Overview
- Arm reported record fiscal second-quarter revenue of $1.44 billion on Nov. 4, driven by a 50% surge in licensing to $773 million.
- Royalty revenue rose 8% to $670 million and missed analyst expectations, which helped trigger a sell-off in the stock despite the overall beat.
- The company guided to about $1.54 billion for the third quarter and reiterated a target of up to $2 billion in Arm AGI CPU revenue across fiscal 2027–28 based on newly secured purchase orders.
- Arm said partners shipped a record more than 10 billion Arm-based chips in the quarter and that its server architecture exceeded 50% share at major cloud providers in 2025 with an aim to top 60% by the end of 2026.
- A Delaware jury found Arm breached parts of its licensing deal with Qualcomm but awarded only $2 in damages, leaving core royalty and licensing-term disputes for a judge to decide and creating legal uncertainty that could affect future royalty flows.