[Arm Q2 Revenue Grows 27%, AI Demand Drives Data Center Business Expansion] According to a Bloomberg report on November 5th, Arm (ARM.O) reported Q2 revenue of $1.44 billion for fiscal year 2026, a 27% year-over-year increase, exceeding market expectations of $1.38 billion; adjusted EPS was $0.52, higher than the expected $0.47. The company expects Q3 revenue of approximately $1.54 billion, largely in line with market expectations of $1.53 billion. Growth in the data center business offset the weakness in the smartphone market. Arm is transforming from a chip architecture licensor to a chip manufacturer, and its self-developed CPUs are expected to contribute up to $2 billion in revenue in fiscal years 2027 and 2028 combined. CEO Haas stated that the company is more confident in achieving this revenue target, but current supply capacity still limits growth. Arm's Q2 licensing revenue grew 50% year-over-year to $773 million, while royalty revenue increased 8% to $670 million. Following the earnings release, Arm's after-hours stock price fluctuated, initially rising over 4% before falling 3.8%.