Arm Posts Higher 1Q Revenue, Profit as AI Demand Drives Growth

By Anvee Bhutani

Arm Holdings posted higher fiscal first-quarter profit and revenue as demand for its chip designs continued to grow across artificial intelligence infrastructure and data centers.

The British semiconductor design company reported a profit of $270 million, or 25 cents a share. That compares with a profit of $130 million, or 12 cents a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were 45 cents a share. Analysts polled by FactSet were expecting 40 cents a share.

Revenue grew 22% to $1.29 billion, beating analyst estimates of $1.26 billion, according to FactSet. Royalty revenue rose 22% to $715 million, helped by more than doubling of data-center royalties, while licensing revenue increased 23% to $574 million.

Chief Executive Rene Haas said demand for the company's Arm AGI CPU has exceeded expectations, with customer demand now surpassing $2 billion across fiscal 2027 and 2028, more than double the $1 billion opportunity the company outlined last quarter. Arm said it has secured manufacturing capacity to support initial deployments and is working with partners to expand production further.

The company also said the transition of AI infrastructure to Arm continued to gain momentum during the quarter, pointing to expanding adoption by major cloud providers and chipmakers including Nvidia, Amazon Web Services, Google, Microsoft and Qualcomm. Arm said shipments of its Neoverse data-center processors have now surpassed 1.5 billion cores.

For the second quarter, the company guided for adjusted earnings in a range of 43 cents to 51 cents a share on revenue between $1.33 billion and $1.43 billion. Analysts currently expect second-quarter earnings of 44 cents a share on revenue of $1.34 billion.

Write to Anvee Bhutani at anvee.bhutani@wsj.com

(END) Dow Jones Newswires

July 29, 2026 16:40 ET (20:40 GMT)