Arm Q2 FYE26 revenue surpasses $1 billion for third consecutive quarter

Today (November 5, 2025), Arm (NASDAQ: ARM) published a letter to its shareholders containing results for the second quarter of fiscal year 2026 ended September 30, 2025. The infographic below offers the key highlights.

Here are what the results mean and how they were achieved:

• Surpassing $1 billion for the third consecutive quarter, as Arm reported second-quarter revenue of $1.14 billion, up 34% year-over-year. Revenue was above the high end of guidance, and non-GAAP EPS finished above the high end.

• Royalty revenue rose 21% year-over-year to $620 million, driven by the continued adoption of Arm technology with higher royalty rates per chip, such as Armv9 and Arm Compute Subsystems (CSS), and increased usage of Arm-based chips in data centers.

• Three new Arm CSS licenses signed in the quarter, one each in smartphones, tablet, and data centers, bringing the total to 19 licenses with 11 companies, with five customers already shipping CSS-based chips. Samsung will also leverage CSS for its Exynos family of chipsets, which means the top four Android phone vendors are now shipping CSS-powered devices.
  • In Q2, Arm launched the Lumex CSS platform, our most advanced smartphone platform to date, delivering up to 5x faster AI performance on a new generation of Arm C1 CPUs with Arm Scalable Matrix Extension 2 (SME2) and up to 3x the energy savings, alongside up to 2x AI and graphics performance through the integration with the new Arm Mali G1-Ultra GPU compared to the prior generations. The ecosystem is already embracing Lumex, with leading applications, such as Alipay, Gmail, and YouTube, accelerating on-device inference and real-time personalization, and partners, such as MediaTek, designing Lumex configurations into its next-generation chips for new flagship smartphones from Oppo and vivo.

• Increasing momentum in Cloud AI, with over 1 billion Arm Neoverse CPU cores shipped to run the complex AI and hyperscaler workloads that define modern computing. Arm’s share of CPUs deployed by top hyperscalers is expected to reach nearly 50% this year, reinforcing Arm’s position as the new unit of compute in the AI data center.
  • Google has already migrated 30,000+ cloud applications to Arm, including Gmail and YouTube, and intends to migrate most of its 100,000+ applications.
  • In the quarter, Microsoft expanded the Arm-powered Cobalt 100 to 29 regions globally, and NVIDIA secured over half a trillion dollars in expected orders through 2026 as demand for its Arm-based Grace Blackwell superchips remains exceptionally strong.
  • The addition of five new Stargate AI data center sites, all anchored on Arm as a strategic compute platform, underscore Arm’s role in powering AI at scale.

• Powering the next era of AI from milliwatts to megawatts. In October, Arm and Meta announced a strategic partnership that highlights the full range of the Arm compute platform, spanning AI-enabled wearables to AI data centers running Neoverse CPU cores that power the recommendation engines behind Meta’s family of applications including Facebook and Instagram. By co-designing across the entire compute stack, Arm is enabling a consistent software architecture from smart glasses to the data center that allows Meta to scale its AI capabilities.

• The next frontier of AI at the Edge and in the physical world:
  • Google’s Pixel 10, powered by the Arm-based Tensor G5 chip, runs Gemini up to 2.6x faster and 2x more efficiently than prior generations.
  • In PCs, NVIDIA began shipping its Arm-based desktop DGX Spark – a compact desktop supercomputer used for local model training, fine tuning and inference – bringing data center capabilities directly to the desk of developers and accelerating on-device AI innovation.
  • In automotive, a flagship EV from a leading automaker, built on Arm’s compute platform, was introduced to market, and Tesla introduced its next-generation AI5 chip, which is designed for its upcoming vehicles and robots and based on Arm’s compute platform, delivering up to 40x faster AI performance than the prior generation.

• Arm’s AI leadership is amplified by the broadest developer ecosystem in computing, which now exceeds over 22 million developers and represents more than 80% of the global total.
  • In October, Arm introduced an agentic AI integration with GitHub Copilot, enabling millions of developers to automate and optimize cloud workload migration to Arm-based infrastructure.  
  • Arm KleidiAI continues to advance AI software performance across leading frameworks, including up to 2.5x faster performance on transformer-based models in PyTorch and improving on-device speed and energy efficiency by more than 20% on ExecuTorch.
  • Arm contributed the Foundation Chiplet System Architecture (FCSA) standard to accelerate chiplet design and integration, while Arm Total Design tripled its membership, adding 10 new members at the Open Compute Project (OCP) Global Summit including Marvell.

The full letter to shareholders is available on the Arm investor relations website. Information about the Arm earnings conference call can be found here.