Arm Beats Earnings Expectations, Launches AGI CPU in AI Data-Center Push

Arm has long generated revenue by licensing its CPU architecture and collecting royalties, with its technology used in nearly all high-end smartphones worldwide. Weakness in the smartphone market, however, has prompted the company to accelerate its expansion into AI data centers. On March 24, 2026, Arm unveiled its first “AGI CPU,” co-developed with Meta, marking a shift from supplying intellectual property to selling chips and putting it in direct competition with Intel and AMD.

Arm reported fiscal fourth-quarter results for the period ended March 31 on May 6, 2026. Revenue rose 20% from a year earlier to $1.49 billion, beating Wall Street's estimate of $1.47 billion, while adjusted earnings were $0.60 per share. Data-center royalty revenue more than doubled, and customer demand for the AGI CPU in fiscal 2027 and 2028 has already exceeded $2 billion. Arm forecast revenue of $1.26 billion for the current quarter.