Arm's quarterly revenue rises 27% to $1.44 billion as data-centre royalties double
Arm beat its own $1.38 billion guide and forecast about $1.54 billion for the next quarter, but its shares slipped in after-hours trading; the next-quarter figure is guidance, not a result.
Why it matters
Arm says Arm-based servers rose from 15% of the top hyperscalers' market in calendar 2024 to more than 50% in calendar 2025, and expects more than 60% by the end of 2026 as Google Axion, AWS Graviton, Microsoft Cobalt and Nvidia's Vera ramp. License revenue grew 50% to $773 million, which Arm calls a leading indicator of future royalties. Its own chip, the Arm AGI CPU, has purchase orders running through calendar 2027, with first deliveries due in fiscal Q4. Watch whether royalties accelerate as those designs ship.
Key facts
- Revenue $1.443 billion, up 27% year over year
- License and other revenue up 50% to $773 million
- Royalty revenue up 8% to $670 million
- Data-centre royalties doubled year over year
- Non-GAAP EPS $0.52
- Q3 guide $1.54 billion, plus or minus $50 million