Arm posts record second quarter as licensing revenue climbs

Arm reported its highest-ever second quarter revenue for fiscal year 2027, with total revenue increasing 27% year over year. The quarter ended September 30, 2026. The company attributed the performance to strong execution and growing demand for its compute platform.

Licensing and other revenue increased 50% year over year, helping drive the record performance. Arm described that growth as an important leading indicator of future royalty growth. Data center royalties doubled year over year, contributing to the company’s royalty business alongside the gains in licensing.

For the first time, Arm’s partners reported shipping more than 10 billion Arm-based chips during the quarter, an increase of 1.5 billion chips year over year. The shipment milestone adds to the scale of a platform already used by more than 30 million developers.