CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
ARM posted Mar-Q revenue of $1.49B (+20% Y/Y), slightly beating the $1.47B expectation, with licensing revenue surging 29% to $819M and royalty revenue growing 11% to $671M. EPS of $0.60 beat the $0.58 expectation, while ACV increased 22% Y/Y to $1.66B. The Arm AGI CPU launch represents a strategic inflection point, with customer demand exceeding $2B in FY 27-FY 28, more than double initial projections, and Meta serving as lead partner. Jun-Q guidance came in ahead of expectations with revenue of $1.26B +/- $50M (vs. the $1.25B consensus) and EPS of $0.40 +/- $0.04 (vs. the $0.37 consensus). Data center momentum continues accelerating with ARM holding ~50% CPU share among top hyperscalers as major cloud providers deepen ARM integration, including Google's next-gen TPUs and AWS's $20B+ silicon business. ARM maintains a robust balance sheet with $3.6B cash and no debt, though operating margins compressed to 49.1% from 52.8% due to 33% R&D spending increases supporting next-generation compute technologies.