Arm's Q1 revenue increased 22% to $1.29 billion, with data center royalties doubling.

ChainCatcher report: Arm released its first-quarter fiscal year 2027 financial results, reporting 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 totaled $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 expected order value of approximately $1 billion 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, Arm forecasts revenue of approximately $1.38 billion and adjusted earnings per share of about $0.47—both above the market average but below some more optimistic projections. The company noted that smartphone royalty revenue growth will slow, causing its stock to drop by approximately 7% in after-hours trading.