Filing Flows › Arm Holdings (ARM) › Q2 FY27 › vs Q2 FY26
Arm Holdings (ARM) Q2 FY27 vs Q2 FY26 (year over year)
Arm Holdings's revenue rose $308M (+27%) from $1.1B in Q2 FY26 to $1.4B in Q2 FY27. The biggest changes: Revenue from external customers +$306M (+43%); Revenue from related parties +$2.0M (+0.5%). Gross margin 97.1% against 97.4% (-0.4 pts).
Arm Holdings, Q2 FY27: revenue $1.4B (+27% year over year), operating margin 13.9%, net earnings $130M, operating cash flow $207M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q2 FY27 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 97.1% | 97.4% | -0.4 pts |
| Operating margin | 13.9% | 14.4% | -0.4 pts |
| Net margin | 9.0% | 21.0% | -12.0 pts |
| Free cash flow margin | 9.4% | 37.8% | -28.4 pts |
Every line
| Line | Q2 FY27 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Revenue from external customers | $1.0B | $713M | $306M | +43% |
| Revenue from related parties | $424M | $422M | $2.0M | +0.5% |
| Revenue | $1.4B | $1.1B | $308M | +27% |
| Gross profit | $1.4B | $1.1B | $295M | +27% |
| Cost of revenue | $42.0M | $29.0M | $13.0M | +45% |
| Other income, net | $7.0M | $139M | −$132M | -95% |
| Operating profit | $201M | $163M | $38.0M | +23% |
| Operating expenses | $1.2B | $943M | $257M | +27% |
| Pre-tax earnings | $208M | $302M | −$94.0M | -31% |
| Research & development | $857M | $691M | $166M | +24% |
| SG&A | $343M | $252M | $91.0M | +36% |
| Net earnings | $130M | $238M | −$108M | -45% |
| Income tax | $78.0M | $64.0M | $14.0M | +22% |
| Operating cash sources | $587M | $558M | $29.0M | +5% |
| Depreciation & amortization | $81.0M | $55.0M | $26.0M | +47% |
| Share-based compensation | $376M | $265M | $111M | +42% |
| Working capital & other | $380M | −$9.0M | $389M | — |
| Operating cash flow | $207M | $567M | −$360M | -63% |
| Free cash flow (OCF − capex) | $135M | $429M | −$294M | -69% |
| Capital expenditures | $72.0M | $138M | −$66.0M | -48% |
Questions
How much did Arm Holdings's revenue grow year over year in Q2 FY27?
Arm Holdings's revenue rose $308M (+27%) from $1.1B in Q2 FY26 to $1.4B in Q2 FY27.
What drove Arm Holdings's revenue change in Q2 FY27?
Revenue from external customers +$306M (+43%); Revenue from related parties +$2.0M (+0.5%).