power-efficient AI compute technology across multiple sectors, including data centers, smartphones, automotive, and IoT. Management emphasized the strength of their diversification strategy, with licensing revenue surging 50% year-on-year to $634 million, underpinned by new partnerships, including a significant multi-year AI agreement with the Malaysian government. Despite macroeconomic uncertainties, Arm's performance indicates strong fundamentals and a positive outlook for sustained growth.
Key Performance Indicators
Revenue
1.24B
QoQ: 26.25% | YoY:33.73%
Gross Profit
1.19B
95.77% margin
QoQ: 24.45% | YoY:36.92%
Operating Income
410.00M
QoQ: 134.29% | YoY:1 763.64%
Net Income
210.00M
QoQ: -16.67% | YoY:-6.25%
EPS
0.20
QoQ: -17.08% | YoY:-9.55%
Revenue Trend
Margin Analysis
Key Insights
- Q4 2025 Total Revenue: $1.24 billion (33.73% YoY growth, 26.25% QoQ growth)
- Royalty Revenue: $607 million (18% YoY growth)
- Licensing Revenue: $634 million (up 50% YoY)
- Gross Profit: $1.19 billion with a gross profit margin of 95.77%
- Operating Income: $410 million with an operating profit margin of 33.04%