❯ Arm revenue grows 27% as data-center royalties double

Licensing drives growthArm reported results on November 4 for its fiscal 2027 second quarter ended September 30. Its official announcement put revenue at $1.44 billion, up 27%, marking a fifth consecutive quarter of growth above 20%. Licensing and other revenue rose 50% to $773 million, while royalties reached $670 million, approximately 8% higher.

Design agreements and chip shipmentsArm licenses processor designs and related technology to chipmakers and cloud companies. Agreements generate licensing revenue, and customers’ subsequent chip shipments generate royalties. Partners shipped more than 10 billion Arm-based chips in a quarter for the first time. Data-center royalties doubled, extending the business further from devices such as smartphones into AI infrastructure.

Preparing direct silicon deliveriesArm is also developing its own AGI CPU. It says multiple customers have placed orders extending through calendar 2027, with initial commercial deliveries on track for fiscal 2027’s fourth quarter. Confidence in generating up to $2 billion of AGI CPU revenue across fiscal 2027 and 2028 has increased. Licensing continues to produce revenue as direct chip sales introduce procurement, supply and delivery milestones into the business.

▮ SIGNALAI infrastructure is increasing existing royalties while creating customers for Arm-designed silicon, putting two business models on the same platform.