Arm Holdings plc

Q2 FY26Semiconductors and Semiconductor Equipment

Arm Holdings plc Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹335

Market cap₹3.6L Cr

P/E382.4

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

3 of 4 strong

RevenueRank 2

MarginRank 3

CapexYes

Order bookYes

Not discussed on this call: fundraise.

The short version

- Arm projects reaching $15 billion in revenue by fiscal year 2031 driven by AGI CPU and IP businesses (Page 11). - Arm expects to achieve $15 billion in AGI CPU revenue by fiscal year 2031, with an additional $10 billion from IP revenue, totaling $25 billion.

From Arm Holdings plc's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 2

Arm projects reaching $15 billion in revenue by fiscal year 2031 driven by AGI CPU and IP businesses (Page 11).
Demand for Arm AGI CPU has doubled since March 2024 to over $2 billion over the next two years, surpassing previous $1 billion estimates (Page 11).
The IP business with Neoverse IP and CSS doubled year-on-year and is projected to double again, targeting $10 billion by fiscal ’31 (Pages 9,11).
Overall licensing revenue expected to grow at high single-digit to low double-digit rates long-term, with this year targeting 20%+ growth due to AI-related investment (Pages 9,7).
CPU core counts expected to increase significantly (potentially 2x or 4x), driving higher average selling prices and total addressable market growth up to $100-$120 billion over 5 years (Pages 7,9).
Royalty revenues driven by Cloud AI and data center networking are expected to continue strong growth, despite challenges in mobile market (Pages 5,3).

Profitability & Margins

Arm expects to achieve $15 billion in AGI CPU revenue by fiscal year 2031, with an additional $10 billion from IP revenue, totaling $25 billion.
Operating margins: IP business projected to reach ~65% operating/EBITDA margin by 2031; chip business around 35%.
Fiscal 2026 non-GAAP EPS was a record $1.77; Q4 non-GAAP EPS was $0.60.
Q1 guidance projects non-GAAP EPS of $0.40 ± $0.04, with revenues expected to grow ~20% YoY.
Long-term license revenue growth expected at least 10% YoY.
Operating expenses to grow slower than revenue, delivering incremental margin improvement by year-end.
Arm foresees "more than $9 in EPS" by fiscal year 2031 reflecting sustained long-term growth driven by expanding AI demand and product portfolio.
Strong R&D investments underpin future innovation and growth in next-gen architectures and AGI CPU offerings.

See what Arm Holdings plc said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Arm is investing heavily in R&D, with non-GAAP operating expenses up 30% year-on-year, reflecting strong engineering expansion to support demand for next-gen architectures, compute subsystems, and the Arm AGI CPU product family (Page 3).
Significant investments in customer support infrastructure for silicon products, including low-level code, firmware, and hardware support, are baked into OpEx guidance (Page 6).
Arm is leveraging partnerships with foundries and memory suppliers to secure supply chain capacity to meet growing demand, including doubling chip demand for fiscal ’27 and ’28 (Pages 4, 10).
Arm projects the Arm AGI CPU business to grow to $15 billion in revenue by fiscal 2031, contributing to strategic growth (Page 11).
The company expects operating margins of about 65% for the IP business and 35% for the chip business by 2031, with profitability improving as revenue scales (Page 10).

Fundraising & Capital Structure

The transcript on page 11 and surrounding pages does not mention any current or planned fundraising activities through debt or equity.
The focus is on strong revenue growth, with no indication of raising capital via debt or equity markets.
Arm is emphasizing organic growth driven by customer demand, particularly for their Arm AGI CPU and IP business.
There is no discussion of new financing, capital raises, or issuance of shares/debt in this earnings call.
The company is managing growth through operational activities and supply chain efforts rather than through external fundraising.

See what Arm Holdings plc said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

As of March 2024, Arm had $1 billion of demand for AGI CPU products.
Over the subsequent weeks, demand has doubled to over $2 billion for the next two fiscal years (FY ’27 and ’28).
The company is actively working to secure additional supply from foundry and memory partners to meet this increased demand.
Current supply supports $1 billion of demand, with efforts underway to address the $2 billion demand level.
Customers include both existing and new ones, with some increasing forecasts and others newly interested.
Supply chain constraints like wafers and memory availability are being managed to fulfill orders.
First revenues from production chip sales are expected in Q4 of the current fiscal year.
On track to achieve $15 billion in AGI CPU revenue by fiscal 2031.

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Onto Innovation Inc. (Q2 FY26)
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Frequently Asked Questions

What were Arm Holdings plc Q2 FY26 results?

What is Arm Holdings plc share price analysis?

Arm Holdings plc currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 382.4 with a market cap of $356,746. Investors should review the full earnings analysis for detailed insights.

Is Arm Holdings plc planning capital expenditure?

- Arm is investing heavily in R&D, with non-GAAP operating expenses up 30% year-on-year, reflecting strong engineering expansion to support demand for next-gen architectures, compute subsystems, and the Arm AGI CPU product family (Page 3).

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.