Arm Holdings reported fiscal second-quarter 2027 revenue of $1.44 billion, up 27% year over year and marking its biggest quarter in the company’s history. Licensing revenue jumped 50% to $773 million, while royalty revenue rose 8% to $670 million and missed analyst estimates. Adjusted earnings per share beat Wall Street expectations, but GAAP net income fell to $130 million and modest guidance for the third quarter failed to reassure investors. The stock subsequently declined by roughly 5% to 11% across several trading sessions. Arm is nevertheless betting on artificial intelligence, with data center royalties doubling and its share among leading hyperscalers exceeding 50% in 2025.
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