AI data centers keep feeding Arm. Arm said on November 4 that revenue for its fiscal second quarter, which ended September 30, rose 27% from a year earlier to $1.44 billion, its best second quarter ever. Licensing and other revenue climbed 50% to $773 million. Royalty revenue reached $670 million, and data center royalties doubled.
Partners shipped more than 10 billion Arm-based chips in the quarter, Arm said. That was the first time the figure passed 10 billion. Arm also said it is now more confident it can reach up to $2 billion in revenue from its own Arm AGI CPU silicon over fiscal 2027 and 2028, with first commercial deliveries on track for fiscal Q4. Oracle Cloud Infrastructure plans to offer AGI CPU instances in 2027. Arm expects its share of servers at the top hyperscalers to pass 60% by the end of 2026.
Investor's Business Daily reported that Arm beat analyst estimates for the quarter and its guidance, with adjusted earnings of 52 cents a share, but the stock slid in extended trading.
