According to Jin10, Arm reported fiscal second-quarter 2026 revenue of $1.44 billion, up 27% year over year and above the $1.38 billion market estimate. Adjusted earnings per share were $0.52, above the $0.47 estimate. Arm expects third-quarter revenue of about $1.54 billion, broadly in line with the $1.53 billion market estimate.

Data center growth offset weakness in the smartphone market. Arm is shifting from licensing chip architectures to making chips, and expects its in-house CPUs to contribute up to $2 billion in combined revenue in fiscal 2027 and fiscal 2028. CEO Haas said the company is more confident about reaching that revenue target, but its supply capacity is still limiting growth.

Second-quarter licensing revenue rose 50% year over year to $773 million, while royalty revenue increased 8% to $670 million. Arm shares fluctuated after hours following the results; after earlier rising more than 4%, they were down 3.8%.