Arm Holdings plc reported record second quarter 2027 results, with revenue growing 27% year-over-year to $1,443 million, exceeding analyst expectations. The performance was characterized by exceptional licensing momentum and a doubling of data center royalties, which successfully offset smartphone segment headwinds caused by memory pricing.
Key Highlights
- License and other revenue increased 50% year-over-year to $773 million, driven by high-value agreements and v9 architecture adoption.
- Data center server market share at top hyperscalers more than tripled to over 50% in calendar 2025, with expectations to exceed 60% by the end of calendar 2026.
- Management reaffirmed confidence in achieving $2 billion in AGI CPU revenue through FY2028, with the first commercial deliveries on track for the fourth quarter of 2027.