Arm's second-quarter revenue was $1.44 billion, above the $1.38 billion analyst estimate, while adjusted profit was 52 cents per share. It projected third-quarter revenue of $1.54 billion, compared with a $1.53 billion estimate.
Arm Holdings beat second-quarter revenue estimates, driven by higher royalty payments and licensing fees from customers deploying its chip architecture in AI-related computing products. Adjusted profit was 52 cents per share, above estimates of 47 cents, and the company projected third-quarter revenue of $1.54 billion, compared with the $1.53 billion average estimate.
Royalty revenue rose 8% to $670 million, versus estimates of $720.8 million. Licensing revenue was $773 million, compared with estimates of $625.1 million.
Arm said its server-chip architecture accounted for more than 50% of deployments at major cloud providers in 2025 and is expected to exceed 60% by the end of 2026. Shares fell about 2% in extended trading. Last month, a Delaware jury found Arm breached parts of its licensing agreement with Qualcomm and interfered with Qualcomm's relationship with Meta, but awarded $2 in damages; disputes over royalties and future licensing terms remain for a judge to decide.
