Arm beats revenue estimates as AI, data-center demand lifts licensing growth

Traders Union
All News
Business & Wealth
Companies
Arm beats revenue estimates

Top Stories

Editors' Picks

Stocks

Crypto

Economics

Currencies

Commodities

Business & Wealth

Market Voices

Olga Shendetskaya

05.11.2026

Arm beats revenue estimates as AI, data-center demand lifts licensing growth — Arm revenue driven by AI

Growing use of Arm-based designs in artificial intelligence and cloud infrastructure is supporting the chip architecture company's top line as customers expand deployment of custom processors. The group also says its server-chip architecture accounts for more than half of deployments at major cloud providers in 2025 and is expected to top 60% by the end of 2026.

Highlights

Arm reports Q2 revenue of $1.44 billion versus analyst estimate of $1.38 billion, driven by 8% royalty growth and $773 million licensing revenue.
Arm forecasts Q3 revenue of $1.54 billion, marginally above $1.53 billion consensus, citing power efficiency demand for AI and data center products.
Arm shares drop 2% after earnings as legal uncertainty persists following Delaware jury finding breach in Qualcomm licensing, awarding $2 in damages.

Quarterly performance and cloud adoption

As reported by Reuters, Arm says second-quarter revenue reaches $1.44 billion, topping analysts' average estimate of $1.38 billion compiled by LSEG, as higher royalty payments and licensing fees offset pressure in other areas.

Adjusted profit comes in at 52 cents per share, ahead of estimates for 47 cents per share. Royalty revenue rises 8% to $670 million in the quarter, while licensing revenue totals $773 million, well above the analyst estimate of $625.1 million.

Arm, which licenses processor architecture rather than manufacturing semiconductors itself, depends primarily on licensing fees and royalties from chips shipped using its technology. The company says demand is being supported by customers deploying its designs in AI-related computing products and data-center workloads.

Outlook, market reaction and legal overhang

For the third quarter, Arm projects revenue of $1.54 billion, slightly above the average analyst estimate of $1.53 billion. The company says its architecture remains attractive because of power efficiency, a key factor for operators trying to control the energy and cooling costs of large AI models.

Shares fall about 2% in extended trading after the results. The update also comes after a Delaware jury last month found that Arm breached parts of its licensing agreement with Qualcomm and interfered with Qualcomm's relationship with Meta, while awarding only $2 in damages and leaving key royalty and future licensing disputes to be decided by a judge.

In our earlier article on Wipro’s second-quarter revenue beat, we noted that steadier client spending—especially a recovery in Europe—helped lift results above market expectations. We also highlighted how artificial intelligence services are starting to generate new revenue streams for major Indian IT providers alongside traditional outsourcing work.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

Did you like the article?

Editor's Picks for You

From airline tickets to Ferraris: What can you buy with crypto?

By Pavlo Kot
1 hour ago

From airline tickets to Ferraris: What can you buy with crypto?

Editors' Picks

Apartment or Bitcoin: Choosing a safe haven for your wealth

By Pavlo Kot
Yesterday

Apartment or Bitcoin: Choosing a safe haven for your wealth

Editors' Picks

CVS Health’s $117B split: Defensive spin-off or end of healthcare vertical integration?

By Dmytro Kharkov
Yesterday

CVS Health’s $117B split: Defensive spin-off or end of healthcare vertical integration?

Editors' Picks

All Editors' Top Picks

Latest Arm News

Arm Holdings stock rises nearly 6% as record revenue and licensing income drive buying

By Mikhail Vnuchkov
Yesterday

Arm Holdings stock rises nearly 6% as record revenue and licensing income drive buying

Stocks

Arm stock slides on seller pressure as weak smartphone demand clouds earnings boost

By Sergey Shendetskyi
Yesterday

Arm stock slides on seller pressure as weak smartphone demand clouds earnings boost

Stocks

Arm Holdings shares drop about 10.5% after upbeat earnings are overshadowed by weak guidance

By Anastasiia Chabaniuk
06.11.2026

Arm Holdings shares drop about 10.5% after upbeat earnings are overshadowed by weak guidance

Stocks

Pavlo Kot
1 hour ago

From airline tickets to Ferraris: What can you buy with crypto?

Pavlo Kot
Yesterday

Apartment or Bitcoin: Choosing a safe haven for your wealth

Dmytro Kharkov
Yesterday

CVS Health’s $117B split: Defensive spin-off or end of healthcare vertical integration?

