Arm Beats Q1 Estimates, Raises AI Chip Demand Outlook to $2B
ARM has more than doubled off its 52-week low of $100.02.
Summary
Arm delivered a strong fiscal Q1, with revenue of $1.29B (up 22% YoY) and adjusted EPS of $0.45, both beating consensus. Royalty revenue jumped 22% to $715M, driven by a doubling of data-center royalties, while licensing revenue rose 23% to $574M. The standout: CEO Rene Haas said demand for the Arm AGI CPU now exceeds $2B across FY27-28, double the $1B opportunity cited last quarter, and the company has secured manufacturing capacity for initial deployments. Q2 guidance of $1.33B-$1.43B in revenue and $0.43-$0.51 adjusted EPS brackets consensus, signaling continued momentum. This follows the record FY26 results and the CEO's June comment that the $15B AI chip revenue goal is ahead of schedule. The raised AGI CPU demand outlook materially lifts the growth trajectory, and the data-center royalty doubling confirms Arm's expanding role in AI infrastructure.
At the time of this announcement, ARM was trading at $228.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $260.4B. The 52-week trading range was $100.02 to $452.70. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.