Quarterly ResultJul 29, 2026, 04:09 PM
Arm Q1 Revenue $1.29B, +22%; Non-GAAP EPS $0.45, +29%
AI Summary
Arm Holdings plc reported record first-quarter fiscal year 2027 results, with total revenue increasing 22% year-over-year to $1.29 billion and non-GAAP diluted EPS growing 29% to $0.45, surpassing guidance. The strong performance was driven by significant growth in both royalty and licensing revenue, fueled by accelerating demand for Arm's compute platform in AI across cloud infrastructure, edge devices, and physical AI systems. The company noted that demand for its Arm AGI CPU has exceeded initial expectations, now projected at over $2 billion for fiscal years 2027 and 2028.
Key Highlights
- Total revenue increased 22% year-over-year to $1.29 billion.
- Non-GAAP diluted EPS grew 29% year-over-year to $0.45, exceeding guidance.
- Royalty revenue rose 22% to $715 million, with data center royalties more than doubling.
- Licensing revenue increased 23% to $574 million.
- Demand for Arm AGI CPU now exceeds $2 billion across FY27 and FY28, up from $1 billion.
- Non-GAAP free cash flow was $665 million, up 343% year-over-year.
- Q2 FY27 revenue guidance is $1.38 billion +/- $50 million, with non-GAAP EPS guidance of $0.47 +/- $0.04.
- Arm Neoverse shipments surpassed 1.5 billion cores, with 500 million in just nine months.
Price Impact
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