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Arm Stock Today (ARM): Q2 FY26 Beat and Upbeat Q3 Outlook Lift Shares — November 5, 2025

by
5 November 2025

TL;DR

  • Arm beat expectations for fiscal Q2 FY26 and guided above consensus for Q3, citing AI-driven demand. [1]
  • Shares closed near $160 and moved higher after hours following the release. [2]
  • Management’s call is scheduled for 5:00 p.m. ET today; a shareholder letter and materials are posted. [3]

Price Action (Nov. 5, 2025)

Arm (ARM) finished regular trading around $160.29 (-0.27%) and traded near $163–164 (+~2%) in early after-hours shortly after results crossed the wire (around 4:09 p.m. ET). Levels were volatile as headlines hit. [4]

By the Numbers — Q2 FY26 Results (quarter ended Sept. 30)

  • Revenue:$1.14B, +34% y/y (consensus ~$1.06B).
  • Adj. EPS:$0.39 (consensus $0.33).
  • Royalty revenue:$620M, +21% y/y.
  • Licensing revenue:$515M, +56% y/y (timing of high‑value contracts).
    These figures came alongside commentary that AI compute demand—and power efficiency constraints—are tailwinds for Arm’s architecture (“the bottleneck is power,” CEO Rene Haas told Reuters). [5]

Outlook — Q3 FY26 (current quarter)

  • Revenue guidance (midpoint): $1.23B, ahead of the ~$1.10B analyst average cited by LSEG. Shares initially spiked on the outlook before paring gains in extended trading. [6]

What’s Driving the Story Today

  • AI everywhere: Management continues to point to AI workloads in data centers, along with momentum in smartphones and auto. After the report, Arm reiterated that growth spans its target markets. [7]
  • Company disclosures worth noting: In its shareholder materials, Arm highlights steady adoption of Compute Subsystems (CSS) and says it signed three new CSS licenses in Q2, bringing the total to 19 across 11 companies (including plans for Samsung to leverage CSS for Exynos). Treat these as company claims until independently verified. [8]

Key Chart & Comparative Context

  • The live chart above shows today’s session and the immediate after-hours reaction.
  • For high-level performance context, ARM shares are up roughly the high‑20%s year to date as of today’s trade. (Exact YTD figure varies intraday; MarketWatch’s dashboard showed ~28% YTD earlier today.) [9]

What to Watch on Today’s Call (5:00 p.m. ET)

  • Royalty mix & Armv9 uplift: How much of the royalty growth is tied to newer Armv9‑based designs with higher rates? [10]
  • Licensing cadence: Management said Q2 licensing strength reflected timing of large deals—does Q3 guide embed a normalization? [11]
  • Data center traction: Any quantified updates on Arm’s share with top hyperscalers and new CSS wins (the company cites momentum in its materials). [12]
  • Expense trajectory: With investment in platform and potential “finished chips”/CSS efforts, how should investors think about opex vs. revenue growth into FY26–FY27? (Background from prior disclosures.) [13]
  • Call logistics: Audio webcast is scheduled for 5:00 p.m. ET (2:00 p.m. PT / 22:00 GMT) with materials on the investor site. [14]

Quick News Roll‑Up — Nov. 5, 2025

  • Earnings headline: Arm beats on Q2, guides above Street for Q3; shares rise after hours. (Reuters) [15]
  • After-hours snapshot:+~2% shortly after the print; closing price near $160.29. (MarketBeat) [16]
  • Follow‑on coverage: Financial media noted the beat-and-raise setup with shares moving higher post‑close. (Barron’s live update) [17]
  • Company post: Arm published Q2 FY26 shareholder materials and confirmed today’s 5:00 p.m. ET call. [18]

Why It Matters

Arm’s business model—up‑front licenses + per‑chip royalties—gives it broad exposure to AI’s spread from phones to data centers. Today’s results show royalty growth alongside outsized licensing in the quarter, and guidance implies continued demand into Q3. The near‑term debate: how durable is licensing strength, and how quickly do higher‑royalty designs (like Armv9) scale in data centers and flagship devices? [19]

Source Notes

  • Core financials and guidance are from Reuters’ Nov. 5 coverage, which also cites LSEG consensus and includes a CEO interview. [20]
  • After-hours pricing/close reference from MarketBeat’s real‑time dashboard shortly after the release. [21]
  • Call time / company disclosures pulled from Arm’s newsroom posts published today. [22]

Disclosure: This article is for informational purposes only and is not investment advice. Prices and percentages refer to Nov. 5, 2025 and may have changed since publication.

