Arm Q1 Revenue Surges 22% to $1.29B; AGI CPU Orders Double

Arm reported Q1 revenue of $1.29B, up 22% YoY, beating estimates. Data center royalties doubled, and AGI CPU orders expanded to $2B, signaling strong AI infrastructure demand.

Woofun AI reports that Arm posted first-quarter fiscal 2027 revenue of $1.29 billion, representing a 22% year-on-year increase and surpassing the market consensus of $1.26 billion. Adjusted earnings per share reached $0.45, up 29% from the prior year, while adjusted net profit climbed 28% to $480 million. Licensing revenue grew 23% to $574 million, and royalty revenue increased 22% to $715 million, with data center royalties more than doubling.

Since the March launch of the Arm AGI CPU, customer orders have expanded from an initial $1 billion projection to over $2 billion. Cumulative shipments of Arm Neoverse data center processors have exceeded 1.5 billion cores, with the most recent 500 million delivered within nine months. NVIDIA Vera has entered full production, and AWS secured a multi-year deal with Meta for tens of millions of Graviton5 cores. Qualcomm also announced plans for the Arm-based Dragonfly C1000 data center CPU. Second-quarter guidance stands at approximately $1.38 billion in revenue and $0.47 in adjusted EPS, both above average expectations but below some optimistic forecasts. The company noted that smart mobile royalty growth will decelerate, leading to a post-market stock decline of roughly 7%.