Company Overview
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. It provides its products and services in the United States, China, Japan, Taiwan, Korea, and internationally. The company was founded in 1990 and is based in Cambridge, United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.
Why Investors Should Care
Net profit has compounded at 19.9% per year over the last five years.
Revenue has grown at a 22.5% CAGR over the past five years.
Maintains a net profit margin of 20.2%.
Carries low leverage with a debt-to-equity ratio of 0.06.
Generates positive free cash flow, funding growth and shareholder returns internally.
Recent Developments
- Mar 2026 Revenue of $4.92B (+22.8% YoY); net profit $904.00M.
- Trailing 12 Months Year-on-year growth — revenue +22.4%, earnings +108.3%.
- 5-Year Trend Long-term compounding — revenue CAGR 22.5%, profit CAGR 19.9%.
Growth & Price Performance
Compounded Sales Growth
| 5 Years: | 22.46% |
| 1 Year: | 22.40% |
Compounded Profit Growth
| 5 Years: | 19.93% |
| 1 Year: | 108.30% |
Stock Price Performance
| 1 Year: | +78.03% |
| 6 Months: | +120.40% |
| 3 Months: | -26.49% |
| 1 Month: | -12.07% |
Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.
CPU IP (Neoverse, Cortex) embedded in nearly every AI smartphone, AI PC, and Grace/Bergamo server SoC.
- AI-capable CPU/NPU IP Arm licenses CPU, GPU and neural-processing IP that powers AI inference in virtually every smartphone and increasingly in data-centre and edge AI chips.
- Compute Subsystems (CSS) Pre-integrated CSS platforms let customers build AI-capable chips faster, raising Arm's royalty content per device.
- Data-centre & AI design wins Arm-based server and AI silicon (including hyperscaler custom chips) expand its royalty base into high-value AI compute.
- Ubiquitous, royalty-rich IP model with ~98% gross margins — exposure to AI across mobile, edge and data centre.
- Rising royalty content per chip (more AI cores) is a structural growth lever.
- Strong ~20% five-year revenue CAGR with a capital-light model.
- Very high beta (~3.8) and a rich valuation price in aggressive AI-royalty expansion.
Curated from public filings and analyst commentary; figures are illustrative.
Price Chart
Technical Trend
Computed from daily close history using EMA cross, slope, and RSI signals.
Note: intraday data is not stored locally. “Hourly” uses the most recent 10 daily candles as a short-term proxy.
Fundamental Growth Charts
No fundamental data available for this stock.
Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.
PROS
- Excellent profit margin of 20.2%.
- Compounding revenue at 22.5% over 5 years.
- Profit CAGR of 19.9% over 5 years.
- Generates positive free cash flow.
- In a confirmed uptrend (50-DMA above 200-DMA).
CONS
- Trading at a high P/E of 259.9.
- Trading 42.6% below its 52-week high.
* The pros and cons are auto-generated from financial metrics.
Valuation
Growth (CAGR)
Profitability & Returns
Balance Sheet & Liquidity
Ownership
Financial Snapshot
Peer comparison
Peer companies in the same sector (Technology).
