Monday, 9 November 2026
Silicon Analytica
Every AI story is a chip story.
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Developer of semiconductor intellectual property and processors

Arm Holdings

Latest quarter: Q2 FY2027, ended September 2026

ARM · NasdaqEDA & IP

Compare in Financials

About the company

Arm Holdings designs processor architectures and intellectual property that other companies license to build their own chips. Its CPU designs are used in nearly all smartphones and in a growing share of data-center servers, PCs, cars and IoT devices. Arm earns licence fees when customers gain access to its technology and royalties on each chip shipped that uses it; pre-integrated compute subsystems increase the royalty it earns per chip. Its customers range from smartphone chip designers to hyperscale cloud companies building custom server processors. SoftBank Group owns the large majority of its shares.

Silicon Analytica summary based on the company's latest annual report

Key figures

Q2 FY2027 · 30 Sept 2026

Revenue
▲ +27.1% y/y
Operating income
▲ +23.3% y/y
Gross marginCalc.
−0.4 pp y/y
Operating marginCalc.
−0.4 pp y/y
Net income
▼ −45.4% y/y
Free cash flowCalc.

Figures from company filings. Calculated values marked Calc. · Methodology →

How the company earns its revenue

Includes revenue from related parties, as reported.

$53.1of every $100Royalty revenue$2.6B in FY2026

Total of categories: US$4.9B, reconciles to reported revenue. Different classifications are never added together.

View sources

Quarterly trend

10 available quarters · US GAAP

Revenue, USD (left) · gross margin, % (right) · US GAAPRevenueGross margin$0$500M$1B$1.5B$2BQ1 FY2025Q2 FY2025Q3 FY2025Q4 FY2025Q1 FY2026Q2 FY2026Q3 FY2026Q4 FY2026Q1 FY2027Q2 FY2027Revenue, Q1 FY2025: US$939M (Reported)$939MRevenue, Q2 FY2025: US$844M (Reported)$844MRevenue, Q3 FY2025: US$983M (Reported)$983MRevenue, Q4 FY2025: US$1.2B (Calculated)$1.2BRevenue, Q1 FY2026: US$1.1B (Reported)$1.1BRevenue, Q2 FY2026: US$1.1B (Reported)$1.1BRevenue, Q3 FY2026: US$1.2B (Reported)$1.2BRevenue, Q4 FY2026: US$1.5B (Calculated)$1.5BRevenue, Q1 FY2027: US$1.3B (Reported)$1.3BRevenue, Q2 FY2027: US$1.4B (Reported)$1.4B90%100%Gross margin, Q2 FY2026: 97.4% (Calculated)Gross margin, Q2 FY2027: 97.1% (Calculated)97.1%Source: Arm Holdings quarterly filings and results releases · gross margin = gross profit ÷ revenue, calculated bySilicon AnalyticaSilicon Analyticasiliconanalytica.com/companies/arm
View sources
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated statements of operations, three months ended 2024-06-30 · Q1 FY2025 · published 1 Aug 2024 · covers
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated statements of operations, three months ended 2024-09-30 · Q2 FY2025 · published 7 Nov 2024 · covers
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated statements of operations, three months ended 2024-12-31 · Q3 FY2025 · published 5 Feb 2025 · covers
  • Arm Holdings Form 20-F · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; full year less nine months year-to-date · Q4 FY2025 · published 28 May 2025 · covers
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated statements of operations, three months ended 2025-06-30 · Q1 FY2026 · published 30 Jul 2025 · covers
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated income statements, three months ended 30 Sep 2025 · Q2 FY2026 · published 5 Nov 2025 · covers
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated statements of operations, three months ended 2025-12-31 · Q3 FY2026 · published 4 Feb 2026 · covers
  • Arm Holdings Form 20-F · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; full year less nine months year-to-date · Q4 FY2026 · published 26 May 2026 · covers
  • Arm Holdings Form 6-K · XBRL us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; condensed consolidated statements of operations, three months ended 2026-06-30 · Q1 FY2027 · published 29 Jul 2026 · covers
  • Exhibit 99.2 FYE27 Q2 (30-Sep-26) Shareholder Letter · Condensed consolidated income statements; row 394; value column index 0; read 2026-11-05 · Q2 FY2027 · published 4 Nov 2026 · covers

Guidance vs actual

Guidance is in the shareholder letter, not the results release: Arm Holdings does not give a quantitative revenue outlook for the next quarter in its results release.

Financial statements

Full page →

As filed with the SEC (20-F), from XBRL data. US$ millions, except per-share amounts; shares in millions.

Line itemFY2026To 31 Mar 202620-F ↗FY2025To 31 Mar 202520-F ↗FY2024To 31 Mar 202420-F ↗FY2023To 31 Mar 202320-F ↗FY2022To 31 Mar 202220-F ↗
Revenue4,9204,0073,2332,6792,703
Cost of revenue121121154106131
Gross profit4,7993,8863,0792,5732,572
Gross margin97.5%97.0%95.2%96.0%95.2%
Research & development2,7762,0711,9791,133995
Selling, general & administrative1,115984983762897
Operating income900831111671633
Operating margin18.3%20.7%3.4%25.0%23.4%
Interest & other, net257c−111c101c0c153c
Pre-tax income1,157720212671786
Income tax253−72−94147110
Net income904792306524549
Net margin18.4%19.8%9.5%19.6%20.3%
Diluted EPS0.850.750.290.510.54
Diluted shares1,0681,0631,0441,0281,025

Columns link to the filing. c Calculated by Silicon Analytica from filed figures (hover for the formula); fourth-quarter flows are fiscal year minus nine months. Margins are calculated.

