Filing Flows › Arm Holdings (ARM) › Q1 FY27 › vs Q1 FY26
Arm Holdings (ARM) Q1 FY27 vs Q1 FY26 (year over year)
Arm Holdings's revenue rose $236M (+22%) from $1.1B in Q1 FY26 to $1.3B in Q1 FY27. The biggest changes: Royalty Revenue +$130M (+22%); License and Other Revenue +$106M (+23%). Gross margin 97.2% against 97.2% (+0.1 pts).
Arm Holdings, Q1 FY27: revenue $1.3B (+22% year over year), operating margin 7.1%, net earnings $270M, operating cash flow $902M. The chart draws each line against Q1 FY26, the increases inside each band.
Margins
| Q1 FY27 | Q1 FY26 | Change | |
|---|---|---|---|
| Gross margin | 97.2% | 97.2% | +0.1 pts |
| Operating margin | 7.1% | 10.8% | -3.8 pts |
| Net margin | 20.9% | 12.3% | +8.6 pts |
| Free cash flow margin | 54.7% | 16.9% | +37.8 pts |
Every line
| Line | Q1 FY27 | Q1 FY26 | Change | % |
|---|---|---|---|---|
| Royalty Revenue | $715M | $585M | $130M | +22% |
| License and Other Revenue | $574M | $468M | $106M | +23% |
| Revenue | $1.3B | $1.1B | $236M | +22% |
| Gross profit | $1.3B | $1.0B | $230M | +22% |
| Cost of revenue | $36.0M | $30.0M | $6.0M | +20% |
| Other income, net | $162M | $32.0M | $130M | +406% |
| Operating profit | $91.0M | $114M | −$23.0M | -20% |
| Operating expenses | $1.2B | $909M | $253M | +28% |
| Pre-tax earnings | $253M | $146M | $107M | +73% |
| Research & development | $838M | $650M | $188M | +29% |
| SG&A | $317M | $259M | $58.0M | +22% |
| Income tax benefit | $17.0M | −$16.0M | $33.0M | — |
| Net earnings | $270M | $130M | $140M | +108% |
| Depreciation & amortization | $75.0M | $60.0M | $15.0M | +25% |
| Share-based compensation | $343M | $241M | $102M | +42% |
| Working capital & other | $214M | −$99.0M | $313M | — |
| Operating cash flow | $902M | $332M | $570M | +172% |
| Free cash flow (OCF − capex) | $705M | $178M | $527M | +296% |
| Capital expenditures | $197M | $154M | $43.0M | +28% |
Questions
How much did Arm Holdings's revenue grow year over year in Q1 FY27?
Arm Holdings's revenue rose $236M (+22%) from $1.1B in Q1 FY26 to $1.3B in Q1 FY27.
What drove Arm Holdings's revenue change in Q1 FY27?
Royalty Revenue +$130M (+22%); License and Other Revenue +$106M (+23%).