Global Finance News
05 Nov 2026, 09:22
Arm Revenue Jumps 27% as Licensing Growth and Data Center Demand Accelerate
Arm Holdings (NASDAQ: ARM) reported record fiscal second-quarter revenue of $1.44 billion, up 27% year over year, marking its fifth consecutive quarter of revenue growth above 20%. License and other revenue surged 50% to $773 million, while royalty revenue increased 8% to $670 million.
Non-GAAP operating income rose to $638 million from $467 million a year earlier, while non-GAAP operating margin expanded to 44.2% from 41.1%. Non-GAAP diluted EPS increased 33% to $0.52.
Data center demand remained a major growth driver. Arm said data center royalties doubled year over year, while its server market share at leading hyperscalers rose from 15% in 2024 to more than 50% in 2025 and is expected to exceed 60% by the end of 2026.
Arm also highlighted strong demand for its new AGI CPU business. The company has secured purchase orders from multiple customers through 2027 and said confidence has increased in generating up to $2 billion of AGI CPU revenue across fiscal 2027 and 2028.
For fiscal Q3 2027, Arm expects revenue of about $1.54 billion, plus or minus $50 million, with non-GAAP diluted EPS of approximately $0.56, plus or minus $0.04.
The results highlight accelerating demand for Arm technology across AI infrastructure, data centers and edge devices, with strong licensing growth providing a potential foundation for higher royalty revenue as new customer designs move into production.
Arm Holdings (NASDAQ: ARM) reported record fiscal second-quarter revenue of $1.44 billion, up 27% year over year, marking its fifth consecutive quarter of revenue growth above 20%. License and other revenue surged 50% to $773 million, while royalty revenue increased 8% to $670 million.
Non-GAAP operating income rose to $638 million from $467 million a year earlier, while non-GAAP operating margin expanded to 44.2% from 41.1%. Non-GAAP diluted EPS increased 33% to $0.52.
Data center demand remained a major growth driver. Arm said data center royalties doubled year over year, while its server market share at leading hyperscalers rose from 15% in 2024 to more than 50% in 2025 and is expected to exceed 60% by the end of 2026.
Arm also highlighted strong demand for its new AGI CPU business. The company has secured purchase orders from multiple customers through 2027 and said confidence has increased in generating up to $2 billion of AGI CPU revenue across fiscal 2027 and 2028.
For fiscal Q3 2027, Arm expects revenue of about $1.54 billion, plus or minus $50 million, with non-GAAP diluted EPS of approximately $0.56, plus or minus $0.04.
The results highlight accelerating demand for Arm technology across AI infrastructure, data centers and edge devices, with strong licensing growth providing a potential foundation for higher royalty revenue as new customer designs move into production.
