Monday, 9 November 2026
Silicon Analytica
Every AI story is a chip story.
Chart 30 · This quarter's big themes

Royalties were 53.1% of Arm's revenue in FY2026: $2.6B, against $2.3B from licences

FY2025 – Q2 FY2027

By fiscal year (ending March)US$ per fiscal yearRoyalty revenueLicense and other revenue$0$2B$4B$6BFY2025FY2026Royalty revenue, FY2025: $2.2B (54.1%) (Reported)License and other revenue, FY2025: $1.8B (45.9%) (Reported)$4.0BRoyalty revenue, FY2026: $2.6B (53.1%) (Reported)License and other revenue, FY2026: $2.3B (46.9%) (Reported)$4.9BLatest quarter, Q2 FY2027US$Royalty: $670M · 46.4% (Reported)Royalty$670M46.4%Licence and other: $773M · 53.6% (Reported)Licence and other$773M53.6%Source: Arm Holdings 20-F and 6-K filings (revenue by type) · shares are Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/data/charts/arm-royalty-vs-licence
  • Calculated share = royalty revenue ÷ (royalty + licence and other revenue) for the same period.
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Arm earned $2.6B in royalties and $2.3B in licence and other revenue in FY2026, against $2.2B and $1.8B in FY2025.

In Q2 FY2027, royalties were $670M (46.4% of revenue).

Royalties follow chip shipments using Arm designs, so they lag licence deals by years; licence revenue is lumpier because it depends on when contracts are signed.

Only FY2025 and FY2026 are stored for the annual split.

Related

Companies:Arm HoldingsQualcommNVIDIA
Earnings:Arm Q2 FY2027 earnings
Compare:Arm vs SynopsysQualcomm vs MediaTekNVIDIA vs AMD

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