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SEC filingArm Holdings plc reported record Q4 and full-year fiscal 2026 results, with $1.49 billion quarterly revenue and $4.92 billion annual revenue, driven by strong licensing and royalty growth, and announced the Arm AGI CPU as its first production data center silicon, backed by over $2 billion in customer demand for fiscal 2027–2028.
Arm’s Q4 and FY2026 results reflect sustained execution across its dual-revenue model: licensing (IP and CSS) and royalties (driven by chip shipments). The 20% YoY revenue growth to $1.49B — a record — was underpinned by 29% licensing growth ($819M), reflecting strong demand for Armv9 and Neoverse CSS, and 11% royalty growth ($671M), with data center royalties more than doubling — a direct signal of accelerating infrastructure adoption. Non-GAAP EPS hit $0.60 despite a 33% YoY R&D increase ($493M), underscoring disciplined investment in agentic AI capabilities. Full-year revenue of $4.92B (up 23%) and $1.77 non-GAAP EPS mark three consecutive years of >20% revenue growth since IPO, validating platform durability. Critically, the Arm AGI CPU launch is not incremental: it represents a strategic expansion from IP/CSS into production silicon, with $2B+ in committed demand across FY2027–2028 and design wins spanning Meta, Google (Axion CPUs in TPU8), NVIDIA (Vera), Microsoft (Cobalt), and AWS (Graviton). Hyperscaler CPU share now at ~50% confirms scale, while the shift toward Arm-based host processors in accelerator systems (e.g., TPU8i, Vera racks) signals architectural inflection. Management explicitly ties this momentum to agentic AI’s compute demands — forecasting >4x CPU capacity per gigawatt and a $100B+ market by 2030 — positioning Arm not just as an IP licensor but as the foundational silicon platform for next-generation AI infrastructure.