Filing Flows › Arm Holdings (ARM) › Q1 FY26
Arm Holdings (ARM) Q1 FY26 earnings results (first quarter fiscal 2026)
6-K filed Jul 30, 2025
Arm Holdings (ARM) reported revenue of $1.1B for the first quarter fiscal 2026 (Q1 FY26), +12% from a year earlier. Operating margin was 10.8%, net earnings $130M (12.3% of revenue).
Arm Holdings, Q1 FY26: revenue $1.1B (+12% year over year), operating margin 10.8%, net earnings $130M, operating cash flow $332M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.1B | — | +12% |
| Gross profit | $1.0B | — | +13% |
| Operating profit | $114M | — | -37% |
| Net earnings | $130M | — | -42% |
| Operating cash flow | $332M | — | — |
| Free cash flow | $178M | — | — |
What changed
Revenue was $1.1B in Q1 FY26, up 12% year over year. Revenue from external customers was the largest line at 69% of revenue. Revenue from related parties added $0.20B year over year (up 165%), 179% of the total change. Basic declined 43%.
Gross margin was 97.2%, up 0.7 points from a year earlier. Operating profit was $0.11B, a 10.8% margin (down 8.6 points year over year). Operating profit fell $0.07B even though revenue rose $0.11B versus a year earlier, so costs grew faster than sales. Operating expenses grew 26% against revenue growth of 12%. The fastest-growing cost line was Research & development (+34%). Net earnings were $0.13B, down 42% year over year. The effective tax rate was 11.0%. Non-operating items added $0.03B, 22% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.33B, 255% of net earnings. Non-cash charges added back $0.06B of depreciation and amortization and $0.24B of share-based compensation. Working capital and other items used $0.10B. Capital expenditures of $0.15B left free cash flow of $0.18B.
Questions
What was Arm Holdings' revenue in the first quarter fiscal 2026?
Arm Holdings (ARM) reported revenue of $1.1B for the first quarter fiscal 2026 (Q1 FY26), +12% from a year earlier.
Was Arm Holdings profitable in the first quarter fiscal 2026?
Operating profit was $114M (10.8% of revenue) and net earnings $130M.
Source: Arm Holdings 6-K on SEC EDGAR.