ARM HOLDINGS PLC Q1 2027 Earnings Release

Arm Holdings plc reported record first quarter results for fiscal year 2027, ending June 30, 2026. Total revenue increased by 22% year-over-year to $1.289 billion, driven by a 22% increase in royalty revenue to $715 million and a 23% increase in licensing revenue to $574 million. Data center royalties more than doubled year-over-year. Non-GAAP EPS grew 29% year-over-year to $0.45. The company highlighted the accelerating transition of data centers to Arm technology and the expanding demand for Arm's platform in AI applications beyond the cloud, including edge devices and physical AI systems. Arm AGI CPU initial customer demand has exceeded expectations, now surpassing $2 billion for fiscal years 2027 and 2028. The company also noted strong momentum with key partners like NVIDIA, Google, AWS, and Qualcomm in the AI infrastructure space. Industry data indicates a significant increase in spending on Arm-based accelerated server platforms. Arm anticipates continued growth driven by the increasing adoption of AI across various computing sectors.