Arm fiscal year 2026 Q2 revenue reaches $1.44 billion, exceeding expectations

The financial report shows that Arm (ARM.US) achieved revenue of $1.44 billion for fiscal year 2026 Q2, a year-on-year increase of 27%, exceeding the market expectation of $1.38 billion. Adjusted EPS was $0.52, higher than the expected $0.47. The company expects Q3 revenue to be around $1.54 billion, roughly in line with the market forecast of $1.53 billion. Growth in the data center business offset weakness in the smartphone market. Arm is transforming from a chip architecture licensor to a chip manufacturer, with its self-developed CPU expected to contribute up to $2 billion in total revenue in fiscal years 2027 and 2028. CEO Haas stated that the company is more confident in achieving this revenue target, but current supply capacity still limits growth. In Q2, licensing business revenue increased by 50% year-on-year to $773 million, while royalty revenue rose 8% to $670 million. After the financial report was released, Arm’s after-hours stock price fluctuated, having previously risen by more than 4%, but is now down 3.8%.