ARM Reports 20% Revenue Growth to $1.49 Billion in Q1 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2026
0mins
Source: stocktwits
- Quarterly Revenue Performance: ARM reported quarterly revenue of $1.49 billion for the period ending March 31, 2026, reflecting a 20% year-over-year growth that surpassed market expectations of $1.47 billion, indicating strong performance in the semiconductor market.
- Royalty and License Revenue: The company achieved licensing revenue of $819 million, up 29% year-over-year, while royalty revenue reached $671 million, growing 11%, demonstrating ARM's sustained growth in customer demand and market share.
- Surge in Chip Demand: ARM anticipates $2 billion in demand for its new in-house datacenter chip for fiscal years 2027 and 2028 combined, double its previous estimate, although it can currently secure supply for only $1 billion, highlighting the strong market demand for high-performance computing.
- Future Outlook and Market Sentiment: The company expects adjusted earnings of $0.40 per share and revenue of $1.26 billion for Q1 2027, with analysts forecasting $1.25 billion, reflecting optimistic market sentiment towards ARM, as its stock has soared 114% year-to-date.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to fall
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 402.710
Low
120.00
Averages
160.58
High
201.00
Current: 402.710
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is a United Kingdom-based company. The Company is engaged in the design of central processing units (CPUs) and compute platforms for semiconductor chips. It develops and licenses CPU products and related technology. Its cloud and data center solutions include Arm AGI CPU and Arm Neoverse Compute Subsystems. The Arm Agentic Generalized Infrastructure (AGI) CPU is a production-ready system on a chip (SoC) for artificial intelligence (AI) data centers, delivering compute at scale. The Arm Neoverse Compute Subsystems (CSS) are pre-validated, performance-optimized compute platforms designed to accelerate infrastructure silicon development. The Company's primary markets include smartphone applications, processors and other chips used in mobile phones, consumer electronics, networking equipment, cloud and data center servers, automotive applications, Internet of Things (loT) and other embedded computing devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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