Arm Holdings Faces Fiscal Q2 Test as AI Demand Meets Smartphone Pressure

Arm Holdings will release fiscal 2027 second-quarter results after markets close Wednesday, Nov. 4, as data-center royalty growth and its outlook draw attention amid pressure on the smartphone market.

Arm forecast revenue of $1.38 billion, with a range of plus or minus $50 million, and non-GAAP earnings per share of $0.47, plus or minus $0.04. Analysts expect revenue of $1.38 billion and non-GAAP earnings per share of $0.48.

Royalties from data-center use were more than twice their year-earlier level in the first quarter. Arm’s non-GAAP operating margin reached 41.2%, up from 39.1% in the same quarter last year. The company put second-quarter operating expenses at about $780 million.

Arm has cited more than $2 billion in customer demand for its AGI CPU across fiscal 2027 and 2028. That figure describes demand for the chip, not shipments or revenue.