Arm Holdings plc SoftBank Investor Briefing
Jason Child
Chief Financial Officer
May 2026
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Nomenclature difference between Arm and SoftBank Group
Fiscal year ending March 31, 2026 Fiscal year ending March 31, 2026
FY2025 FYE26
Q4 FYE26: From Revenues to Profits
98%
Non-GAAP
Gross Margin
49%
Non-GAAP
Operating Margin
$734m
License
Revenue
$819m
Royalty
Revenue
$671m
$25m
Notes:
Depreciation and amortization for Q4 FYE26 was $71m
See Arm's website for reconciliation of Non-GAAP metrics to the most directly comparable GAAP metrics.
Near-Term Guidance
Q1 FYE27 | |
Revenue ($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 Shareholder Letter, available at https://investors.arm.com/. A reconciliation of each of the projected non-GAAP operating expense and non-GAAP fully diluted earnings per share, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because Arm is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.
© 2025 Arm 5
Arm has expanded its product mix and market opportunity
IP Portfolio
More Armv9 CPUs
CSS Platform
Higher royalty (2x Armv9 CPU)
Silicon
Product & Market Expansion
CP U
MMU
S E C U R I T Y
SY ST E M I P
MMU
CP U
S E C U R I T Y
SY ST E M I P
Performance per watt
Integrated & validated systems
Optimized chip family
for cloud and AI data centers
Customer demand and financial opportunity led to the Arm AGI CPU
Introducing the first phase of Arm's market expansion
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 more performance, memory and IO keep pace
- Performance: More work per cycle through efficient architecture, full-performance always available
Massive and growing semiconductor content
FYE26 TAM | FYE31 TAM | |
CLOUD AI | $35B $50B $245B | $55B $100B+ XPU $1T+ |
EDGE AI | $180B | $250B |
PHYSICAL AI | $25B | $50B |
TOTAL | $535B | $1.5T+ |
Arm AGI CPU is complementary to Arm's CPU IP / CSS business
$25B
FYE26
FYE27
FYE28
FYE29
FYE30
FYE31
Licensing
Royalty
Arm AGI CPU
FYE26 financial figures assume we achieve the mid-point of guidance provided on Feb 4, 2026, at Arm's Q3 results.
Arm AGI CPU expands Arm's opportunity into an underserved customer base
Revenues from Arm AGI CPU are additional to CPU IP and CSS license and royalty revenue
Strong revenue and operating profit growth yields >$9 in EPS power
Non-GAAP
earnings per share
>$9
Non-GAAP
operating margin
>65%
Non-GAAP
operating margin
>30%
Chip revenue
$15B
IP/CSS business in FYE31
Arm AGI CPU business in FYE31
Consolidated business in FYE31
IP/CSS revenue
$10B
To be replace d
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