Arm's quarterly revenue rises 22% to a record $1.29 billion as data centre royalties more than double

Arm Holdings released the results of the first quarter of its fiscal year ending 2027 on Wednesday, 29 July 2026. Total revenue rose 22% from the same period a year earlier to $1.29 billion, a record quarterly figure for Arm and above analyst estimates of around $1.26 billion.

Royalty revenue rose 22% in the quarter to $715 million and licensing revenue increased 23% to $574 million, both first-quarter records for the company. Royalties from data centres more than doubled from a year earlier. Arm attributed the growth to wider adoption of its version 9 architecture and its compute subsystems, along with higher royalty rates per chip.

The company said customer demand for its artificial intelligence processors across the 2027 and 2028 fiscal years has passed $2 billion, double the $1 billion figure it reported last quarter. Arm shares fell about 8% after the results were published.