ARM Holdings PLC ARM

Information TechnologySemiconductors & Semiconductor EquipmentUnited Kingdom

Last close 196.79 USD on Nov 2, 2026, +80.0% year to date

Quant rating

Quant rating C Rank 81 of 200 in Information Technology

Growth C 125 of 200
Valuation D 145 of 200
Quality A 23 of 200
Revisions C 87 of 200
Momentum C 92 of 200

Wall Street consensus Buy (2.32)Average target 286.95 USD +45.8%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 210.2B
Enterprise value: 206.3B
52-week range: 100.03 – 452.54
3-year range: 51.58 – 452.54
Dividend yield: –
Beta (5 years): –
Shares outstanding: 1,068M
Next earnings: Nov 4, 2026

About the company

Arm Holdings plc is a United Kingdom-based company. The Company is engaged in the design of central processing units (CPUs) and compute platforms for semiconductor chips. It develops and licenses CPU products and related technology. Its cloud and data center solutions include Arm AGI CPU and Arm Neoverse Compute Subsystems. The Arm Agentic Generalized Infrastructure (AGI) CPU is a production-ready system on a chip (SoC) for artificial intelligence (AI) data centers, delivering compute at scale. The Arm Neoverse Compute Subsystems (CSS) are pre-validated, performance-optimized compute platforms designed to accelerate infrastructure silicon development. The Company's primary markets include smartphone applications, processors and other chips used in mobile phones, consumer electronics, networking equipment, cloud and data center servers, automotive applications, Internet of Things (loT) and other embedded computing devices.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	4,920	4,007	3,233	2,679	2,703	–
Revenue growth	22.8%	23.9%	20.7%	−0.9%	33.3%	19.4%
EPS (basic, normalized)	1.77	1.63	1.27	–	–	–
EPS growth	8.6%	28.3%	–	–	–	–
Gross margin	97.5%	97.0%	95.2%	96.0%	95.2%	96.2%
Net margin	18.4%	19.8%	9.5%	19.6%	25.0%	18.4%
ROE	12.0%	13.1%	6.5%	13.8%	–	11.3%

Balance sheet, last quarter
Cash & short-term investments (mil)	3,888
Current ratio	5.25x
Long-term debt (mil)	0
Net debt (mil)	−3,867
Total equity (mil)	8,630
Net debt / equity	−0.45x
Net debt / EBITDA	−1.64x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	4,920	+22.8%	41.9x	2,364	+17.0%	87.3x	1.77	+8.6%	111.2x
2027	6,011	+22.2%	34.3x	2,969	+25.6%	69.5x	2.23	+25.8%	88.4x
2028	8,168	+35.9%	25.3x	4,014	+35.2%	51.4x	3.06	+37.6%	64.3x
2029	10,683	+30.8%	19.3x	5,257	+31.0%	39.2x	4.04	+32.0%	48.7x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	6,011	−0.7%	−0.3%	+1.2%	2.23	0.0%	+1.3%	+4.4%
2028	8,168	−0.8%	+0.9%	+7.0%	3.06	+0.1%	+1.8%	+3.6%
2029	10,683	−1.1%	+0.6%	+8.1%	4.04	0.0%	+3.0%	+13.4%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	928	939	844	983	1,241	1,053	1,135	1,242	1,490	1,289
Sales mean (mil)	876	904	808	947	1,232	1,056	1,062	1,223	1,471	1,262
Surprise	+6.0%	+3.9%	+4.4%	+3.8%	+0.7%	−0.3%	+6.9%	+1.5%	+1.3%	+2.1%
EPS reported	0.36	0.40	0.30	0.39	0.55	0.35	0.39	0.43	0.60	0.45
EPS mean	0.30	0.34	0.26	0.34	0.52	0.35	0.33	0.41	0.58	0.40
Surprise	+18.1%	+16.1%	+17.2%	+14.7%	+4.8%	−0.8%	+16.8%	+5.6%	+3.1%	+11.9%

Peer comparison Semiconductors & Semiconductor Equipment

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
ARM ARM Holdings PLC	210.2B	−1.64x	18.4%	24.35x	88.4x	64.3x	69.5x	51.4x
2330 Taiwan Semiconductor Manufacturing Company Limited	1.85T	−1.13x	45.1%	8.63x	21.1x	15.7x	13.9x	10.2x
NVDA NVIDIA Corporation	4.87T	−0.47x	55.6%	21.31x	21.7x	12.8x	17.5x	10.4x
AVGO Broadcom Inc	1.54T	0.82x	36.2%	15.43x	27.9x	16.8x	21.7x	13.3x
MU Micron Technology, Inc.	943.1B	−0.35x	63.8%	6.81x	4.8x	4.0x	3.7x	3.1x
AMD Advanced Micro Devices, Inc.	762.1B	−1.16x	12.3%	11.33x	61.0x	29.1x	46.2x	22.0x
Mean		−0.65x	38.6%	14.65x	37.5x	23.8x	28.7x	18.4x
Median		−0.80x	40.6%	13.38x	24.8x	16.2x	19.6x	11.9x