Arm Holdings CEO: We project by end of year, Arm's market share in data centers will be 50%
Watch this video on YouTube.

References

1. www.reuters.com, 2. www.marketbeat.com, 3. newsroom.arm.com, 4. www.marketbeat.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. newsroom.arm.com, 9. www.marketwatch.com, 10. www.reuters.com, 11. www.reuters.com, 12. newsroom.arm.com, 13. www.reuters.com, 14. newsroom.arm.com, 15. www.reuters.com, 16. www.marketbeat.com, 17. www.barrons.com, 18. newsroom.arm.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.marketbeat.com, 22. newsroom.arm.com

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CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

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Stock Market Today

  • Three Stocks Added to Zacks Rank #5 Strong Sell List for Nov. 7
    November 7, 2025, 7:22 AM EST. Three names were added to Zacks Rank #5 (Strong Sell) today: DraftKings Inc. (DKNG), Farmer Bros. Co. (FARM), and Golden Entertainment, Inc. (GDEN). Each stock has seen its current-year earnings estimate trimmed over the past 60 days: DKNG down 22.1%, FARM down 7.3%, and GDEN down 16.2%. The article highlights the continued impact of earnings downgrades and the protective caution signs associated with a Zacks Rank #5 rating. Readers are encouraged to review the full Strong Sell list and related analyst commentary before making decisions. Note that market opinions vary and past performance is not indicative of future results.
  • Gannett Earnings: Caution Over Unusual Items and Tax Benefits
    November 7, 2025, 7:20 AM EST. Gannett's latest earnings beat might reassure shareholders, but our analysis flags several caveats. The last twelve months' statutory profit benefited from significant unusual items and a rare tax benefit, which can overstate underlying profitability. Historical patterns suggest such boosts may not repeat, potentially eroding next year's earnings power. Gannett also posted a sizable tax credit in the latest period, a one-off that may not recur. Taken together, these factors imply that the reported profits could be of low quality and risk giving an overly optimistic view. We identify warning signs that deserve attention before investing, and we caution readers to consider core operating trends alongside headline numbers.
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    November 7, 2025, 7:18 AM EST. Markets retreated as the S&P 500 and Dow slipped and the Nasdaq shed about 2%, while the VIX jumped more than 9%, signaling continued turbulence. Apollo chief economist Torsten Sløk argues the S&P sits at historically extreme valuations using the Buffett indicator and the Shiller CAPE, with 2025 an especially conspicuous outlier. Some Wall Street voices warn of a reckoning, with Morgan Stanley and Goldman Sachs CEOs predicting a potential 20% selloff over the next two years. UBS's Mark Haefele says the pullback is unlikely to stem from valuations alone, but could come as earnings expectations weaken; he sees robust earnings growth this year (about 10% for S&P 500 EPS) and roughly 7.5% next year. AI capex remains a key driver of valuations, raising questions about future gains and the pace of productivity improvements, per Lisa Shalett.
  • Nasdaq Dives to Two-Week Low as AMD and Palantir Lead Tech Selloff
    November 7, 2025, 7:16 AM EST. The Nasdaq Composite tumbled about 1.8% to a fresh two-week low as investors rotated away from high-growth tech names. The Nasdaq-100 also declined, with most components in negative territory. Advanced Micro Devices fell 6.6% on concerns about slowing data-center chip demand and intensified AI hardware competition, trimming part of its rally after solid Q3 guidance. Palantir Technologies dropped 6.4%, pulling back after a sharp YTD climb as investors lock in profits amid broader market weakness. Risk-off sentiment weighed on AI names that powered 2025 gains. Traders are awaiting upcoming inflation data and Fed commentary for signs whether this pullback is a pause or the start of a deeper correction.
  • Village Farms International (VFF) posts 235% one-year gain; revenue up 42%, profitability unresolved
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