Arm announced on November 4, 2026, that it had published its shareholder letter for fiscal Q2 FY2027, which ended September 30. The quarter’s reported revenue rose 27% year over year to $1.443 billion, while GAAP net income fell 45%. The detailed financial figures come from 10jqka’s results report and a GuruFocus earnings-call summary syndicated by Yahoo Finance. Arm’s announcement gives the reporting period and letter-publication date.
Licensing grew faster than royalties
Licensing and other revenue rose 50% to $773 million, while royalty revenue increased 8% to $670 million. That makes the difference in growth rates clear: licensing expanded much faster than royalties in the reported quarter.
| Measure | Reported figure | Period or comparison |
| Total revenue | $1.443 billion | Fiscal Q2 FY2027; up 27% year over year |
| License and other revenue | $773 million | Fiscal Q2 FY2027; up 50% year over year |
| Royalty revenue | $670 million | Fiscal Q2 FY2027; up 8% year over year |
| GAAP net income | $130 million | Fiscal Q2 FY2027; down 45% year over year |
| Non-GAAP net income | $566 million | Fiscal Q2 FY2027; up 36% year over year |
| Non-GAAP diluted EPS | $0.52 | Fiscal Q2 FY2027; up 33% year over year |
| Revenue guidance | $1.54 billion ± $50 million | Fiscal Q3 FY2027 |
| Non-GAAP operating expenses | About $825 million | Fiscal Q3 FY2027 guidance |
| Non-GAAP diluted EPS guidance | $0.56 ± $0.04 | Fiscal Q3 FY2027 |
GAAP and non-GAAP income moved in opposite directions
GAAP net income was reported at $130 million, down 45% year over year; non-GAAP net income was $566 million, up 36%. These are separate accounting measures, so their different movements should be considered on their respective bases.
In discussing the GAAP comparison, 10jqka cited a $46.6 million fair-value loss on listed equity investments and a $4.9 million expected credit loss related to Arm China. The year-earlier comparison included a $131 million pretax gain from the sale of the Artisan foundational IP business to Cadence. These were among the items identified in the reported comparison. 10jqka’s account also gives the quarter’s GAAP and non-GAAP figures.
Data-center growth and the AGI CPU outlook
Arm’s data-center royalties doubled year over year, while physical-AI royalties rose 50%, according to the two earnings reports. Arm’s architecture accounted for more than half of server shipments at leading hyperscalers in calendar 2025, up from 15% in 2024; Arm forecast that share would exceed 60% by the end of calendar 2026. 10jqka and the GuruFocus summary reported these figures.
Arm’s AGI CPU outlook is for up to $2 billion in revenue across fiscal 2027 and fiscal 2028 combined. The first commercial deliveries were expected in fiscal Q4 FY2027. The two-year figure is an outlook, separate from the $1.443 billion reported for fiscal Q2.
Keep the AGI CPU’s $2 billion figure in the two-year outlook column; it is not revenue reported for the quarter.
Arm’s fiscal Q3 FY2027 guidance
Arm’s reported guidance for fiscal Q3 FY2027 was revenue of $1.54 billion, plus or minus $50 million, and non-GAAP diluted earnings per share of $0.56, plus or minus $0.04. The earnings-call summary also put non-GAAP operating expenses at about $825 million. These are guidance figures for the next quarter, not Q2 results.