| # | Name | CMP $ | P/E | Mkt Cap | Div Yld % | ROCE % | ROE % | Rev CAGR 5Y % | Profit CAGR 5Y % |
|---|---|---|---|---|---|---|---|---|---|
| 1 | ARM Arm Holdings plc NDXAITECH | 252.09 | 259.89 | $269.23B | 0.00% | 9.40% | 13.35% | 22.46% | 19.93% |
| 2 | NVDA NVIDIA Corporation NDXSPXR3KAITECH | 230.36 | 35.28 | $5.58T | 0.46% | 74.66% | 114.29% | 24.64% | 32.12% |
| 3 | AAPL Apple Inc. NDXSPXR3KTECH | 319.97 | 36.69 | $4.67T | 0.35% | 68.72% | 148.75% | 1.81% | 3.92% |
| 4 | MSFT Microsoft Corporation NDXSPXR3KAITECH | 499.70 | 27.85 | $3.71T | 0.73% | 26.33% | 34.04% | 9.93% | 11.90% |
| 5 | TSM Taiwan Semiconductor Manufacturing Company Limited AITECH | 426.34 | 37.46 | $2.21T | 0.91% | 30.20% | 39.97% | 18.94% | 19.57% |
| 6 | AVGO Broadcom Inc. NDXSPXR3KAITECH | 357.90 | 59.55 | $1.70T | 0.62% | 16.70% | 37.28% | 17.04% | 54.08% |
| 7 | MU Micron Technology, Inc. NDXSPXR3KAITECH | 1,016.59 | 22.97 | $1.15T | 0.06% | 13.69% | 66.64% | 13.68% | 26.02% |
| 8 | AMD Advanced Micro Devices, Inc. NDXSPXR3KAITECH | 477.57 | 122.14 | $779.62B | 0.00% | 5.47% | 10.20% | 11.81% | 66.28% |
| 9 | ASML ASML Holding N.V. NDXAITECH | 1,714.88 | 58.49 | $658.69B | 0.53% | 42.97% | 53.94% | 15.55% | 19.55% |
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios
Quarterly Results
Figures in USD.
| Metric | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Revenue | - | 1.24B | 1.05B | 1.14B | 1.24B | 1.49B |
| Cost of Revenue | - | 28.00M | 30.00M | 29.00M | 30.00M | 32.00M |
| Gross Profit | - | 1.21B | 1.02B | 1.11B | 1.21B | 1.46B |
| Operating Expenses | - | 803.00M | 909.00M | 943.00M | 1.02B | 1.02B |
| Operating Income | - | 410.00M | 114.00M | 163.00M | 191.00M | 440.00M |
| EBITDA | - | 459.00M | 174.00M | 218.00M | 254.00M | 511.00M |
| Interest Expense | - | - | - | - | - | - |
| Pretax Income | - | 144.00M | 146.00M | 302.00M | 228.00M | 481.00M |
| Tax Provision | - | -66.00M | 16.00M | 64.00M | 5.00M | 168.00M |
| Net Income | - | 210.00M | 130.00M | 238.00M | 223.00M | 313.00M |
| Diluted EPS | - | 0.20 | 0.12 | 0.22 | 0.21 | 0.29 |
Profit & Loss (Annual)
Figures in USD.
| Metric | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Revenue | - | 2.68B | 3.23B | 4.01B | 4.92B |
| Cost of Revenue | - | 106.00M | 154.00M | 121.00M | 121.00M |
| Gross Profit | - | 2.57B | 3.08B | 3.89B | 4.80B |
| Operating Expenses | - | 1.90B | 2.96B | 3.06B | 3.89B |
| Operating Income | - | 678.00M | 117.00M | 831.00M | 908.00M |
| EBITDA | - | 848.00M | 279.00M | 1.01B | 1.16B |
| Interest Expense | - | - | - | - | - |
| Pretax Income | - | 671.00M | 212.00M | 720.00M | 1.16B |
| Tax Provision | - | 147.00M | -94.00M | -72.00M | 253.00M |
| Net Income | - | 524.00M | 306.00M | 792.00M | 904.00M |
| Diluted EPS | - | 0.51 | 0.29 | 0.61 | 0.85 |
Balance Sheet (Annual)
Figures in USD.
| Metric | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Total Assets | - | 6.87B | 7.93B | 8.93B | 10.70B |
| Current Assets | - | 3.54B | 4.20B | 4.83B | 6.24B |
| Cash & Equivalents | - | 1.55B | 1.92B | 2.08B | 2.75B |
| Inventory | - | - | - | - | - |
| Receivables | - | 999.00M | 781.00M | 1.11B | 1.30B |
| Total Liabilities | - | 2.81B | 2.63B | 2.09B | 2.42B |
| Current Liabilities | - | 1.36B | 1.50B | 929.00M | 1.04B |
| Long Term Debt | - | - | - | - | - |
| Total Debt | - | 221.00M | 226.00M | 356.00M | 457.00M |
| Total Equity | - | 4.05B | 5.29B | 6.84B | 8.29B |
| Shares Outstanding | - | 1.03B | 1.04B | 1.06B | 1.06B |
Cash Flows (Annual)
Figures in USD.
