Data center royalties
Data center royalties more than doubled year over year in the June 2026 quarter.
The numbers
What it is
Cloud and AI servers built on Arm's Neoverse CPU designs pay Arm a royalty on each chip sold.
Why it matters to the stock. This ties Arm's royalty income to the AI data center build-out, which management names as its main growth driver.
News
Arm unveils Neoverse CSS N4 and expands AGI CPU ecosystem for agentic AI servers
On September 8, 2026 Arm announced Neoverse CSS N4, a configurable compute subsystem for partners that build their own data center chips, alongside an expanded AGI CPU ecosystem.
Arm posts record fiscal first-quarter revenue of $1.29 billion, up 22%
Arm reported record first-quarter revenue of $1.29 billion, up 22% from a year earlier, for the quarter ended June 30, 2026.
Arm guides fiscal Q1 2027 revenue to $1.26 billion and EPS to $0.40
Arm forecast revenue of about $1.26 billion for the quarter ending June 30, 2026, plus or minus $50 million, and non-GAAP EPS of $0.40, plus or minus $0.04.