Technical analysis

1M−36.0%
3M−17.9%
1Y+15.9%
3Y+272.6%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, ARM Holdings PLC, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	4,920	4,007	3,233	2,679	2,703	2,027
Cost of revenue	121	121	154	106	131	145
Gross profit	4,799	3,886	3,079	2,573	2,572	1,882
Selling, general & administrative expenses	1,097	963	960	726	858	781
Research & development	2,697	2,007	1,922	1,080	945	768
Depreciation/amortization	97.0	85.0	80.0	89.0	89.0	91.0
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	8.0	0	6.0	7.0	47.0	3.0
Other operating expenses	0	0	0	0	0	0
Operating income	900	831	111	671	633	239
Net interest income (expense)	125	−121	90.0	−3.0	143	478
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	132	10.0	11.0	3.0	10.0	−20.0
Net income before taxes	1,157	720	212	671	786	697
Provision for taxes	253	−72.0	−94.0	147	110	153
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	904	792	306	524	676	544
Extraordinary items	–	–	0	0	−127	−156
Net income	904	792	306	524	549	388
EBIT, normalized	908	831	117	678	680	242
EBITDA, normalized	1,157	1,014	279	848	865	443
Basic EPS, normalized	1.77	1.63	1.27	–	–	–

Balance sheet in millions of USD, fiscal years

Balance sheet, ARM Holdings PLC, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	3,601	2,825	2,923	2,215	1,635	–
Receivables	2,346	1,795	1,117	1,153	1,290	–
Total inventory	–	–	–	–	–	–
Prepaid expenses	289	210	157	169	167	–
Other current assets	0	0	0	0	0	–
Total current assets	6,236	4,830	4,197	3,537	3,092	–
Property, plant & equipment	1,220	714	420	391	417	–
Goodwill	1,623	1,620	1,625	1,620	1,636	–
Intangibles	230	151	152	138	205	–
Long-term investments	387	565	741	723	736	–
Note receivable	320	380	272	147	129	–
Other long-term assets	687	672	520	310	295	–
Total assets	10,703	8,932	7,927	6,866	6,510	–
Liabilities
Accounts payable	80.0	63.0	19.0	65.0	57.0	–
Payable/accrued	–	–	–	–	–	–
Accrued expenses	457	469	325	717	771	–
Short-term debt	0	0	0	0	0	–
Current portion of long-term debt	25.0	10.0	5.0	–	–	–
Other current liabilities	478	387	1,156	581	567	–
Total current liabilities	1,040	929	1,505	1,363	1,395	–
Long-term debt	0	0	0	0	0	–
Minority interest	–	–	–	–	–	–
Other liabilities	1,377	1,164	1,127	1,452	1,567	–
Total liabilities	2,417	2,093	2,632	2,815	2,962	–
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	2.0	2.0	2.0	2.0	2.0	–
Additional paid-in capital	3,467	2,922	2,171	1,216	1,214	–
Retained earnings (accumulated deficit)	4,447	3,543	2,751	2,457	1,933	–
Treasury stock	–	–	–	–	–	–
Other equity	370	372	371	376	399	–
Total equity	8,286	6,839	5,295	4,051	3,548	–
Total liabilities & shareholders' equity	10,703	8,932	7,927	6,866	6,510	–

Cash flow statement in millions of USD, fiscal years

Cash flow statement, ARM Holdings PLC, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	904	792	306	524	549	388
Depreciation, depletion & amortization	249	183	162	170	185	201
Deferred taxes	15.0	−218	−273	−34.0	−76.0	−33.0
Non-cash items	958	1,105	1,090	152	−12.0	−333
Changes in working capital	−602	−1,465	−195	−73.0	−188	1,010
Cash from operations	1,524	397	1,090	739	458	1,233
Investing activities
Capital expenditures	−575	−239	−143	−93.0	−75.0	−165
Other investing cash flows	250	204	−373	−45.0	−544	−175
Cash from investing	−325	−35.0	−516	−138	−619	−340
Financing activities
Financing cash flow items	−622	−202	−208	−42.0	−82.0	−789
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	74.0	0	0	0	50.0	0
Cash from financing	−548	−202	−208	−42.0	−32.0	−789
Foreign exchange effects	15.0	2.0	3.0	−9.0	−17.0	1.0
Net change in cash	666	162	369	550	−210	105
Free cash flow	949	158	947	646	383	1,068

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.