Arm earnings: data center royalties double as selling own chips pits it against licensees
tengyanAI · x · 2026-11-05
- Royalty mix shifting: Arm's royalties grew 22% to $715M last quarter, with data center royalties more than doubling. Neoverse server cores passed 1.5B cumulative shipments — the first 1B took six years, the last 500M just nine months.
- Higher revenue per chip: Armv9 and ready-made compute subsystems carry higher royalty rates, so royalties grow even with flat phone volumes.
- Selling its own chips: Arm's AGI CPU launched in March; demand exceeds $2B through early 2028 but supply secured is only $1B. Awkwardly, customers like Qualcomm (just announced its own Arm-based data center CPU) are now competitors.
- Guidance: $1.38B revenue ±$50M. Watch: supply lock-ins, data center royalty disclosures, and licensee pushback.
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