Odaily Planet Daily report: Arm released its first-quarter fiscal year 2027 financial results, reporting revenue of $1.29 billion, a 22% year-over-year increase, exceeding the market expectation of $1.26 billion; adjusted earnings per share were $0.45, up 29% year-over-year, surpassing the market expectation of $0.40.
The financial report showed that Arm's adjusted net profit was $480 million, a 28% year-over-year increase; licensing revenue was $574 million, up 23% year-over-year; and royalty revenue was $715 million, up 22% year-over-year, with data center royalty revenue more than doubling year-over-year.
Arm stated that its AI and data center businesses continue to grow. Since the launch of the AGI CPU in March, customer expected order sizes have increased from approximately $1 billion to over $2 billion. The cumulative shipment of Arm Neoverse data center processors has exceeded 1.5 billion cores.
Additionally, NVIDIA's Vera has fully entered production, AWS and Meta have signed a multi-year agreement to deploy tens of millions of Graviton5 cores, and Qualcomm also plans to launch its Arm-based data center CPU, Dragonfly C1000.
Arm expects second-quarter revenue of approximately $1.38 billion and adjusted earnings per share of approximately $0.47, both above the market average forecast. The company also indicated that growth in mobile licensing revenue will slow, causing its stock to drop about 7% in after-hours trading.