View sources (3)
  1. Arm Holdings 20-F filed 26 May 2026 · accession 0001973239-26-000097
  2. Arm Holdings 20-F filed 28 May 2025 · accession 0001973239-25-000016
  3. Arm Holdings 20-F filed 29 May 2024 · accession 0001973239-24-000012

Values: SEC XBRL company facts (data.sec.gov), refreshed 8 Nov 2026. A period's original filing is used unless a later filing restated it.

Earnings history

Arm Holdings's results by period: revenue, margins and segments from stored filings.

Quarters

Fiscal years

Five-year financial history

US GAAP

Latest 5 completed fiscal years, US GAAP, USD, as reported in annual filings (restated comparatives used where later filings revised them). Ratios and growth are Silicon Analytica calculations from the same records.

Revenue

USD · fiscal years · US GAAP · reported

Revenue (USD)FY2022: US$2.7BUS$2.7BFY202231 Mar 2022FY2023: US$2.7BUS$2.7BFY202331 Mar 2023FY2024: US$3.2BUS$3.2BFY202431 Mar 2024FY2025: US$4.0BUS$4.0BFY202531 Mar 2025FY2026: US$4.9BUS$4.9BFY202631 Mar 2026Silicon AnalyticaArm Holdings Form 20-F filed 2026-05-26

Net income attributable to shareholders

USD · fiscal years · US GAAP · reported

Net income attributable to shareholders (USD)FY2022: US$549MUS$549MFY202231 Mar 2022FY2023: US$524MUS$524MFY202331 Mar 2023FY2024: US$306MUS$306MFY202431 Mar 2024FY2025: US$792MUS$792MFY202531 Mar 2025FY2026: US$904MUS$904MFY202631 Mar 2026Silicon AnalyticaArm Holdings Form 20-F filed 2026-05-26
Arm Holdings annual results
USDFY2022ended 31 Mar 2022FY2023ended 31 Mar 2023FY2024ended 31 Mar 2024FY2025ended 31 Mar 2025FY2026ended 31 Mar 2026
Revenue
Gross profit
Gross margin
Operating income
Operating margin
Net income (attributable)
Diluted EPS
R&D expense
R&D as % of revenue

Business model and industry role

Processor and Graphics IP

The company licenses intellectual property (IP) components, including CPUs and GPUs, for integration into customer products [1].

Compute Subsystems (CSS)

The company offers more integrated compute products such as RTL-based and GDSII-based compute subsystems to provide faster routes to market [1].

Production Silicon Products

The company develops and sells production silicon products, such as the Arm AGI CPU, chiplets, and complete chip solutions [1].

Development Tools

The company's development systems tools business provides tools and software for its architecture [1].

Who buys it

Customers include semiconductor and systems companies, original equipment manufacturers (OEMs), and cloud service providers (CSPs) in the automotive, IoT, enterprise electronics, and mobile and consumer electronics markets 1.

How it earns revenue

The company generates revenue from licensing its products and from royalties on chips that use its products, with royalty revenue per chip generally decreasing as sales volume increases 1.

What it depends on

Demand depends on trends in the semiconductor and electronics industries, the acceptance of its products by systems companies, and compatibility with customer design and manufacturing processes 1.

What drives profitabilityIncludes Silicon Analytica view

Profitability is affected by pricing, product mix, and the ability to offset any price reductions with corresponding increases in sales volume or by reducing costs 1.

Competitive position, drivers and risks

Competitive position

Competitors include established technologies like the x86 architecture, free open-source technologies such as the RISC-V architecture, and semiconductor companies with their own proprietary architectures 1.

Evidence

The market is intensely competitive, with many competitors possessing substantially greater resources 1. Some customers support the competing RISC-V architecture, including through a joint venture announced in August 2023 to accelerate its adoption 1.

Growth drivers and conditions

Company view: To remain competitive, the company must continue to innovate, fund its research and development efforts, and invest in an ecosystem of software and tools for its architecture 1.

Cyclicality and downside risks

Reported: Competitors may use AI tools to convert software from the Arm ISA, customers could use the free, open-source RISC-V architecture instead, and the CPU market may shrink if workloads move to bespoke AI accelerators 1.

What to watch next

  1. Adoption of new production silicon products like the Arm AGI CPU
  2. Competitive pressure from the open-source RISC-V architecture
  3. Potential customer conflicts from entering new product markets
  4. Dependence on a limited number of customers for revenue
  5. Relationship with Arm China and access to the PRC market

Peer comparison

Compare with another company

Peers not yet selected by the editor. Financials compares latest reported periods and labels mismatched period ends.

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Arm Holdings vs Synopsys

More data on Arm Holdings

Arm Holdings income statement and balance sheet

Sources & methodology
  1. Arm Holdings Form 20-F for latest fiscal year ↗ · 26 May 2026 · Item 1 Business / Item 4 Information on the Company; risk factors

Annual and quarterly figures come from the company's SEC filings (XBRL financial data and, where needed, the filed statements). Each value keeps its filing, period dates and accounting basis. Ratios, growth rates, free cash flow, split-adjusted EPS and derived quarters are Silicon Analytica calculations, shown with their inputs. Percentage growth is not shown when the prior value is zero or negative. Guidance is shown only as company guidance; no analyst consensus is used.

Data checks: ✓ 35 passed · ⚠ R&D change FY2024: 74.7% YoY exceeds the 60% review threshold.

AW · Reviewed —