Arm Revenue Up 27% Amid AI Boom

Arm has reported record quarterly revenue, driven primarily by growing demand for energy-efficient processors used in AI infrastructure.

AI Infrastructure Drives Arm's Business Growth

Arm's revenue reached $1.44 billion in the second quarter of fiscal 2027, up 27% and above analysts' expectations of $1.38 billion.

Revenue from technology licensing increased to $773 million, while royalties from Arm architecture grew 8% to $670 million. Meanwhile, revenue from data center processor shipments continues to double.

This growth reflects the increasing adoption of Arm-based processors to improve server energy efficiency and reduce electricity and cooling costs.

As a Result: Stronger Position in the Server Market

Arm says that the company’s share of server solutions among major cloud providers exceeded 50% in 2025, compared with 15% a year earlier. Arm expects this figure to surpass 60% by the end of 2026.

It is gradually strengthening its position against other processor manufacturers, including Intel and AMD. Central processing units (CPUs) are also in demand because they play an important role in server load processing. For example, Google already uses its custom Arm-based Axion processors alongside its TPU AI accelerators.

Revenue Outlook and Arm Shares

Arm is expanding into selling processors. In March, the company introduced its Arm AGI CPU and received approximately $1 billion in orders. CEO Rene Haas expects these processors to generate $2 billion in revenue across fiscal 2027 and 2028.

Despite the strong results, Arm shares fell approximately 1% in extended trading. This may indicate that investors were hoping for a more mind-blowing forecast amid the AI boom.