Arm Holdings plc: Beat — EPS $0.52, Revenue $1.44B
Earnings BeatQ2 2027 · After-market
Did Arm Holdings plc (ARM) beat earnings today?
Yes, Arm Holdings plc (ARM) beat Wall Street analyst expectations for Q2 2027, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+8.33% surprise
$0.52Actual
Expected: $0.48
vs. year ago +33.0%
Total Revenue+4.57% surprise
$1.44BActual
Expected: $1.38B
vs. year ago +27.0%
Released Nov 04 · 4:04 PM ET
Earning Report
| Metric | Q2 FYE27 | Q2 FYE26 | YoY Change % |
|---|---|---|---|
| Revenue | $1.44B | $1.14B | +27.0 |
| Revenue detail — reported lines | |||
| └─License and other revenue | $773.00M | $515.00M | +50.0 |
| └─Royalty revenue | $670.00M | $620.00M | +8.0 |
| Net income | $130.00M | $238.00M | -45.0 |
| GAAP Basic EPS | $0.12 | $0.22 | -45.0 |
| GAAP Diluted EPS | $0.12 | $0.22 | -45.0 |
| Non-GAAP Net Income | $566.00M | $417.00M | +36.0 |
| Non-GAAP Basic EPS | $0.53 | $0.39 | - |
| Non-GAAP Diluted EPS | $0.52 | $0.39 | +33.0 |
Financial Outlook / Guidance
| Metric | Q3 FYE27 Outlook | |
|---|---|---|
| Guidance | Expected | |
| Revenue | $1.54bn +/- $50m | $1.52BBeat +1.32% |
| Non-GAAP operating expense | ~$825m | — |
| Non-GAAP fully diluted earnings per share | $0.56 +/- $0.04 | $0.55In-Line |
Q3 FYE27 Outlook
- Revenue
- Guidance$1.54bn +/- $50mExpected$1.52BBeat +1.32%
- Non-GAAP operating expense
- Guidance~$825mExpected—
- Non-GAAP fully diluted earnings per share
- Guidance$0.56 +/- $0.04Expected$0.55In-Line
Business Highlights
- ➤Arm-based server share at top hyperscalers exceeded 50% in calendar 2025.
- ➤Introduced Neoverse CSS N4 for CPUs, networking, infrastructure management and security.
- ➤CSS N4 delivers up to 2x performance per socket versus the prior generation.
- ➤Secured Arm AGI CPU purchase orders from multiple customers through calendar 2027.
- ➤First Arm AGI CPU commercial deliveries remain on track for fiscal Q4’27.
- ➤Oracle Cloud Infrastructure plans to offer Arm AGI CPU instances in 2027.
- ➤NVIDIA Vera CPU is generally available on Oracle Cloud Infrastructure and deployed with OpenAI.
- ➤Arm-based PCs reached approximately 20% of global shipments.
- ➤Launched Arm Total Design for Physical AI with more than 80 companies.
- ➤Partners reported more than 10 billion Arm-based chips shipped during the quarter.
- ➤Arm’s platform is used by more than 30 million developers.
Management Commentary
Rene Haas, CEO, Arm
“Arm delivered its fifth consecutive quarter of revenue growth above 20%, reflecting the strength of our business as AI drives increasing demand for compute. Our IP business continues to grow, with 50% licensing growth demonstrating the increasing investment in the power efficient Arm compute platform which will drive even higher royalty growth in the future. Additionally, demand for our silicon business continues to accelerate, with growing customer commitments giving us even greater confidence in achieving up to $2 billion in Arm AGI CPU revenue across fiscal 2027 and 2028. Arm is becoming the compute platform of choice as AI transforms every market.”