โ
๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ
โข Non-GAAP EPS: $0.52 (Est. $0.48) โ , +33% YoY.
โข Revenue: $1.443B (Est. $1.38B) โ , +27% YoY.
โข GAAP EPS: $0.12 (vs. $0.22 YoY).
โข License & Other Revenue: $773M, +50% YoY.
โข Royalty Revenue: $670M, +8% YoY.
โข Non-GAAP Operating Income: $638M, +37% YoY.
โข Non-GAAP Operating Margin: 44.2%, +310 bps YoY.
โข Non-GAAP Gross Margin: 97.9%.
โข Cash & Short-Term Investments: $3.62B.
โ
๐ฏ ๐๐ฎ๐ข๐๐๐ง๐๐
โข Q3 FY2027 Revenue: $1.49Bโ$1.59B, midpoint $1.54B (Est. $1.52B) โ .
โข Q3 FY2027 Non-GAAP EPS: $0.52โ$0.60, midpoint $0.56 (Est. $0.55) โ .
โข Q3 Non-GAAP Operating Expenses: ~$825M.
โข AGI CPU Revenue: Up to $2B across FY2027โFY2028, reiterated with increased confidence.
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๐ ๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ
โข Q2 adjusted EPS beat consensus by ~8.3%, while revenue exceeded estimates by ~4.6%.
โข Licensing revenue surged 50% YoY to $773M, driven by strong IP demand and large licensing agreements.
โข Royalty revenue grew 8% despite smartphone market pressure from higher memory prices.
โข Arm partners shipped more than 10B Arm-based chips in a single quarter for the first time.
โข Arm-based PCs reached approximately 20% of global shipments.
โข Physical AI royalty revenue increased 50% YoY, supported by automotive and autonomous systems.
โข AGI CPU demand continues to accelerate, with increased customer commitments and supply supporting the $2B revenue opportunity.
โข Independent testing showed Arm AGI CPU delivering ~2x performance per rack versus AMD EPYC 9755.
โข NVIDIA's OpenShell architecture uses Arm CPUs and BlueField-4 DPUs for agentic AI security and isolation.
โข Introduced Arm Total Design for Physical AI, bringing together more than 80 ecosystem partners.
โข Quarterly free cash flow declined 73% YoY to $110M, while GAAP net income fell 45% to $130M.
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๐ฌ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐๐ซ๐ฒ
โDemand for our silicon business continues to accelerate, with growing customer commitments giving us even greater confidence in achieving up to $2 billion in Arm AGI CPU revenue across fiscal 2027 and 2028.โ