Arm Shares Slip Despite Q2 Double-Beat: Details

Arm Holdings Plc (NASDAQ:ARM) posted its second-quarter fiscal 2027 results after Wednesday’s closing bell, beating estimates on the top and bottom lines with data center royalties more than doubling year-over-year.

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Arm Q2 Details  

Arm reported quarterly earnings of 52 cents per share, which beat the analyst estimate of 47 cents by 8.33%, per Benzinga Pro data. 

Quarterly revenue came in at $1.44 billion, which beat the Street estimate of $1.38 billion.

Arm gave the following revenue breakdown for the quarter:    

• Royalty revenue increased 22% year-over-year to $715 million
• Annualized contract value (ACV), a metric for normalized license and other revenue, increased 13% year-over-year to $1.732 billion 
• License and other revenue increased 23% year-over-year to $574 million

"Arm delivered a record first quarter, with data center royalties more than doubling year over year as the transition of AI infrastructure to Arm continued to accelerate,” said CEO Rene Haas.

“Demand for the Arm AGI CPU has continued to exceed our initial expectations, and our continued work to expand manufacturing capacity with our partners gives us increasing confidence that we can deliver at the scale our customers require," Haas added.

Looking Ahead

Arm expects third-quarter adjusted EPS of 52 cents to 60 cents, versus the 56 cent analyst estimate, and revenue of $1.49 billion, versus the $1.53 billion analyst estimate.

ARM Stock Price: According to data from Benzinga Pro, Arm Holdings stock was down 3.55% to $185 in Wednesday’s extended trading.  

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