NASDAQ$ARM

ARM Holdings PLC · Q2 2026 earnings

Q2 2026 earnings · · After market close · Investor relations

Briefing

Arm reported strong revenue growth and profitability in Q2 2026, with record-high royalties and licensing revenues.

Arm exceeded $1.3 billion in revenue for the third consecutive quarter and posted a net income of $238 million, supported by continued demand for its processor IP and AI-powered solutions.

  • Total revenue reached $1.343 billion, a 28% year-over-year increase.
  • Adjusted EPS came in at $0.36, exceeding guidance.
  • Net income was $238 million, compared to $104 million a year ago.
  • Strong performance driven by adoption of Armv9 and AI workloads across cloud and edge devices.

Headline financials

Total Revenue

$1.34B

Previous: $844M+59.1%
EPS (adj)

$0.36

Previous: $0.30+20.0%
ACV

$2.7B

No prior period
RPO

$2.24B

No prior period
Total Access Licenses

392

No prior period
Capital Expenditures

-$140M

Previous: -$60M-133.3%
Net Income

$238M

Previous: $107M+122.4%
Operating Income

$195M

Previous: $64M+204.7%
Gross Profit

$1.15B

Previous: $768M+49.2%
R&D Expense

$691M

Previous: $507M+36.3%

Revenue & EPS history

ARM · Revenue · Quarterly

$1.34B

Q2 2026+59.1%vs Q2 2025
Beat estimate in 8 of 9 quarters(89%)
ActualEstimate

Forward guidance

Arm expects Q3 revenue between $1.225B and $1.275B and non-GAAP EPS between $0.41 and $0.45, supported by sustained demand for its technology across key markets.

Tailwinds

  • Revenue guidance implies continued growth momentum.
  • High customer demand for Armv9 and AI acceleration solutions.
  • Strength in cloud and automotive markets.
  • Expansion in customer base using advanced-node chips.
  • Operational leverage supporting margin improvement.

Headwinds

  • License revenue may face quarterly fluctuations.
  • Geopolitical risks in international markets.
  • Potential macroeconomic headwinds impacting tech spending.
  • High R&D investment may pressure margins in short term.
  • Currency exchange rate volatility could impact results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q2 2026

Historical avgQ2 2026

+3.5%

Avg return

Earnings day

+7.2%

Avg return

5 days after

+17.5%

Avg return

30 days after

29%

4 / 14 earnings

Positive

+56.1%

Q3 2024

Best reaction

-21.3%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-9.0%-12.8%+44.6%
Q3 2026+5.7%+20.1%+9.0%
Q2 2026-3.2%-6.5%-11.8%
FY 2025-5.9%-16.0%-15.3%
Q3 2025-3.3%-9.0%-27.5%
Q2 2025+7.1%+0.9%+0.2%
Q1 2024-21.3%-21.3%-7.8%
Q1 2025-8.6%-16.9%-0.1%
Q4 2022-3.4%+1.7%+31.0%
Q4 2024-3.9%+8.7%+26.7%
Q3 2023+49.6%+55.8%+70.7%
Q3 2024+56.1%+104.1%+80.2%
Q2 2023-3.9%-1.8%+23.6%
Q2 2024-6.7%-6.5%+21.6%
Q4 2023
Q1 2023

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