Arm beats Q2 with $1.44B revenue as hyperscaler server share tops 50%
ryanshrout · x · 2026-11-05
Arm reported fiscal Q2 revenue of $1.44B, up 27% and ahead of its $1.38B guide, projecting $1.54B for Q3. Licensing grew 50% to $773M (vs 30% guided) while royalties grew just 8% to $670M, below both the low-teens guide and the $721M analysts expected; shares slipped after hours. Licensing swings with deal timing, and Arm lowered its full-year royalty outlook in July on smartphone weakness. The bright spot: data center royalties doubled YoY, and Arm says its share of servers at top hyperscalers grew from 15% in calendar 2024 to over 50% in 2025, expecting to pass 60% by end of 2026 driven by Axion, Graviton, Cobalt and NVIDIA parts.
Related event: Arm Beats Q2 Estimates as Data Center Royalties Double(2 posts)→
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