Arm Holdings stock posts record Q2 as AI demand lifts revenue 27%

Arm reported a record second quarter on November 4, 2026, as demand for its computing platform lifted revenue and licensing activity. In its Arm Newsroom, the company said the quarter ended September 30 and marked its fifth consecutive quarter of year-over-year revenue growth above 20 percent.

Licensing Leads The Quarter

Second-quarter revenue increased 27 percent from a year earlier to 1.44 billion US dollars, the company's highest second-quarter total. Licensing and other revenue rose 50 percent to 773 million US dollars, while royalty revenue increased 8 percent to 670 million US dollars.

Data-center royalties doubled from a year earlier as Arm-based processors expanded in artificial-intelligence infrastructure and general-purpose cloud workloads. Physical AI royalty revenue also grew 50 percent, supported by adoption in advanced driver-assistance and in-vehicle infotainment systems.

The mix highlights both the strength and the timing sensitivity of Arm's model. Licensing reflects new customer commitments and design activity, while royalties depend on chips entering production and shipping at scale. Arm said its partners shipped more than 10 billion Arm-based chips during the quarter, 1.5 billion more than a year earlier.

AGI CPU Expands The Opportunity

Management said confidence had increased in achieving up to 2 billion US dollars in Arm AGI CPU revenue across fiscal 2027 and fiscal 2028. Purchase orders from multiple customers extend through calendar 2027, and first commercial deliveries remain on track for the fourth quarter of fiscal 2027.

Oracle Cloud Infrastructure plans to offer Arm AGI CPU instances in 2027. Arm also said its server share among leading hyperscalers rose from 15 percent in calendar 2024 to more than 50 percent in calendar 2025, with the company expecting that share to exceed 60 percent by the end of calendar 2026.

The expansion opportunity is balanced by softer smartphone conditions. Higher memory prices are pressuring smartphone sales, particularly in mid-range and lower-priced devices, leaving Arm's edge-AI royalty outlook less robust than its cloud and physical-AI markets.

Stock Context And Next Focus

Arm Holdings stock traded at 160.50 euros on Lang & Schwarz at 13:06:55 CET on Friday, November 6, 2026; the real-time quote of Arm Holdings stock is available here. The next investor focus is whether the strong licensing pipeline converts into royalty growth as new designs reach production, while smartphone demand remains a near-term swing factor.

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For more company-specific developments, see more news and analyses on Arm Holdings stock.

Arm Holdings Key Facts

• Company: Arm Holdings plc
• ISIN: US0420682058
• Ticker: ARM
• Primary listing: Nasdaq
• Latest quote: 160.50 euros on Lang & Schwarz, November 6, 2026, 13:06:55 CET
• Second-quarter revenue: 1.44 billion US dollars, up 27 percent year over year
• License and other revenue: 773 million US dollars, up 50 percent year over year
• Royalty revenue: 670 million US dollars, up 8 percent year over year