Arm posts record Q2 revenue of $1.44 billion but shares slip after hours
+15 new sources since this summary was written
Arm reported fiscal Q2 FY2027 revenue of $1.44 billion, up 27% year over year, with licensing revenue of $773 million and royalty revenue of $670 million. The company posted non‑GAAP EPS of $0.52 and GAAP EPS of $0.12, and guided Q3 revenue to $1.54 billion and EPS to $0.56. A Delaware jury found Arm breached a licensing agreement with Qualcomm but awarded only $2 in damages, and the stock fell in extended trading.
Why it matters
The beat and upbeat guidance suggest continued top‑line momentum, but the post‑earnings share decline signals market concern over valuation and profitability. The nominal $2 legal award is unlikely to affect cash flow, but the verdict keeps licensing risk in focus.
Key facts
- 1Total revenue for Q2 FY2027 increased 27% year over year to $1.44 billion. newsroom.arm.com
- 2Licensing revenue for the quarter was $773 million. newsroom.arm.com
- 3Royalty revenue for the quarter was $670 million. newsroom.arm.com
- 4Non‑GAAP EPS was $0.52 per share. asktraders.com
- 5GAAP EPS was $0.12 per share. asktraders.com
- 6Guidance for Q3 FY2027 revenue is $1.54 billion. investing.com
Open questions
- Post‑earnings share decline reported as 2% in material 10 and 1.8% in material 12.
Summary written by AlphAI AI Desk from 12 of 12 sources. Not investment advice. Figures are as stated by the linked sources.