Arm (NASDAQ: ARM) announced record revenue for its first quarter of fiscal year 2027, ending June 30, 2026. Total revenue surged 22% year-over-year to $1.29 billion, driven by strong licensing and royalty income. Data center royalties more than doubled, fueled by the adoption of Armv9 architecture and Arm Compute Subsystems (CSS), which command higher royalty rates per chip.

The company also reported significant progress with its Arm AGI CPU, with customer demand exceeding $2 billion for FYE27 and FYE28. Ecosystem adoption of Arm Neoverse continues to grow, with shipments surpassing 1.5 billion cores. IDC noted that spending on Arm-based accelerated server platforms has nearly doubled, surpassing x86 platforms for AI infrastructure.

Key partners like NVIDIA, Google, AWS, Microsoft, and Qualcomm are building next-generation AI infrastructure on Arm. NVIDIA's Vera, Google's Axion CPU, AWS's Graviton5 cores, Microsoft's Azure Cobalt 200, and Qualcomm's Dragonfly C1000 all leverage Arm technology. The expansion of agentic AI into edge devices, including AI PCs and robotics platforms, further strengthens Arm's position.

Recent milestones include NVIDIA's RTX Spark for agentic PCs and the Isaac GR00T humanoid robotics platform. Arm's software ecosystem, supporting over 22 million developers, is expanding with tools like Arm Performix. The company believes its platform will define the next decade of computing as AI integrates across all sectors.