Arm Holdings 2Q Sales Climb 27% on AI Demand
By Katherine Hamilton
Arm Holdings recorded 27% growth in revenue in its fiscal second quarter, as artificial intelligence demand fuels growth.
The semiconductor company posted a profit of $130 million, or 12 cents a share, compared with $238 million, or 22 cents a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were 52 cents, ahead of the 48 cents anticipated by analysts, according to FactSet.
Revenue rose 27% to $1.44 billion. Analysts surveyed by FactSet forecast revenue of $1.38 billion.
AI is driving strong demand for compute across cloud, devices and autonomous systems, Arm said. The intellectual property business, where partners buy Arm technology and deploy Arm-based silicon; and the new silicon business, which includes Arm CPUs; are both driving growth.
Arm is also gaining market share across the data center sector, as AI developers look for power efficiency and performance. Data center royalties doubled year over year.
In the current third quarter, Arm expects revenue of $1.54 billion, plus or minus $50 million. That would be ahead of the $1.52 billion that Wall Street is projecting.
The company anticipates 56 cents a share, plus or minus 4 cents a share, in adjusted earnings for the third quarter. Analysts are forecasting 55 cents a share.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
November 04, 2026 16:30 ET (21:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
3 Stocks to Sell and 3 Stocks to Buy for November
3 of the Best Dividend Stocks to Own
The 10 Best Companies to Invest in Now
This Once-Hot AI Stock Now Looks Deeply Undervalued
United States