Arm Holdings plc American Depositary Shares Q4 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Arm Holdings Q4 & FY2026 Earnings Summary

Financial Highlights

  • Q4 FY2026 Revenue: $1.49 billion, +20% YoY (record high, above midpoint of guidance). Prior record was ~$1.24 billion.
  • Q4 Licensing Revenue: $819 million, +29% YoY (driven by strong demand for Arm platform and next-gen architectures).
  • Q4 Royalty Revenue: $671 million, +11% YoY (record Q4 figure; Cloud AI/data center more than doubled YoY).
  • Q4 Non-GAAP EPS: $0.60 (record), supported by revenue growth and slightly lower-than-expected OpEx.
  • FY2026 Revenue: $4.92 billion, +23% YoY (third consecutive year of >20% growth).
  • FY2026 Licensing Revenue: $2.31 billion, +25% YoY.
  • FY2026 Royalty Revenue: $2.61 billion, +21% YoY.
  • FY2026 Non-GAAP EPS: $1.77 (record).
  • Non-GAAP Operating Margin (Q4): ~49%; Operating Expenses: $734 million (+30% YoY due to R&D investment but ~$10M below guidance).

Key Business Drivers & Strategic Updates

  • Record results driven by expansion in Cloud AI, Edge AI, and Physical AI. Data center royalty revenue more than doubled YoY for multiple quarters.
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Operator: Good day, and thank you for standing by. Welcome to the Arm Fourth Quarter Fiscal Year 2026 Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jeff Kvaal, Head of Investor Relations. Please go ahead. Jeff Kvaal: Thank you, Sharon, and welcome everyone to our fourth quarter fiscal '26 earnings call. On the call are Rene Haas, Arm's Chief Executive Officer; and Jason Child, Arm's Chief Financial Officer. Today's call contains forward-looking information about the company and its financial results. While these statements represent our best current judgment, our business is subjected to many risks and uncertainties that could cause actual results to differ materially. Important risk factors that may affect our business and future financial results are described in our annual report on Form 20-F filed with the SEC. Arm assumes no obligation to update any forward-looking statements. We will also refer to non-GAAP financial measures during the call. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in our shareholder letter as can a discussion of certain projected non-GAAP financial measures that we are not able to reconcile without unreasonable effort and supplemental financial information. Our earnings materials are available at investors.arm.com. With that, I'll turn the cal
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