Arm says AGI CPU demand has surpassed $2bn, reports record royalty and licensing results

Arm reported record royalty and licensing revenue during its first quarter of FY2027, with the chip company posting total revenue of $1.29 billion for the three-month period ending June 30.

Royalty revenue was up 22 percent Year-over-Year (YoY) for Q1 2027, totaling $715 million, with data center royalty more than doubling from the same period a year ago, growth which the company attributed to the continued adoption of Arm Neoverse. Licensing revenue grew by 23 percent YoY to $574m.

– Arm

In a letter to shareholders, Arm CEO Rene Haas said the results reflect “two important trends.”

“First, the transition of the data center to Arm continues to accelerate, creating significant opportunities for Arm technology through both Arm AGI CPU silicon and IP royalty revenue. Second, AI is rapidly expanding beyond the cloud… increasing demand for the Arm compute platform across a broad range of devices.”