Overview
- Arm shares reached about $242 at new highs, leaving the stock up more than 100% so far in 2026.
- The rally followed early May results that showed $1.49 billion in quarterly revenue, with licensing up 29%, royalties up 11%, and non-GAAP EPS of $0.60 beating estimates.
- Arm launched its first production AGI CPU for data centers with customer commitments rising from $1 billion to over $2 billion in six weeks and Meta as lead co-development partner.
- Data-center traction also showed up in metrics, as data-center royalties more than doubled year over year and annual contract value reached $1.66 billion.
- Analysts lifted price targets to as high as $300 after the update, and investors are weighing a rich valuation, heavier R&D spend, early law firm probes of its licensing model with no charges, and risks tied to SoftBank control, Qualcomm–Nuvia litigation, and China exposure.