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Sep 30
ARM Q2 2026 Earnings Report
Arm reported strong revenue growth and profitability in Q2 2026, with record-high royalties and licensing revenues.
Key Takeaways
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.
ARM
ARM
ARM Revenue by Segment
Revenue by Segment
Royalty Revenue
CapyFin.comLicense & Other Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income