Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores. It also has high market share in other battery-powered devices like wearables, tablets, and sensors.
It is a $284B technology company. Revenue grew 22.8% over the last year, it keeps 18¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 281.6× earnings — around the middle of its own history.
- Website
- arm.com
- Employees
- 9 584
- Sector
- Technology
- Founded
- 1990
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong growth, health, quality and moat; Valuation lags behind.
Valuation17
- P/E vs own history59th pct · 12/25
- FCF yield0.5% · 5/25
- P/S57.0x · 0/25
- EV/EBITDA255.0x · 0/25
Growth85
- Revenue CAGR16.2% · 20/25
- Net income CAGR13.3% · 20/25
- EPS CAGR ~5Y12.1% · 20/25
- Fwd implied growth121.4% · 25/25
Profitability72
- ROIC17.3% · 20/25
- ROE13.0% · 12/25
- Net margin18.4% · 20/25
- Operating margin17.0% · 20/25
Health93
- Altman Z68.34 · 25/25
- Current ratio5.25 · 25/25
- Interest coverage7.0x · 18/25
- Net cash / debtNet cash · 25/25
Quality84
- Piotroski F7/9 · 22/25
- Beneish M-2.92 · 25/25
- FCF conversion167% · 25/25
- Margin stabilityσ 8.7% · 12/25
Moat88
- ROIC >12% years4/5 yrs · 20/25
- Median gross margin96.0% · 25/25
- FCF-positive years5/5 yrs · 25/25
- Worst-year net marginworst 9.5% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2026FinancialBest year on record$904M net income
- 2022AcquisitionThe acquisition was initially scheduled to conclude before the end of 2022 per the contract
- FY2022FinancialProfitable every year on record5 consecutive profitable years in our data
- FY2022FinancialRevenue already above $1B$2.70B in first reported year
- FY2022FinancialPositive free cash flow every year since5-year streak
- 2020IPOA planned takeover deal by Nvidia, announced in 2020, collapsed in February 2022
- 2020AcquisitionAmerican technology company Nvidia announced plans on 13 September 2020 to acquire ARM from SoftBank, pending…
- 1998MilestoneThe company changed its name from Advanced RISC Machines Ltd to ARM Ltd
- 1990FoundedHowever, when the company was incorporated in 1990, what 'ARM' stood for changed to "Advanced RISC Machines"
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (97.5%)
- Revenue growing 22.8% year over year
- Strong cash conversion — FCF is 30.6% of revenue
- Net cash position after subtracting debt from cash
- Interest covered 7.0× by operating earnings
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+22.8% YoY
- Profitable — makes more than it spends$904M FY2026
- Profit growing — earnings are higher than last year+18.3% YoY
- Generates cash — cash left after running and investing$1.51B FY2026
- Debt under control — could handle its obligationsmore cash than debt
- Established company — not a micro-cap — lower blow-up risk$284B market cap
- Not printing shares — share count not ballooning — you keep your slice+4.2% shares over ~5y
- Proven track record — years of profitability behind it5/5 profitable years
- Financially stable — balance sheet not near distressAltman Z 68.3 — safe
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 281.6
Peer comparisonArm Holdings plc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| ARM this company | $284.4B | 281.6 | +22.8% | 18.4% | Strong |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: ARM vs NVDA · ARM vs AAPL · ARM vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2022–FY2026. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/ARM
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of ARM on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $266.28 · market cap $284B.