Arm Posts Record Q1, Lifts AGI CPU Target to $2B as Data Center Royalties Double
ARM has more than doubled off its 52-week low of $100.02.
Summary
Arm reported record Q1 FYE27 results, with revenue up 22% to $1.29B and non-GAAP EPS of $0.45, beating guidance. The Arm AGI CPU pipeline has doubled to over $2B, and data center royalties more than doubled YoY, underscoring Arm's accelerating AI infrastructure adoption.
Key Events · Earnings and Guidance · ARM
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Record Q1 Revenue and EPS Beat
Total revenue reached $1.289 billion, up 22% YoY, with non-GAAP EPS of $0.45, exceeding the high end of guidance of $0.40 +/- $0.04.
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Arm AGI CPU Pipeline Doubles to $2B
Customer demand for the Arm AGI CPU now exceeds $2 billion across fiscal 2027 and 2028, up from the $1 billion target set last quarter, with new customers added and manufacturing capacity being expanded.
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Data Center Royalties More Than Double
Royalty revenue grew 22% to $715 million, driven by data center royalties more than doubling YoY as Arm Neoverse adoption accelerates, with shipments surpassing 1.5 billion cores.
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Strong Q2 Guidance
Arm guided Q2 FYE27 revenue to $1.38 billion +/- $50 million and non-GAAP EPS to $0.47 +/- $0.04, both above consensus estimates, indicating continued momentum.
Analysis · ARM · Manufacturing
Arm delivered a record quarter, with revenue climbing 22% year-over-year to $1.29 billion and non-GAAP EPS of $0.45, surpassing the high end of guidance. The standout development is the Arm AGI CPU: demand has accelerated beyond initial expectations, pushing the pipeline above $2 billion across fiscal 2027 and 2028 — double the $1 billion target set just last quarter. Data center royalties more than doubled, reflecting the accelerating shift of AI infrastructure to Arm. The company also guided Q2 revenue to $1.38 billion at the midpoint, above consensus, signaling continued momentum. These results reinforce Arm's central role in the AI buildout and its expanding value capture across cloud, edge, and physical AI.
At the time of this filing, ARM was trading at $224.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $260.4B. The 52-week trading range was $100.02 to $452.70. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.