Arm Q1 revenue reaches $1.29 billion, up 22% year-over-year, with data center royalties doubling.

Huoxing Finance reports that Arm released its first-quarter financial results for fiscal year 2027, with revenue of $1.29 billion, a 22% year-over-year increase, surpassing the market expectation of $1.26 billion; adjusted earnings per share of $0.45, up 29% year-over-year and exceeding the expected $0.40; adjusted net profit of $480 million, up 28% year-over-year. Licensing revenue reached $574 million, up 23% year-over-year; royalty revenue amounted to $715 million, up 22% year-over-year, with data center royalty revenue more than doubling year-over-year. AI and data center businesses are showing strong momentum. Since its launch in March, demand for Arm’s AGI CPU has grown from an initial expectation of approximately $1 billion in orders to over $2 billion. Cumulative shipments of Arm Neoverse data center processors have exceeded 1.5 billion cores, with the latest 500 million cores shipped in just nine months. NVIDIA’s Vera is now fully operational; AWS and Meta have signed multi-year agreements to deploy tens of millions of Graviton5 cores; Qualcomm has announced plans to launch its Arm-based data center CPU, Dragonfly C1000. For the second quarter, revenue guidance is approximately $1.38 billion and adjusted earnings per share are expected to be around $0.47, both above the market average but below some more optimistic forecasts. The company noted that mobile royalty revenue growth will slow, causing its stock to drop by approximately 7% in after-hours trading.