Arm Holdings plc American Depositary Shares

Q4 fiscal 2026 revenue was $1.49 billion, up 20% year over year, above the midpoint of guidance. Licensing revenue was $819 million, up 29% year over year; royalty revenue was $671 million, up 11%. Non-GAAP EPS was $0.60, and non-GAAP operating income was $731 million with a non-GAAP operating margin of about 49%. For the full fiscal year, revenue was $4.92 billion, up 23% year over year, and non-GAAP EPS was $1.77. For Q1, Arm guided to revenue of $1.26 billion plus or minus $50 million, about 20% year-over-year growth at the midpoint, with royalty revenue and license and other revenue each expected to grow around 20% year over year. It also guided to non-GAAP operating expense of about $760 million and non-GAAP EPS of $0.40 plus or minus $0.04.

Rene Haas framed the quarter as proof that Arm is becoming more central to AI infrastructure, especially in the data center. He emphasized that Arm now has more than $2 billion of customer demand for the AGI CPU across fiscal 2027 and fiscal 2028, versus $1 billion at launch, and said the company is building a second growth vector by adding silicon alongside IP and CSS. His tone was highly confident and expansive, repeatedly pointing to a large AI compute opportunity and saying the direction is for customers to use Arm at the center of the AI data center and eventually across edge and physical AI as well.

Jason Child highlighted the hard numbers behind the quarter: revenue of $1.49 billion, royalty revenue of $671 million, license revenue of $819 million, operating income of $731 million and operating margin of about 49%. He said non-GAAP operating expenses were $734 million, about $10 million below guidance, while still up 30% year over year due to R&D investment. On the AGI CPU, he said first production revenues are still expected in the fourth quarter of this fiscal year, the initial revenue target remains $1 billion while supply is secured, and the chip business is already reflected in the company’s expense plan. He also guided Q1 revenue to $1.26 billion plus or minus $50 million and said OpEx should be about $760 million.

Analysts focused on the jump in AGI CPU demand, how Arm is securing supply, and whether the new silicon business could create tension with existing IP customers. Management said much of the demand is coming from customers already using Arm who can adopt quickly through finished racks, and from new customers eager to deploy; Jason Child said supply is being worked through with foundry, memory, packaging and test partners. On the partner-tension question, Rene Haas said Arm sought ecosystem support ahead of launch and received it from all major partners, arguing that more Arm-based silicon increases software adoption and strengthens the platform rather than cannibalizing it.