Arm Q2 Revenue Grows 27% as AI Demand Drives Data Center Expansion

TechFlow reported on November 5 that, according to Bloomberg, financial results showed Arm(ARM.O) generated revenue of $1.44 billion in Q2 of fiscal 2026, up 27% year over year and above the market expectation of $1.38 billion; adjusted EPS was $0.52, above the expected $0.47. The company expects Q3 revenue of approximately $1.54 billion, roughly in line with the market expectation of $1.53 billion. Growth in the data center business offset weakness in the smartphone market. Arm is transitioning from a chip architecture licensor to a chip manufacturer, and its in-house CPUs are expected to contribute up to $2 billion in combined revenue in fiscal 2027 and fiscal 2028.

CEO Haas said the company has greater confidence in achieving this revenue target, but current supply capacity still limits growth. Q2 licensing revenue increased 50% year over year to $773 million, and royalty revenue grew 8% to $670 million. After earnings were released, Arm's after-hours share price fluctuated, having earlier risen more than 4%, and is now down 3.8%.

Source: TechFlow