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Arm Holdings: From Meta to Hyperscalers—How Strategic Partnerships Are Expanding Its AI Footprint!

Arm Holdings has demonstrated significant growth and momentum in the second quarter of fiscal year 2026, driven largely by increased demand for artificial intelligence (AI) computing across multiple sectors. The company reported a revenue of $1.14 billion, representing a 34% increase compared to the previous year, marking its third consecutive quarter surpassing the billion-dollar mark. This growth has been primarily attributed to record-high royalty revenues, which surged 21% year-over-year to $620 million, bolstered by demand in key markets such as data centers, smartphones, automotive, and IoT. The company’s licensing revenue also saw a substantial 56% increase to $515 million, highlighting the continued adoption of Arm’s architectures for next-generation AI product development. The introduction of Arm’s Neoverse compute platform has been particularly influential in the data center sector, doubling its royalties year-on-year due to its power efficiency and performance.