Arm Posts Record Q1 Revenue of $1.29B, Up 22%, EPS Beats; Closes DreamBig Acquisition
ARM has more than doubled off its 52-week low of $100.02.
Summary
Arm reported record Q1 FYE27 results with revenue of $1.29B (+22% YoY) and non-GAAP EPS of $0.45, beating guidance. The company closed the DreamBig acquisition and raised a cloud commitment by $305M, underscoring its aggressive growth trajectory.
Key Events · Earnings and Guidance · ARM
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Record Q1 Revenue and Earnings Beat
Total revenue reached $1.29 billion, up 22% year-over-year, with non-GAAP EPS of $0.45 exceeding guidance. License and other revenue grew 23% to $574 million, and royalty revenue rose 22% to $715 million.
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Net Income More Than Doubles
Net income surged to $270 million from $130 million in the prior-year quarter, driven by revenue growth and a $128 million gain from equity investments, primarily in publicly listed companies.
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Operating Cash Flow Nearly Triples
Cash from operations reached $902 million, up from $332 million a year ago, reflecting strong working capital management and higher profitability.
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DreamBig Acquisition Completed
On July 1, 2026, Arm completed the acquisition of DreamBig Semiconductor for approximately $265 million in cash, adding advanced networking technology to its portfolio.
Analysis · ARM · Manufacturing
A standout quarter saw revenue surge 22% to $1.29 billion and non-GAAP EPS reach $0.45, both ahead of expectations. License revenue jumped 23% on strong demand for Arm IP, while royalty revenue grew 22% driven by higher-value Armv9 and CSS adoption and data center expansion. Net income more than doubled to $270 million, and operating cash flow nearly tripled to $902 million. The company also completed the $265 million acquisition of DreamBig, adding advanced networking capabilities, and increased a cloud purchase commitment by $305 million, signaling confidence in future infrastructure needs. The CEO received a one-time performance award tied to ambitious market cap milestones, aligning leadership with long-term value creation. These results reinforce Arm's central role in AI compute from edge to cloud and its expanding silicon strategy.
At the time of this filing, ARM was trading at $219.60 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $260.4B. The 52-week trading range was $100.02 to $452.70. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.