Arm Holdings enters its fiscal second-quarter report with data-center royalties more than doubled year over year, far faster than the 22% increase in overall revenue during its previous quarter.
Arm set the center of its second-quarter revenue outlook at $1.38 billion, with a range of $1.33 billion to $1.43 billion. Its non-GAAP earnings-per-share forecast has a midpoint of $0.47 and spans $0.43 to $0.51. Analysts expect revenue of $1.38 billion and earnings per share of $0.48. Arm expects operating expenses of about $780 million.
The company’s first-quarter results and AGI CPU demand outlook provide recent context. Revenue reached $1.29 billion and royalty revenue totaled $715 million, with each figure 22% above the year-earlier quarter. Arm’s non-GAAP operating margin was 41.2%, compared with 39.1% a year earlier.
Arm has put customer demand for its AGI CPU above $2 billion across fiscal 2027 and 2028. That amount is a demand measure, not a tally of shipments or revenue. The company has also said its secured production capacity could support a $1 billion opportunity over the same period.
Arm is scheduled to release its fiscal second-quarter results after markets close Wednesday, Nov. 4, and discuss them on a call at 5 p.m. ET.