Anastasiia Chabaniuk
Yesterday

Italy embraces blockchain, but remains wary of cryptocurrencies

Mikhail Vnuchkov
Yesterday

From Wall Street to Bitcoin: A wave of panic sweeps across markets

Pavlo Kot
27 min ago

Mario Nawfal: Ueno Bank crash leaves business owner with total loss

Oksana Koneva
52 min ago

China’s subsidies and price competitiveness distort trade, Pascal Lamy tells Caixin

Yulia Slavina
1 hour ago

Jordan Kerridge: Over 214,000 cyber threats targeted Indonesia’s financial sector in 24 hours

Alena Volkova
1 hour ago

Understanding markets with data and code is key for programmers, Kirk Borne notes

Igor Krasulya
3 hours ago

Justin Sun: On-chain purchase reflects alignment between public markets and TRON network

Top News

Pavlo Kot
1 hour ago

From airline tickets to Ferraris: What can you buy with crypto?

From airline tickets to Ferraris: What can you buy with crypto?

Mikhail Vnuchkov
16 hours ago

Wall Street analysts urge investors to buy stocks after U.S. market rout

Wall Street analysts urge investors to buy stocks after U.S. market rout

Ivan Andriyenko
16 hours ago

Suspicious Polymarket bets detected ahead of U.S. election poll releases

Suspicious Polymarket bets detected ahead of U.S. election poll releases

Sholanke Dele
21 hours ago

Chinese authorities identify weak domestic demand as a major economic challenge

Chinese authorities identify weak domestic demand as a major economic challenge

Jainam Mehta
22 hours ago

OpenAI raises $11 billion at $1.25 trillion valuation

OpenAI raises $11 billion at $1.25 trillion valuation

Top 5 companies for you

United States

Live News

Pavlo Kot
Now

Binance hackers still hold $3.1 billion in cryptocurrency after attack

Mykhailo Ihnatenko
Now

AMD stock attempts recovery after sharp sell-off wipes out post-earnings gains

Anton Kharitonov
Now

EUR/USD slips toward 1.1170 as dollar demand rises ahead of NFP

Mykhailo Ihnatenko
Now

Ethereum price falls toward $2,200 as long liquidations hit $1.12B

Eugene Komchuk
Now

Google could acquire a stake in TeraWulf's AI project

© IAFT Ltd., 2010-2026 All rights to the website are owned by IAFT Ltd.,
Registration number - HE 336186

Risk disclosure:

Information on the TradersUnion.com website is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the Forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit. Trading in futures and options carries substantial risk of loss and is not suitable for every investor.

That is why you should only invest money that you are prepared — or can afford — to lose at such high risks. Tradersunion.com does not provide any financial services, including investment or financial advisory services. Also, the Traders Union is not a broker and does not get money for trading in the Forex or CFD markets. Our website only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers.
Disclaimer:

Traders Union (TradersUnion.com) shall not be liable for the consequences of trading decisions made by the Client and for the possible loss of his capital resulting from the use of this website and information published on it.

Forex market, CFD and cryptocurrency trading involves high risks and is not suitable for everyone. Before investing money, you need to adequately assess the level of your expertise and be aware of the risks, particularly in the context of trading with leverage. The information on this website is not intended for distribution or use by any person in any country or jurisdiction, where such distribution or use would be in violation of the local law or regulation. Any payments by Traders Union (TradersUnion.com) to the users of our website shall be legally interpreted solely as an incentive on our part for the activity on the website in the form of a deduction of a part of the advertising income; they shall not be a subject of any claims of our users or our obligations, a subject of disputes, as well as cannot be considered in relation to the services provided to users by brokers, both in fact and in their completeness and volume. The administration of the website shall not be liable for the content of user comments and reviews about the companies and shall not verify whether the authors of the reviews are indeed real clients of a specific company. All reviews, both negative and positive are published on the website without verification of their reliability; only offensive reviews that call for violence or any kind of discrimination and also reviews published from one group of IP addresses are moderated and removed. The authors of the materials shall be fully liable for the accuracy, completeness and impartiality of any information in the articles and reviews, including in the context of their use or mention of any brand names or trademarks. All mentions of the names of companies and their brands in any materials on the website shall be made in the context of communication of socially important information to the people about their activities by independent journalists, who are the authors. All evaluations and indicators on the website express the subjective opinion of the authors of the reviews (articles) and shall not be viewed as accurate statements and be a subject of disputes and claims against Traders Union.
Disclosure of advertisers and revenues:

All the services on the Tradersunion.com website are free for you to use. Our team spends thousands of hours per annum researching brokers and gathering information about them to help investors all over the world to choose reliable companies and to avoid fraudsters.

Indeed, the curating, sourcing, and organization of this process requires substantial financial investment by Tradersunion.com, which the website earns in the form of advertising payments. There are two types of advertising services on the website — direct advertising or partner (broker) participation programs. However, no services purchased by our partners shall affect the recommendations on our website, or our opinions, or ratings. Our ratings are based on our objective rating criteria and methodology; and the results are always equally and fairly applied to each broker. The work of our content authors and research groups does not involve any interaction with our advertisers and they do not have access to data concerning the amount of advertising purchased. For over 10 years we consider our independence, absolute openness, and objectivity as our main priority. Please follow the links to each of our affiliated broker’s websites. This will help Tradersunion.com to continue to provide our services to you for free.