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Arm Holdings plc American Depositary Shares(ARM)Earnings, Financials & Key Ratios
ARM•NASDAQ
$322.24
379.1× P/E·Price updated Jul 6, 2026
AboutArm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.Show more
- Revenue$4.92B+22.8%
- EBITDA$1.16B+14.6%
- Net Income$904M+14.1%
- EPS (Diluted)0.85+13.3%
- Gross Margin92.48%-2.5%
- EBITDA Margin23.52%-6.7%
- Operating Margin18.46%-10.6%
- Net Margin18.37%-7.0%
- ROE11.95%-8.4%
ARM Price & Volume
Arm Holdings plc American Depositary Shares (ARM) stock price & volume — 10-year historical chart
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Architectural Moat Drives Premium Valuation Growth
Investment Thesis • Updated 2026Q4
VerdictNeutral
Growth:Expanding
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Geopolitical and licensing concentration
Key Thesis Takeaways
- Arm Holdings is successfully leveraging the transition to the ARMv9 architecture to drive revenue growth, which reached 20.1% year-over-year in 2026Q4.
- While the company maintains superior gross margins peaking at 97.4%, investors should monitor the significant impact of stock-based compensation, which reached $265 million in 2026Q2, on GAAP profitability.
- Long-term success remains contingent on navigating geopolitical risks in China and maintaining licensing dominance against potential hyperscaler insourcing.
Verdict Logic
while the company exhibits strong architectural dominance, the current P/E ratio of 393.26 suggests that significant future growth is already priced into the shares, warranting caution regarding valuation.
ARM Growth Metrics
Arm Holdings plc American Depositary Shares (ARM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years-
3 Years22.46%
TTM22.79%
Profit CAGR
10 Years-
5 Years-
3 Years19.93%
TTM14.14%
EPS CAGR
10 Years-
5 Years-
3 Years18.56%
TTM12%
Return on Capital
10 Years9.89%
5 Years9.89%
3 Years7.8%
Last Year10.28%
ARM Recent Earnings
Arm Holdings plc American Depositary Shares (ARM) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 10/12 qtrs (91%)●Beat Revenue 9/12 qtrs (82%)
Q2 2026Latest
May 6, 2026Metric
Actual
Est
EPS
$0.60+3.4%
$0.58
Rev
$1.5B+1.1%
$1.5B
Q1 2026
Feb 4, 2026Metric
Actual
Est
EPS
$0.43+4.9%
$0.41
Rev
$1.2B+1.2%
$1.2B
Q4 2025
Nov 5, 2025Metric
Actual
Est
EPS
$0.39+18.6%
$0.33
Rev
$1.1B+7.0%
$1.1B
Q3 2025
Jul 30, 2025Metric
Actual
Est
EPS
$0.35+0.3%
$0.35
Rev
$1.1B-0.8%
$1.1B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 6, 2026 | $0.60vs $0.58+3.4% | $1.5Bvs $1.5B+1.1% |
| Q1 2026 | Feb 4, 2026 | $0.43vs $0.41+4.9% | $1.2Bvs $1.2B+1.2% |
| Q4 2025 | Nov 5, 2025 | $0.39vs $0.33+18.6% | $1.1Bvs $1.1B+7.0% |
| Q3 2025 | Jul 30, 2025 | $0.35vs $0.35+0.3% | $1.1Bvs $1.1B-0.8% |
Based on last 12 quarters of dataView full earnings history →
Latest ARM News
Recent stock market news and headlines for Arm Holdings plc American Depositary Shares (ARM)
Fool - Investing News·Jun 26, 2026
Micron Just Delivered Great News for Intel, AMD, Arm, and Qualcomm Stock InvestorsMicron sees growth ahead for smartphones and PCs.
24/7 Wall Street·Jun 26, 2026
The AI Selloff Is Getting Brutal: 10 Tech Giants Already Deep in Bear Market TerritoryThe AI boom promised to create a new generation of market winners.
24/7 Wall Street·Jun 25, 2026
Is Arm Holdings a Buy Near $347? The Case for Double-Digit UpsideArm (NASDAQ:ARM | ARM Price Prediction) has been one of the wildest rides in semiconductors this year, and the question on every shareholder's mind is whether the current run still has gas in the tank.
24/7 Wall Street·Jun 24, 2026
Arm Holdings vs Advanced Micro Devices: One Winner of The AI Data Center ShowdownArm Holdings (NASDAQ:ARM | ARM Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) both reported earnings within 24 hours of each other in early May.
Peers Comparison
Key metrics vs top competitors for Arm Holdings plc American Depositary Shares (ARM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $322.24 | $342.86B | 379.11 | 22.79% | 18.37% | 11.95% | — | |
| $44.64 | $1.24B | -101.45 | 2.49% | -10.47% | -3.89% | — | |
| $442.27 | $84.69B | 55.01 | 15.12% | 8.91% | 2.64% | — | |
| $375.77 | $103.64B | 92.55 | 14.12% | 21.18% | 21.06% | — | |
| $186.48 | $196.55B | 37.22 | 13.66% | 22.31% | 40.19% | — | |
| $122.20 | $613.57B | -2074.70 | -0.47% | -5.9% | -2.68% | — |
Compare ARM vs Peers
Arm Holdings plc American Depositary Shares (ARM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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ARM Frequently Asked Questions
Arm Holdings plc American Depositary Shares (ARM) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Arm Holdings plc American Depositary Shares's revenue?
Arm Holdings plc American Depositary Shares (ARM) reported $4.92B in revenue for fiscal year 2026. This represents a 82% increase from $2.70B in 2022.
How fast is Arm Holdings plc American Depositary Shares growing?
Arm Holdings plc American Depositary Shares (ARM) grew revenue by 22.8% over the past year. This is strong growth.
Is ARM profitable?
Yes, Arm Holdings plc American Depositary Shares (ARM) is profitable, generating $904.0M in net income for fiscal year 2026 (18.4% net margin).
Dividend & Returns
What is ARM's return on equity?
Arm Holdings plc American Depositary Shares (ARM) has a return on equity (ROE) of 12.0%. This is reasonable for most industries.
What is Arm Holdings plc American Depositary Shares's free cash flow?
Arm Holdings plc American Depositary Shares (ARM) generated $972.0M in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.