ARM Holdings PLC · NASDAQ:ARM
ARM — Q4 FYE26 Earnings Presentation
36 slides from ARM's earnings presentation, May 6, 2026
Slide 1: Arm Holdings plc Q4 FYE26 Investor Presentation
Arm Holdings plc Q4 FYE26 Investor Presentation investor.relations@arm.com https://investors.arm.com May 6, 2026 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that reflect Arm Holdings plc’s (“Arm”) plans, beliefs, expectations and current views with respect to, among other things, future events and financial performance. These statements involve known and unknown risks, unce
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP, Arm utilizes, and this presentation includes, certain non-GAAP financial measures that differ from measures calculated in accordance with GAAP. Arm’s non-GAA
Slide 4: Q4 FYE26: Highlights
Q4 FYE26: Highlights Operating Highlights Innovation Highlights +350bn Arm-based chips shipped $1,490m Cumulative number of Arm-based chips since 1990. Our volume has created a base for the largest Total revenue up 20% YoY ecosystem in the semiconductor industry. Arm AGI CPU introduced for cloud & $
Slide 5: Q4 FYE26: Licensing and royalty revenues
Q4 FYE26: Licensing and royalty revenues • Total revenue: $1,490 up 20% YoY • Royalty revenue: $671 up 11% YoY driven by the continued adoption of Arm technology with higher royalty rates per chip, such as Armv9 architecture and Arm CSS, and increased usage of Arm-based chips in data centers • Licen
Slide 6: Q4 FYE26: Annualized Contract Value
Q4 FYE26: Annualized Contract Value • Annualized contract value, a metric for normalized license and other revenue, increased 22% YoY in Q4 6
Slide 7: Q4 FYE26: From Revenues to Profits
Q4 FYE26: From Revenues to Profits 98% 49% Non-GAAP Non-GAAP Gross Margin Operating Margin $25m $734m License Revenue $819m Royalty Revenue $671m Notes: 1. Depreciation and amortization for Q4 FYE26 was $71m 2. See appendix for reconciliation of Non-GAAP metrics to the most directly comparable GAAP
Slide 8: Near-Term Guidance
Near-Term Guidance Q1 FYE27 Revenue ($m) $1,260bn +/- $50m Non-GAAP Operating Expense ($m)1 ~$760m Non-GAAP fully diluted earnings per share ($)1 $0.40 +/- $0.04 (1) For more information and definitions of the non-GAAP measures see the “Key Financial and Operating Metrics” section of our most recent
Slide 9: Expanding Arm's product mix and market opportunity
Expanding Arm’s product mix and market opportunity 9
Slide 10: Arm has expanded its product mix and market opportunity
Arm has expanded its product mix and market opportunity IP Portfolio CSS Platform Silicon More Armv9 CPUs Higher royalty (2x Armv9 CPU) Product & Market Expansion CPU MMU CPU MMU SECURITY SECURITY SYSTEM IP SYSTEM IP Performance per watt Integrated & validated systems Optimized chip family for cloud
Slide 11: Arm business model: Complementary routes to monetizing compute
Arm business model: Complementary routes to monetizing compute • Arm IP and CSS is licensed to companies designing chips Arm receives an upfront license fee and a royalty on chips that contain its technology • Arm AGI CPU is sold directly to companies building out data centers CPU IP / CSS MODEL Cus
Slide 12: Revenue Growth from industry growth, share gains and richer content
Revenue Growth from industry growth, share gains and richer content More Chips More Share More Arm Gains Technology • Semiconductor industry revenue • More advanced workloads (e.g. has grown at a ~10% CAGR over • Arm is gaining market share in inference and agentic AI) perform past ten years and CPU
Slide 13: Arm's opportunity spans three areas with shared growth drivers
