Overview
- Arm reported fiscal Q2 revenue of about $1.14 billion and adjusted EPS of $0.39, topping consensus estimates.
- Management guided current‑quarter revenue to a roughly $1.23 billion midpoint, ahead of Wall Street’s ~$1.1 billion view.
- Royalty revenue rose 21% to $620 million and licensing climbed 56% to $515 million, reflecting adoption across smartphones, data centers and automotive.
- Annualized contract value increased 28% year over year to $1.6 billion, highlighting strengthening recurring and licensing pipelines.
- Shares moved higher in after‑hours and premarket trading as analysts reaffirmed bullish ratings, with price targets including BofA at $205, Citi at $200 and KeyBanc at $190.