ARM: As big clients ‘pull back,’ will sky-high valuations first cool off? - 36Kr

ARM’s Q1 FY2027 revenue rose 22% year over year to $1.29 billion, roughly in line with expectations but short of a strong beat.

Both licensing and royalty revenue grew, but higher R&D and SG&A weighed on operating margin.

The company cut its full-year royalty growth guidance, stopped disclosing RPO, and did not raise its outlook for new CPU demand.

With AI infrastructure spending turning more cautious, the results may weaken confidence in ARM’s high-growth, high-valuation story.