Arm’s opportunity spans three areas with shared growth drivers Each benefit from market growth, share gains, Armv9 & CSS platforms driving royalty rates Cloud AI: Cloud Enterprise Wireless & Edge Driving the infrastructure backbone of AI growth Edge AI: Intelligent Edge Personal AI Computing PCs and
Slide 14: Massive and growing semiconductor content
Massive and growing semiconductor content FYE26 TAM FYE31 TAM $55B $100B+ $35B $50B XPU CLOUD AI $245B $1T+ EDGE AI $180B $250B PHYSICAL AI $25B $50B TOTAL $535B $1.5T+ 14 Future market sizes are Arm’s internal estimates based on third-party research, customer feedback, and management expectations a
Slide 15: Arm AGI CPU expands our opportunity in Cloud AI TAM
Arm AGI CPU expands our opportunity in Cloud AI TAM $2.4B $24B $50B $100B+ IP/CSS only AGI CPU allows Arm to Enlarging customer set Inference and agentic to at least opportunity (FYE26) capture full chip value beyond CSPs double market size in next five years (FYE26) (FYE26) (FYE31) 40x opportunity
Slide 16: Agentic AI changes everything
Agentic AI changes everything Accelerators generate tokens, CPUs orchestrate, agents continuously drive the system • From answers to actions: Agents do not just answer a prompt; they execute workflows AI Data Center AI Data Center asynchronously and continuously. with Agentic AI • >15x more requests
Slide 17: Introducing the first phase of Arm's market expansion
Introducing the first phase of Arm’s market expansion • Customer demand and financial opportunity led to the Arm AGI CPU • Arm AGI CPU built for efficiency, scale and performance • Efficiency: Purpose-built, no legacy overhead, no wasted energy of silicon area • Scale: More cores linearly deliver mo
Slide 18: Landing the Arm AGI CPU business
Landing the Arm AGI CPU business • Began with demand pull from new customers • Arm is uniquely positioned to provide AGI $15B CPU as most of CPU chips are mainly based on Arm IP • FYE28 is expected to be the first year for meaningful Arm AGI CPU revenue • Revenue to ramp exponentially to ~$15B in FY
Slide 19: Royalty revenue growth drivers
Royalty revenue growth drivers • Royalty revenue drivers have been Increasing royalty revenue growth o End market growth o Market share gains o Increasing complexity and more cores per chip o Higher royalty rates from more advanced Arm technology (Armv9, CSS) • Royalty revenue forecast to grow at a
Slide 20: Royalty revenue growth drivers
Royalty revenue growth drivers Technology Improvements Higher Core Count • Arm’s continuing innovation keeps • AI, including agentic AI, is driving need for customers on the leading edge… more cores per chip in the data center… • …and allows Arm to capture more value • … Arm’s royalty scales with co
Slide 21: Royalty revenue – percentage in contract drives high confidence
Royalty revenue – percentage in contract drives high confidence >70% of Arm’s forecasted royalties are based on rates already under contract ~100% ~60% ~85% ~65% 100% ~75% FYE26 FYE27 FYE28 FYE29 FYE30 FYE31 21
Slide 22: Cloud AI will be our fastest growing royalty revenue driver
Cloud AI will be our fastest growing royalty revenue driver Royalty revenue mix in FYE26 Royalty revenue mix in FYE31 (not including Arm AGI CPU family) Physical AI Physical AI Cloud AI Cloud AI Edge AI Edge AI Based on Arm's internal estimates as of March 2026. 22
Slide 23: Robust licensing growth today enables future royalty growth
Robust licensing growth today enables future royalty growth • License revenue growth well ahead of Increasing license revenue prior long-term expectations • License revenue to remain above long-term target in the near-term • And this leads to strong royalty growth in future years FYE26 FYE27 FYE28 F