| Metric | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Operating Cash Flow | - | 739.00M | 1.09B | 397.00M | 1.52B |
| Investing Cash Flow | - | -138.00M | -516.00M | -35.00M | -325.00M |
| Financing Cash Flow | - | -42.00M | -208.00M | -202.00M | -548.00M |
| Capital Expenditure | - | -93.00M | -143.00M | -239.00M | -575.00M |
| Free Cash Flow | - | 646.00M | 947.00M | 158.00M | 949.00M |
| Net Change in Cash | - | 559.00M | 366.00M | 160.00M | 651.00M |
Ratios (Annual)
Figures in %.
| Metric | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Gross Margin % | - | 96.0% | 95.2% | 97.0% | 97.5% |
| Operating Margin % | - | 25.3% | 3.6% | 20.7% | 18.5% |
| Net Margin % | - | 19.6% | 9.5% | 19.8% | 18.4% |
| ROE % | - | 12.9% | 5.8% | 11.6% | 10.9% |
| ROCE % | - | 12.3% | 1.8% | 10.4% | 9.4% |
Shareholding Pattern
Top Institutional Holders
| # | Holder | % Held | Shares | Value |
|---|---|---|---|---|
| 1 | Invesco Ltd. | 1.20% | 12.82M | $3.06B |
| 2 | Dz Bank Ag Deutsche Zentral Genossenschafts Bank, Frankfurt Am Main | 0.61% | 6.50M | $1.55B |
| 3 | Capital World Investors | 0.41% | 4.33M | $1.04B |
| 4 | Arrowstreet Capital, Limited Partnership | 0.38% | 4.09M | $978.84M |
| 5 | FMR, LLC | 0.38% | 4.06M | $971.25M |
| 6 | Goldman Sachs Group Inc | 0.27% | 2.92M | $698.72M |
| 7 | Van Eck Associates Corporation | 0.24% | 2.60M | $621.67M |
| 8 | Capital Research Global Investors | 0.22% | 2.40M | $574.06M |
| 9 | Morgan Stanley | 0.20% | 2.16M | $515.97M |
| 10 | Capital International Investors | 0.19% | 2.05M | $490.11M |
Analyst View
Analyst aggregate. Targets and ratings update periodically; not investment advice.
Latest News
Recent headlines for ARM
ARM Stock Soars On This Nvidia Catalyst – Analysts Raise Targets On Agentic AI Demand - Stocktwits
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Arm Expands Into AI Accelerators With Samsung — But It’s Not the Data Center Goldmine Investors Hope For - Yahoo Finance
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Arm Expands Into AI Accelerators With Samsung - But It's Not the Data Center Goldmine Investors Hope For - 24/7 Wall St.
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Arm Holdings Stock (ARM) Opinions on Recent Earnings and AI Expansion - quiverquant.com
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Mortgage Applications Rebound Modestly as ARM Share Hits Five-Week High - Mortgage News Daily
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Why Arm Holdings Stock Fell on Tuesday - The Motley Fool
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ARM — Frequently Asked Questions
What is the current share price of Arm Holdings plc (ARM)?
As of 2026-09-07 16:24 PDT, Arm Holdings plc (ARM) trades at $252.09 on NasdaqGS. Its 52-week range is $104.55 to $439.46.
What is the market capitalisation of ARM?
Arm Holdings plc (ARM) has a market capitalisation of $269.23B on NasdaqGS.
What is the P/E ratio of ARM?
ARM trades at a trailing price-to-earnings (P/E) ratio of 259.89. The industry average P/E is 32.42. Its price-to-book (P/B) ratio is 34.97.
What is the return on equity (ROE) of ARM?
ARM has a return on equity (ROE) of 13.35%. Its return on capital employed (ROCE) is 9.40%.
Is ARM a good stock to buy?
This page provides a data-driven analysis of Arm Holdings plc (ARM), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.