Arm Reports Q1 Revenue of $1.29 Billion, Up 22% Year-on-Year, Exceeding Expectations

Arm has released its financial report for the first quarter of fiscal year 2027, reporting revenue of $1.29 billion, a 22% year-on-year increase, surpassing market expectations of $1.26 billion. Adjusted earnings per share were $0.45, up 29% year-on-year, exceeding the expected $0.40. Adjusted net profit reached $480 million, a 28% increase compared to the previous year. Licensing revenue was $574 million, up 23% year-on-year, while royalty revenue was $715 million, a 22% increase, with data center royalty revenue more than doubling year-on-year. The AI and data center businesses are showing strong momentum. Since the launch of the Arm AGI CPU in March, customer demand has surged from an initial expected order of about $1 billion to over $2 billion. Arm's Neoverse data center processors have shipped over 1.5 billion cores, with the latest 500 million completed in just nine months. NVIDIA's Vera has entered full production, and AWS has reached a multi-year agreement with Meta to deploy tens of millions of Graviton5 cores. Qualcomm has announced plans to launch the Arm-based data center CPU Dragonfly C1000. The revenue guidance for Q2 is approximately $1.38 billion, with adjusted earnings per share of about $0.47, both above market averages but below some optimistic forecasts. The company indicated that growth in smart mobile royalty revenue will slow, leading to a post-market stock price drop of about 7%.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.