Arm (ARM) Q4 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 12:24 PM CDT 36 min read

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DATE

Wednesday, May 6, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Rene Haas

• Chief Financial Officer — Jason Child

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Full Conference Call Transcript

Rene Haas: Thank you, Jeff, and welcome, everyone. Arm delivered a grounds 4th and grounds fiscal year. Revenue this 4th was $1.49 billion, up 20%, our highest quarterly gross 4th ever and supra the midpoint of our guidance. Licensing gross grew 29% year-over-year to $819 million, driven by beardown request for the Arm platform. Royalty gross grew 11% to $671 million, with maturation crossed Edge AI, Physical AI and Cloud AI, wherever our information halfway royalty has much than doubled year-over-year. That drove grounds non-GAAP EPS of $0.60, adjacent portion we proceed to summation concern successful R&D. For the afloat year, gross reached a grounds $4.92 billion, up 23% year-on-year.

Royalty gross was up $2.61 billion, up 21% and licensing gross was $2.31 billion, up 25%. Non-GAAP EPS was besides a grounds astatine $1.77. Fiscal 2026 was our 3rd consecutive twelvemonth since going nationalist of much than 20% gross growth, demonstrating the spot of our concern and the expanding relevance of Arm successful the highest maturation areas of compute. This 4th was driven by cardinal highlights, including the enlargement of Arm's merchandise strategy and our continued momentum successful Cloud AI. As AI is moving from human-based queries to continuous agent-driven workloads, this displacement is expanding the relation of the CPU. These Agentic workloads necessitate CPUs to coordinate tasks, determination data, negociate memory, enforce information and orchestrate workaround accelerators.

As Agentic AI scales, information centers volition necessitate much than 4x today's CPU capacity, creating a information halfway CPU marketplace accidental of much than $100 cardinal by 2030. The Arm AGI CPU, which we launched astatine our Arm Everywhere lawsuit past 4th and is purpose-built for Agentic AI addresses this request directly. Our archetypal accumulation silicon merchandise for the information halfway volition present much than 2x the show per rack compared with x86 platforms with the imaginable to trim AI information halfway superior expenditure by up to $10 cardinal per gigawatt. Meta is our pb spouse and co-developer and is moving with america connected a multi-generation roadworthy representation to enactment idiosyncratic ace quality for much than 3 cardinal users.

The Arm AGI CPU expands however customers tin enactment with Arm. Customers tin present deploy Arm compute done IP, compute subsystems oregon silicon. One compute platform, 1 bundle ecosystem. That is unsocial to Arm. IP and CSS stay the instauration of our royalty growth. Silicon extends the Arm level and gives customers different mode to physique AI infrastructure. Ecosystem enactment has been significant. More than 50 starring companies are supporting the enlargement of the ARM compute level into silicon, including the precise biggest names successful the industry. Customer effect to the Arm AGI CPU has been precise strong. We present person much than $2 cardinal of lawsuit request crossed fiscal 2027 and fiscal 2028.