Arm reported record results for its fiscal Q2 FY2027, the calendar quarter that ended in September 2026, with the announcement on November 4, 2026. Revenue hit a record $1.44 billion, up 27 percent year over year - the fifth straight quarter of growth above 20 percent - and beat the $1.38 billion analyst consensus compiled by LSEG (Arm figures company-reported).
📅 2026-11-04 - Arm Newsroom
Under the record top line, the mix matters. Licensing revenue reached $773 million, up 50 percent, while royalty revenue came to $670 million, up 8 percent. Annualized contract value, ACV, stood at $1.79 billion, up 12 percent (company-reported figures).
The AI angle is now visible directly in the royalty line. Data center royalties doubled year over year, and Arm-based server market share at the top hyperscalers more than tripled, from 15 percent in calendar 2024 to more than 50 percent in calendar 2025. More than 10 billion Arm-based chips shipped in the quarter - a first (company-reported figures).
IMPACT for engineers and businesses: the AI data center buildout now directly moves Arm royalty revenue - each Arm-based server chip shipped into hyperscaler racks carries a per-chip royalty, and Arm-based server share at the top hyperscalers has already passed 50 percent (company-reported figures). Licensing up 50 percent signals future royalty growth: chips designed today under new licenses ship as revenue two to four years out. For teams planning infrastructure, Arm-based server silicon is no longer an experiment but a priced-in part of the supply, worth reflecting in capacity and vendor plans.
One caution on the market read: Q3 guidance near $1.54 billion was slightly above the $1.53 billion consensus, but the in-line guidance failed to impress the market, and shares dipped about 2 percent in after-hours trading. The lesson for investors and operators alike: record quarters are now the baseline investors price against - the premium goes to whoever shows the AI royalty curve steepening fastest. The reaction shows how high the market bar now sits for every chip company reporting into AI demand.
Sources:
- https://newsroom.arm.com/news/arm-holdings-plc-reports-results-for-the-second-quarter-of-the-fiscal-year-ending-2027
- https://investors.arm.com/
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