Arm delivered strong Q1 results for fiscal 2026 with $1.05 billion in revenue, marking a record for a first quarter. Royalty revenue saw a 25% increase year-over-year, while licensing declined slightly. Non-GAAP EPS came in at $0.35, reflecting healthy operating leverage and growth across the AI and data center segments.
Total revenue reached $1.053 billion, up 12% year-over-year.
Royalty revenue hit $585 million, a 25% increase from the prior year.
Non-GAAP EPS was $0.35, exceeding guidance midpoint.
Free cash flow was $150 million, with strong operating cash flow of $332 million.
Arm guided Q2 FYE26 revenue between $1.01 billion and $1.11 billion with continued investment in R&D and CSS. Expected non-GAAP EPS ranges from $0.29 to $0.37.
Visualization of income flow from segment revenue to net income