Arm Earnings: Q2 Revenue Hits Record $1.44bn

Arm Holdings has delivered another strong Arm earnings print, with its strongest second-quarter revenue on record. In a 4 November 2026 newsroom release covering the quarter ended 30 September 2026, the Cambridge chip-design group said total revenue rose 27% year on year to $1.44 billion — the fifth straight quarter of total revenue growth above 20%.

The Arm earnings print was led by licensing. Licence and other revenue reached $773 million, up 50% year on year, which Arm calls an important leading indicator of future royalties. Royalty revenue was $670 million, with data-centre royalties doubling year on year. Partners reported more than 10 billion Arm-based chips shipped in the quarter, 1.5 billion more than a year earlier, on a platform Arm says more than 30 million developers already use. That shipment step-up is the volume story behind the royalty line: more devices shipping today usually means a larger royalty base in later quarters once the contracts catch up.

In brief

Q2 FYE27 revenue $1.44bn (+27%); licensing $773m (+50%); royalties $670m with data-centre royalties doubling.
Arm says hyperscaler Arm server share rose from 15% in calendar 2024 to more than 50% in 2025, and expects more than 60% by end-2026.
Confidence is up in up to $2bn of Arm AGI CPU revenue over FYE27–28; first commercial deliveries are on track for Q4 FYE27.

Licensing today, royalties tomorrow

Arm splits the story into its traditional IP business and a newer silicon line built around the Arm AGI CPU. On the IP side, partners are taking more licences and shipping more silicon. On the silicon side, Arm designs chips it sells directly. The company says purchase orders for the AGI CPU now run from multiple customers through calendar 2027, that first commercial deliveries remain on track for Q4 FYE27, and that Oracle Cloud Infrastructure plans to offer Arm AGI CPU instances in 2027.

In its shareholder letter, Arm also reported non-GAAP diluted earnings per share of $0.52, up 33% year on year, and guided Q3 FYE27 revenue to $1.54 billion ±$50 million. Those EPS and guidance figures are company disclosures in that letter.

Arm puts its share of servers at the top hyperscalers at more than 50% in calendar 2025, up from 15% in 2024, and says current ramps across AWS Graviton, Google Axion, Microsoft Cobalt and Nvidia platforms support an expectation of more than 60% by the end of calendar 2026. It separately says Physical AI royalty revenue grew 50% year on year, and that Arm-based PCs now account for about 20% of global PC shipments. Confidence in achieving up to $2 billion of Arm AGI CPU revenue across FYE27 and FYE28 has increased over the past 90 days, Arm says, on additional supply and customer mix — a company target, not a booked backlog total.

Why the royalty mix matters next to AMD and Intel

A licensing-heavy quarter is how Arm usually telegraphs royalty growth later. The data-centre royalty doubling is the piece that sits closest to the AI infrastructure race already visible in AMD’s record data-centre quarter and in Intel’s latest results. Arm is not competing as a foundry; it is collecting architecture fees while hyperscalers build their own Arm CPUs and, increasingly, while Arm sells its own AGI CPU silicon into that same cloud stack.

That dual model also explains why Nvidia partnerships and AMD–Meta rack deals sit in the same frame: whoever wins the rack still often needs an Arm-compatible software path. The newsroom note that Signal65 clocked roughly 2x performance per rack versus an AMD EPYC 9755 is Arm’s chosen comparison, not an independent TSN benchmark, but it shows how the company wants the AGI CPU scored against x86 in dense AI racks.

For UK readers the Cambridge-based group remains one of Britain’s highest-profile listed chip IP companies, with results that move on US hyperscaler capex as much as on handset cycles. The next checks are whether Q3 lands inside the $1.54bn ±$50m band, whether AGI CPU shipments actually start in Q4 FYE27, and whether the “up to $2bn” AGI CPU revenue ambition over two fiscal years shows up as recognised sales rather than orders.