Key Highlights

  • Arm added that it has secured Manufacturing capacity to support that earlier $1 billion opportunity.
  • Arm files as a foreign private issuer, reports in US dollars and has a fiscal year ending March 31.
  • The company called it the third consecutive year since listing with Revenue growth above 20%.
  • Arm said, citing IDC, that spending on Arm-based accelerated servers nearly doubled and surpassed x86 platforms.

Arm Holdings plc (NASDAQ:ARM), the Cambridge, England-based designer of processor architectures, told investors on July 29, 2026 that customer Demand for its Arm AGI CPU now exceeds $2 billion across its fiscal years 2027 and 2028. The short answer: Arm is moving beyond licensing designs and into selling its own Data Center silicon, and it says orders are running ahead of the $1 billion opportunity it had previously outlined.

Arm added that it has secured manufacturing capacity to support that earlier $1 billion opportunity.

What Arm Does And What Changed

Arm licenses its architecture and processor designs to chipmakers and earns royalties on chips that ship using them. Its 20-F describes a newer push into production silicon, including the AGI CPU and compute subsystems.

The AGI CPU was launched on March 24, 2026. Arm named Meta (NASDAQ:META) as lead partner and co-developer on a multi-generation roadmap, and listed Cerebras, OpenAI, Positron and Rebellions as additional integrators.

Listing Structure And Reporting Basis

US investors buy American Depositary Shares on Nasdaq under the ticker ARM. According to the cover of the Form 20-F filed in May 2026, each ADS represents one ordinary share, so per-share figures equate to per-ADS figures. Arm files as a foreign private issuer, reports in US dollars and has a fiscal year ending March 31. It had 1,064,055,252 ordinary shares outstanding at March 31, 2026.

SoftBank Group is the controlling shareholder, making Arm a Nasdaq controlled company with fewer governance protections for other holders.

Reported Results

For fiscal 2026, the year ended March 31, 2026, Arm reported revenue of $4.92 billion, split between Royalty revenue of $2.61 billion and licensing revenue of $2.31 billion. The company called it the third consecutive year since listing with revenue growth above 20%.

For the first quarter of fiscal 2027, ended June 30, 2026, revenue rose 22% year on year to $1.29 billion. Royalty revenue grew 22% to $715 million and licensing revenue 23% to $574 million. Arm said data center royalties more than doubled, helped by Armv9 and compute subsystems, which carry higher royalty rates.

GAAP Operating Income was $91 million, a 7.1% margin, against non-GAAP operating income of $531 million, a 41.2% margin. Non-GAAP free Cash Flow was $665 million, and cash, equivalents and short-term investments stood at $3.89 billion.

Guidance and outlook

For the second quarter of fiscal 2027, Arm guided to revenue of $1.38 billion, plus or minus $50 million, non-GAAP diluted EPS of $0.47, plus or minus $0.04, and non-GAAP operating expenses of about $780 million.

The wide gap between GAAP and non-GAAP operating income, with GAAP operating expenses up 28%, shows that Investment in silicon and research is weighing on reported profitability. Chip sales could also reshape margins in a royalty-led business.

Sector Context

Arm said, citing IDC, that spending on Arm-based accelerated servers nearly doubled and surpassed x86 platforms.

Risks To Watch

The 20-F flags competition from x86 and open-source RISC-V, and the risk that customers build their own processors. The top five customers produced about 57% of revenue, Arm China about 16%, and the PRC about 18%, with export controls a further concern. Arm has no operational control over Arm China. Production silicon adds Supply chain, Yield and inventory risks.

AGI CPU Shipments and Royalties Are the Watch Points

The fiscal second quarter closes on September 30, 2026. Key watch points are AGI CPU shipments, data center royalties and revenue against guidance.