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

- URL: https://talkfuse.com/story/arm-beats-second-quarter-revenue-estimates-on-ai-and-data-center-demand/
- Published: 2026-11-04T21:07:21+00:00
- Updated: 2026-11-05T03:36:58+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/arm-beats-second-quarter-revenue-estimates-ai-and-data-center-demand-6525466
- Topics: AI, Technology, World

## Key points

- Arm’s second-quarter revenue reached $1.44 billion.
- Licensing income beat forecasts, while royalties fell short.
- The company expects $1.54 billion in third-quarter revenue.

## Summary

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.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.