The cloud infrastructure presence of Arm’s processors has expanded to more than 50% of servers at major hyperscalers, up from 15% in 2024. The company said it expects that share to exceed 60% by the end of 2026 as platforms from Amazon, Google, Microsoft and Nvidia increase their usage of its architecture. In a first for the company, Arm’s partners also shipped more than 10 billion chips in a single quarter.
For the second quarter, Arm posted revenue of $1.44B and adjusted earnings per share of 52 cents, beating analyst estimates of $1.38B and 47 cents. Licensing and other revenue grew 50% year-on-year to $773M, though royalty revenue fell to $670M from $715M in the previous quarter. Arm provided a revenue guide for the third quarter between $1.49B and $1.59B.
The chip designer is also diversifying its hardware reach, noting that Arm-based PCs now make up about 20% of global shipments. The company also maintained its guidance on the Arm AGI CPU, citing a potential revenue opportunity of up to $2B across fiscal 2027 and 2028, though it has only secured supply for $1B of that total.