Arm reports record fiscal 2026 results with $4.92 billion revenue, cites accelerating cloud AI momentum and $2 billion customer demand for new Arm AGI CPU product

Arm posted fourth-quarter revenue of $1.49 billion (up 20% year-over-year) and full-year fiscal 2026 revenue of $4.92 billion (up 23% year-on-year). Licensing revenue rose 29% to $819 million in Q4 and 25% to $2.31 billion for the year; royalty revenue increased 11% to $671 million in Q4 and 21% to $2.61 billion for the year.

Cloud AI and data center royalties drove growth, with data center royalty revenue "more than double year-over-year" according to management. Neoverse-based data center royalties have doubled year-on-year, and management expects them "to double year-on-year again" this year. Major cloud providers—Google (pairing Arm Axion CPUs with TPU accelerators), AWS (scaling Graviton), Microsoft (advancing Cobalt for Azure), and Nvidia (announcing Vera, an Arm-based CPU)—are deploying Arm-based chips.

Arm AGI CPU, the company's first production silicon product for data center, is expected to deliver "more than 2 times the performance per rack compared with x86 platforms" and reduce AI data center capital expenditure "by up to $10 billion per gigawatt." Customer demand has grown to "more than $2 billion" across fiscal 2027 and fiscal 2028, more than double the level stated at launch in March. Supply chain capacity remains the gating factor; first revenues from production shipped sales are expected in Q4 of fiscal 2027.