Arm Holdings (NASDAQ: ARM) reported record second-quarter results for fiscal year 2027, ending September 30, 2026. Total revenue surged 27% year-over-year to $1.44 billion, marking the highest ever second quarter. This growth was driven by a 50% increase in licensing and other revenue to $773 million, a key indicator of future royalty expansion.
Royalty revenue reached $670 million, with data center royalties doubling year-over-year. A milestone was reached as Arm's partners shipped over 10 billion Arm-based chips, an increase of 1.5 billion year-over-year, supporting the platform's 30 million developers. The company's business is split between the IP business, featuring record silicon investments, and the new silicon business, where demand for the Arm AGI CPU is extremely strong.
Arm raised its revenue target for the Arm AGI CPU to up to $2 billion over FYE27 and FYE28. Oracle Cloud Infrastructure plans to offer Arm AGI CPU instances in 2027, and independent testing by Signal65 showed the CPU delivering approximately 2x the performance per rack versus AMD EPYC 9755. Arm-based server market share at top hyperscalers more than tripled, exceeding 50% in calendar 2025, with expectations to surpass 60% by the end of calendar 2026.
Source: TechPowerUp News · Summarized by HeadlinesBriefing