Ned Raggett from AllMusic stated that the song "has an attractive air to it, with a nicely sweeping chorus, but feels a little too relaxed, not as flat out energetic as it could be."^[1] Larry Flick from Billboard described it as a "sweet midtempo ballad", and noted that Love to Infinity has remixed the tune into "a festive disco anthem that will easily nudge it into the winner's circle of clubland and maybe even pop/crossover radio." He wrote that Andy Bell "is the picture of suave and soulful romance, displaying a mature way with words, while partner Vince Clarke is as shrewd a melody writer as ever."^[2]

Ben Marshall from The Guardian complimented it as "pop at its purest", a "techno-ballad" and "great stuff".^[3] Chris Gerard from Metro Weekly wrote "With lush keyboards and sublime vocal harmonies, 'In My Arms' is one of Erasure's most beautiful singles."^[4] A reviewer from Music Week rated it two out of five, writing, "Rapidly losing their footing in the pop market, Andy and Vince cling to the old formula but, unless this is applied to more immediate pop material, the slide may continue."^[5]

The single peaked at number 13 on the UK Singles Chart and number 76 in Germany — Erasure's lowest-charting single in that country up to that point. In Hungary, it reached number 1, and it was a top 10 hit in Finland. In the United States, it became Erasure's first Billboard Hot 100 entry since 1994's "Always", peaking at number 55. Its remix was a big hit in dance clubs, peaking at number 2 on the US Hot Dance Music/Club Play chart. The song peaked at number 31, their final entry on both the Hot 100 and the Mainstream Top 40 charts.

A music video was produced to promote the single, directed by English music video and film director Dick Carruthers, and filmed on-stage and backstage at the New Theatre Oxford (known as the Apollo Theatre at the time).^[6] It premiered in the UK in January 1997 and was published on Erasure's official YouTube channel in September 2014.