Filing Flows › Arm Holdings (ARM) › Q1 FY27
Arm Holdings (ARM) Q1 FY27 earnings results (first quarter fiscal 2027)
6-K filed Jul 29, 2026
Arm Holdings (ARM) reported revenue of $1.3B for the first quarter fiscal 2027 (Q1 FY27), +22% from a year earlier. Operating margin was 7.1%, net earnings $270M (20.9% of revenue).
Arm Holdings, Q1 FY27: revenue $1.3B (+22% year over year), operating margin 7.1%, net earnings $270M, operating cash flow $902M. The chart follows the revenue to costs, profit and cash.
| Q1 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | — | +22% |
| Gross profit | $1.3B | — | +22% |
| Operating profit | $91.0M | — | -20% |
| Net earnings | $270M | — | +108% |
| Operating cash flow | $902M | — | +172% |
| Free cash flow | $705M | — | +296% |
What changed
Revenue was $1.3B in Q1 FY27, up 22% year over year. Royalty Revenue was the largest line at 55% of revenue. Royalty Revenue added $0.13B year over year (up 22%), 55% of the total change.
Gross margin was 97.2%, up 0.1 points from Q1 FY26. Operating profit was $0.09B, a 7.1% margin (down 3.8 points year over year). Operating profit fell $0.02B even though revenue rose $0.24B versus Q1 FY26, so costs grew faster than sales. Operating expenses grew 28% against revenue growth of 22%. The fastest-growing cost line was Research & development (+29%). Net earnings were $0.27B, up 108% year over year. The effective tax rate was -6.7%. Non-operating items added $0.16B, 64% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.90B (up 172% year over year), 334% of net earnings. Non-cash charges added back $0.07B of depreciation and amortization and $0.34B of share-based compensation. Working capital and other items added $0.21B. Capital expenditures of $0.20B left free cash flow of $0.70B.
Questions
What was Arm Holdings' revenue in the first quarter fiscal 2027?
Arm Holdings (ARM) reported revenue of $1.3B for the first quarter fiscal 2027 (Q1 FY27), +22% from a year earlier.
Was Arm Holdings profitable in the first quarter fiscal 2027?
Operating profit was $91.0M (7.1% of revenue) and net earnings $270M.
Source: Arm Holdings 6-K on SEC EDGAR.