Arm forecasts higher-than-expected revenue on surging AI data center demand
Revenue rose 20% to $1.49 billion as Arm said AI data-center adoption is lifting royalty and licensing demand, and shares jumped 12% after hours.
- On Wednesday, Arm Holdings reported fiscal 2026 fourth-quarter revenue of $1.49 billion, beating analyst estimates of $1.47 billion with adjusted earnings per share of $0.60.
- Growth stems from tech companies' heavy investment in artificial intelligence compute, with Arm CEO Rene Haas confirming that demand for the company's new AGI CPU has exceeded initial expectations.
- Licensing and other revenue surged 29% year-over-year to $819 million, while annualized contract value increased 22% to $1.66 billion, driven by accelerated adoption of Arm-based server chips by major hyperscalers.
- Arm projects first-quarter fiscal 2027 revenue of $1.26 billion, exceeding Wall Street's $1.25 billion estimate, though management is securing supply chain capacity to meet AGI CPU demand.
- By fiscal 2031, the company targets $25 billion in revenue and $9 adjusted earnings per share, with the AGI CPU expected to generate $15 billion in sales within five years.
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Arm forecasts higher-than-expected revenue on surging AI data center demand
May 6 : Arm Holdings forecast first-quarter revenue above Wall Street expectations on Wednesday, benefiting from higher adoption of its chip technology as tech companies spend heavily on artificial intelligence compute.Arm shares jumped 12 per cent in after-hours trading.The company expects quarterly r
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