Arm Announces Q2 FY2027 Financial Results: Total Revenue of $1.44 Billion, Up 27% Year-over-Year

On November 4, Arm announced its financial results for the second quarter of fiscal year 2027 (July 1, 2026 to September 30, 2026). Total revenue for the quarter reached $1.44 billion, up 27% year-over-year, marking the fifth consecutive quarter of over 20% revenue growth. License and other revenue reached $773 million, up 50% year-over-year; royalty revenue reached $670 million, up 8% year-over-year, with data center royalties doubling year-over-year. On a non-GAAP basis, operating income reached $638 million, with an operating margin of 44.2%; on a GAAP basis, operating income reached $201 million, with an operating margin of 13.9%. Arm CEO Rene Haas stated that Arm is more confident in achieving up to $2 billion in combined Arm AGI CPU revenue across fiscal years 2027 and 2028. In terms of shipment scale, Arm partners reported shipping over 10 billion Arm-based chips in a single quarter for the first time, an increase of 1.5 billion year-over-year. More than 30 million developers currently use the Arm platform. In the automotive business, Arm's physical AI royalty revenue grew 50% year-over-year. Arm launched Arm Total Design for Physical AI, bringing together more than 80 companies across computing, software, AI models, and systems integration. In the chip business, Arm AGI CPU has received purchase orders from multiple customers, with orders covering the entire calendar year 2027. Initial commercial deliveries are on schedule for the fourth quarter of fiscal year 2027. Oracle Cloud Infrastructure (OCI) announced plans to launch Arm AGI CPU instances in 2027. An independent test report from Signal65 shows that Arm AGI CPU delivers approximately 2x the performance per rack compared to AMD EPYC 9755. In terms of market share, Arm-based servers' share among leading hyperscale cloud service providers increased from 15% in 2024 to over 50% in 2025, and Arm expects this share to exceed 60% by the end of 2026.