Arm delivers a record second quarter, reaching $1.44 billion in total revenue

What happened

Meanwhile, royalty revenue for the quarter reached $670 million, with data center (a building full of computers that runs online services) royalties doubling year over year . For the first time, Arm’s partners reported more than 10 billion Arm-based chips shipped during the quarter – an increase of 1.5 billion chips year over year – adding to the scale of the platform already used by more than 30 million developers .

Arm AGI CPU expands the business opportunity by delivering Arm-design silicon directly to customers, with demand continuing to strengthen: Arm’s confidence in achieving up to $2 billion in Arm AGI CPU revenue over FYE27 and FYE28 has increased over the past 90 days, supported by additional supply and customer mix. Purchase orders for Arm AGI CPU have been secured from multiple customers extending through calendar 2027, and the first commercial deliveries are on track for Q4 FYE27.

Oracle Cloud Infrastructure (OCI) announced plans to offer Arm AGI CPU instances in 2027. Arm Q2 FYE27 quarterly earnings mark fifth consecutive quarter of total revenue growth exceeding 20% year over year.

Today (November 4, 2026), Arm (NASDAQ: ARM) published a letter to its shareholders containing the company’s results for its second quarter of fiscal year 2027, which ended September 30, 2026. The infographic below provides the key highlights for the quarter: Here are what the results mean and how they were achieved: Total revenue for Arm in Q2 FYE27 increased 27% year over year to $1.44 billion , representing Arm’s highest ever second quarter.

This reflects strong execution and growing demand for the Arm compute platform. Record second quarter was driven by strong licensing and other revenue of $773 million , reflecting a 50% year over year increase , an important leading indicator of future royalty growth.