Arm posts a record $1.44 billion quarter and grows more confident in its own AGI CPU chip

Arm said on Wednesday, Nov. 4, 2026, that revenue rose 27% year over year to $1.44 billion in its fiscal second quarter ended Sept. 30, its highest second quarter ever, and that its confidence in up to $2 billion of Arm AGI CPU revenue over fiscal 2027 and 2028 has increased.

For 35 years Arm sold blueprints and collected a small royalty on every chip. Now it also sells its own server chip, which puts it in competition with some of the customers who license its designs. A 50% jump in licensing says partners aren't leaving yet. The AGI CPU's first real deliveries, due by March, will show whether Arm can sell finished chips as well as it licenses designs.

The quarter Arm just reported is the second quarter of its fiscal year ending in 2027, and that quarter closed on Sept. 30, 2026. Total revenue rose 27% from a year earlier to $1.44 billion. Year over year means measured against the same quarter a year before. Arm calls it the highest second quarter it has reported, and its fifth straight quarter of growth above 20%. Those figures are Arm's.

Licensing and other revenue rose 50% to $773 million. A license is what a partner pays for the right to use Arm's chip designs. Royalty revenue was $670 million. A royalty is the smaller fee Arm collects later, when a partner sells a chip built on those designs. Data center royalties doubled from a year earlier. Those lines are Arm's.

Partners reported more than 10 billion Arm-based chips shipped in the quarter, 1.5 billion more than a year earlier. That shipment count is the partners', as Arm reported it.

Arm says its confidence in achieving up to $2 billion in Arm AGI CPU revenue over the fiscal years ending in 2027 and 2028 has increased over the past 90 days. The AGI CPU is a server chip Arm is selling itself to data-center customers, rather than only licensing the blueprint. Purchase orders from multiple customers extend through calendar 2027. First commercial deliveries are on track for the fourth quarter of the fiscal year ending in 2027. Oracle Cloud Infrastructure plans to offer Arm AGI CPU instances in 2027. An instance is a slice of a cloud computer a customer rents. Those lines are Arm's.

Arm says its share of servers at the top hyperscalers went from 15% in calendar 2024 to more than 50% in calendar 2025, and that it expects more than 60% by the end of calendar 2026. A hyperscaler is one of the giant cloud companies. Arm cites AWS Graviton, Google Axion, Microsoft Cobalt, and NVIDIA platforms. Those share figures, and the names Arm cites, are Arm's.

Arm says Arm-based PCs are about 20% of global PC shipments. Royalty revenue from what Arm calls physical AI, its automotive business, grew 50%. Those lines are Arm's.

Arm hosted its earnings webcast at 5:00 p.m. Eastern on Nov. 4. That time is Arm's.

The picture is Arm chief executive Rene Haas, in a gray checked blazer and white shirt with a headset microphone, smiling and gesturing with both hands while seated on stage in front of a blue-lit backdrop. The credit is Ramsey Cardy / Web Summit via Sportsfile, under a Creative Commons BY 2.0 license. The photo is from Web Summit 2022 in Lisbon.

In plain terms, Arm just reported its biggest second quarter: $1.44 billion, up 27%, with licensing up 50% and data-center royalties doubled. Partners shipped more than 10 billion Arm-based chips in the quarter. The newer bet is a finished server chip Arm sells itself. The company says orders for that AGI CPU already run through 2027, and that the first deliveries are still on track for the quarter that ends in March.