Arm Holdings plcARM
NasdaqGS•Technology•Semiconductors
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The company is involved in the licensing, marketing, research, and development of microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. It also offers arm central processing units, accelerators, system IP products, and compute platform products, as well as development tools and software. The company's products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. It operates in the United States, the People's Republic of China, Taiwan, the Republic of 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 SoftBank Group Corp.
Arm Holdings plc (ARM) reported trailing twelve months revenue of $4.92B as of March 2026, a 22.8% increase year-over-year. Quarterly revenue reached $1.49B, reflecting continued top-line momentum.
Arm Holdings plc generated $904.00M in TTM net income, with quarterly EBITDA of $511.00M. The operating margin contracted from 33.0% to 29.5%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (29.5%) and net margin (21.0%) indicates moderate non-operating costs. Net margin has improved from 16.9% a year ago, signaling stronger bottom-line efficiency.
ARM trades at a P/E of 161.8x (a premium multiple) and a P/S of 29.7x. The price-to-book ratio of 17.7x indicates a significant premium over book value.
The company generated $186.00M in free cash flow over the trailing twelve months, a 1.1% increase year-over-year, indicating cash generation ability. The balance sheet shows $10.70B in total assets with no in long-term debt against $8.29B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~18.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~10.6% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~40.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 10.8% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation