ARM Q3 2026 Earnings Report — Arm Holdings plc American Depositary Shares Revenue & Financial Results | Market Cap Arena

Arm Holdings plc American Depositary SharesARM

Q3 2026 Earnings

Reported February 4, 2026

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2026	Q2 2026	Q3 2025	QoQ Change	YoY Change
Revenue	$1.2B	$1.1B	$983M	9.4%	26.3%
Op. Income	$191M	$163M	$175M	17.2%	9.1%
Gross Margin	94.2%	97.4%	94.8%	-3.2pp	-0.6pp
Net Margin	18.0%	21.0%	25.6%	-3.0pp	-7.7pp
EPS (Diluted)	$0.21	$0.22	$0.24	-4.5%	-12.5%
Free Cash Flow	$186M	$429M	$360M	-56.6%	-48.3%

Revenue Flow

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$72M
GROSS PROFIT	$1.2B
R&D Expenses	$737M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$263M
Other Expenses	-$21M
Operating Expenses	$979M
Cost & Expenses	$1.1B
OPERATING INCOME	$191M
Interest Income	$29M
Interest Expense	$0
Other Income/Expenses	$37M
INCOME BEFORE TAX	$228M
Income Tax Expense	$5M
Net Income from Continuing Ops	$223M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$223M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$223M
D&A	$63M
EBIT	$228M
EBITDA	$291M
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$1.2B
Cost of Revenue	$72M
GROSS PROFIT	$1.2B
R&D Expenses	$737M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$263M
Other Expenses	-$21M
Operating Expenses	$979M
Cost & Expenses	$1.1B
OPERATING INCOME	$191M
Interest Income	$29M
Interest Expense	$0
Other Income/Expenses	$37M
INCOME BEFORE TAX	$228M
Income Tax Expense	$5M
Net Income from Continuing Ops	$223M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$223M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$223M
D&A	$63M
EBIT	$228M
EBITDA	$291M
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$223M
Depreciation & Amortization	$63M
Stock-Based Compensation	$0
Deferred Income Tax	-$29M
Other Non-Cash Items	$287M
Change in Working Capital	-$179M
OPERATING CASH FLOW	$365M
Capital Expenditure	-$179M
Acquisitions (Net)	$0
Purchases of Investments	-$331M
Sales/Maturities of Investments	$524M
Other Investing Activities	$43M
NET CASH FROM INVESTING	$52M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	$0
Other Financing Activities	-$130M
NET CASH FROM FINANCING	-$130M
FREE CASH FLOW	$186M
Net Change in Cash	$289M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.8B
Short-Term Investments	$735M
Net Receivables	$2.0B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$5.7B
PP&E (Net)	$1.2B
Goodwill	$1.6B
Intangible Assets	$240M
Long-Term Investments	$681M
Tax Assets	$439M
Other Non-Current Assets	$266M
TOTAL NON-CURRENT ASSETS	$4.4B
TOTAL ASSETS	$10.2B
Account Payables	$78M
Short-Term Debt	$64M
Deferred Revenue	$331M
Other Current Liabilities	$202M
TOTAL CURRENT LIABILITIES	$1.1B
Long-Term Debt	$397M
Deferred Revenue NC	$720M
Deferred Tax Liabilities	$6M
Other Non-Current Liabilities	-$199M
TOTAL NON-CURRENT LIABILITIES	$1.3B
TOTAL LIABILITIES	$2.4B
Common Stock	$2M
Additional Paid-In Capital	$3.3B
Retained Earnings	$4.1B
Treasury Stock	$0
Accum. Other Comp. Income	$389M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.8B
Minority Interest	$0
TOTAL EQUITY	$7.8B
TOTAL LIABILITIES & EQUITY	$10.2B
Total Debt	$858M
Net Debt	-$1.9B