Slide 24: Arm AGI CPU is complementary to Arm's CPU IP / CSS business
Arm AGI CPU is complementary to Arm's CPU IP / CSS business • Arm AGI CPU expands Arm’s opportunity into an underserved customer base $25B • Revenues from Arm AGI CPU are additional to CPU IP and CSS license and royalty revenue FYE26 FYE27 FYE28 FYE29 FYE30 FYE31 Licensing Royalty Arm AGI CPU FYE26
Slide 25: Critical mass of R&D already hired – increasing operational leverage
Critical mass of R&D already hired – increasing operational leverage • AI creates unprecedented opportunity Non-GAAP operating cost growth decelerating • Our R&D drives a virtuous cycle of new products driving revenue growth • Arm has already meaningfully ramped R&D to support CPU, CSS, and chip roa
Slide 26: Strong revenue and operating profit growth yields >$9 in EPS power
Strong revenue and operating profit growth yields >$9 in EPS power IP/CSS business Arm AGI CPU business Consolidated business in FYE31 in FYE31 in FYE31 IP/CSS revenue Chip revenue $10B $15B Non-GAAP earnings per share Non-GAAP operating margin Non-GAAP operating margin >$9 >65% >30% Based on Arm's
Slide 27: Appendix
Appendix 27
Slide 28: Royalty Revenue: Armv9 adoption is driving royalty growth
Royalty Revenue: Armv9 adoption is driving royalty growth • Armv9 commands a higher royalty per chip than prior architectures • Armv9 adoption has started in smartphones and cloud compute 28
Slide 29: Royalty Revenue: Arm is Gaining Share
Royalty Revenue: Arm is Gaining Share Market Share by Chip Value Notes: Based on Arm internal estimates. Other includes legacy and niche architectures such as: • Proprietary architectures (68000, 80x51, AVR, Coldfire, PIC, PowerPC, RH850, etc.) • Licensable and open-source architectures (Arc, Andes,
Slide 30: Royalty Revenue Provides a Platform for Long-Term Growth
Royalty Revenue Provides a Platform for Long-Term Growth • Royalty revenue can continue for many years or decades Royalty revenue from Arm products launched during Fiscal Year Ending Still collecting royalties on products developed in the early 1990s ~50% of current royalty revenue comes from produc
Slide 31: Gaining share in a massive CPU market
Gaining share in a massive CPU market Market value1 Market share1 FYE22 to FYE25 FYE22 FYE25 MOBILE APPLICATIONS >99% >99% $29bn $40bn OTHER MOBILE Edge AI 70% 70% $18bn $17bn CONSUMER ELECTRONICS 30% 35% $70bn $61bn IoT & EMBEDDED 50% 50% $49bn $45bn CLOUD COMPUTE 3 9% 20% $16bn $25bn Cloud AI NETW
Slide 32: Gaining share in a massive CPU market
Gaining share in a massive CPU market Market value1 Market share1 FYE22 to FYE25 FYE22 FYE25 FYE31 MOBILE APPLICATIONS >99% >99% $29bn $40bn ~$80bn OTHER MOBILE Edge AI 70% 70% $18bn $17bn ~$20bn CONSUMER ELECTRONICS 30% 35% $70bn $61bn ~$70bn IoT & EMBEDDED 50% 50% $49bn $45bn ~$80bn CLOUD COMPUTE
Slide 33: Reconciliations: GAAP to Non-GAAP and Adjustments
Reconciliations: GAAP to Non-GAAP and Adjustments 33
Slide 34: Reconciliations: GAAP to Non-GAAP and Adjustments
Reconciliations: GAAP to Non-GAAP and Adjustments 34
Slide 35: Cash Flow Statement
Cash Flow Statement Three Months Ended March 31, ___Fiseal Year Ended March 31, 2026 3038 2036 2038 (Cash flows provided by (sed fr) operating activin Netincome oss) s 33S 20s aos 19 dja to acnee eincme Go) oat cash previa by Depreciation and amertcation n ° 18 13 Deferred income tes 70 ou 1s ap ‘Gc
Slide 36: Reconciliation: Net cash from operating activities to Non-GAAP free cash flow
Reconciliation: Net cash provided by (used for) operating activities to Non-GAAP free cash flow and Non-GAAP free cash flow TTM 36