From Dow Jones via Morningstar, November 5:
Arm says its rising revenue allows it to spend on research and development that helps meet growing customer demand
Arm's stock rose about 3.5% in after-hours trading Wednesday.
Shares of Arm Holdings PLC were climbing in Wednesday's extended session after the chip maker reported its third consecutive quarter of more than $1 billion in revenue.
The chip designer reported revenue of $1.14 billion for the second quarter of fiscal year 2026, reflecting a 34% increase from the year before, and topping estimates for $1.06 billion on FactSet. Its royalty revenue grew 21% from last year to $620 million, also topping the FactSet consensus for $587 million.
Arm (ARM) attributed growth in that segment, which includes the smartphone, data-center and automotive markets, to "continued adoption of Arm technology with higher royalty rates per chip," and higher uptake in data centers.
"In the data center, access to power has now become the bottleneck," which has fueled increased demand for Arm products, CEO Rene Haas said on the earnings call.
Meanwhile, Arm's licensing revenue was $515 million, representing 56% growth from the previous year.
"Demand for the Arm platform is strong as more leading companies signed high-value licenses for next-generation technologies," the company said in a shareholder letter.
Arm also delivered upbeat guidance for the current quarter, projecting $1.225 billion in revenue and 41 cents in adjusted earnings per share, whereas analysts were modeling $1.111 billion and 35 cents, respectively....
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Here's the release from the company.
