Arm beats second-quarter revenue estimates on AI and data-center demand

Arm beat analysts’ revenue and profit estimates for its second quarter, as customers’ use of its chip architecture in AI and data-centre products lifted licensing income. The results underline how demand for power-efficient processors is benefiting Arm as cloud companies build custom chips for AI workloads.

Revenue reached $1.44 billion, against an average forecast of $1.38 billion, and adjusted earnings were 52 cents per share, compared with 47 cents expected. Licensing revenue was $773 million, above estimates of $625.1 million, while royalties rose 8 per cent to $670 million, below the $720.8 million forecast. Arm expects third-quarter revenue of $1.54 billion; its shares fell about 2 per cent in after-hours trading.