Overview

• Arm reported Q1 FY26 revenue of $1.053 billion, narrowly missing the $1.055 billion estimate and delivering adjusted EPS of $0.35.
• It forecast Q2 revenue of $1.01 billion–$1.11 billion and EPS of $0.29–$0.37, with the profit midpoint below analysts’ 36-cent estimate.
• CEO Rene Haas announced a strategic shift toward developing its own chiplets and full-system solutions beyond its traditional licensing model.
• Shares fell about 8% in after-hours and premarket trading as investors reacted to the muted guidance and potential conflicts with existing chipmaking customers.
• Global trade tensions and U.S. tariff uncertainties are clouding demand in Arm’s core smartphone market.