# Arm Holdings plc American Depositary Shares (ARM) — Stock CV

Arm Holdings plc 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.

> 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.

## Identity

- **Ticker**: ARM
- **Sector**: Technology
- **Employees**: 9 584
- **Website**: https://www.arm.com
- **Market cap**: $284B
- **Last price**: $266.28
- **Financial profile**: Strong

## Vitals (FY2026)

- **Revenue**: $4.92B
- **Net income**: $904M
- **Free cash flow**: $1.51B
- **Net cash**: $3.40B
- **P/E**: 281.6
- **Revenue growth (YoY)**: 22.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 17 |
| Growth | 85 |
| Profitability | 72 |
| Health | 93 |
| Quality | 84 |
| Moat | 88 |

## Qualifications (beginner checklist) — 9 of 10 passed

- [x] Revenue growing — +22.8% YoY
- [x] Profitable — $904M FY2026
- [x] Profit growing — +18.3% YoY
- [x] Generates cash — $1.51B FY2026
- [x] Debt under control — more cash than debt
- [x] Established company — $284B market cap
- [x] Not printing shares — +4.2% shares over ~5y
- [x] Proven track record — 5/5 profitable years
- [x] Financially stable — Altman Z 68.3 — safe
- [ ] Valuation not extreme — P/E 281.6

## Experience (career milestones)

- **FY2026** — Best year on record: $904M net income
- **2022** — The acquisition was initially scheduled to conclude before the end of 2022 per the contract
- **FY2022** — Profitable every year on record: 5 consecutive profitable years in our data
- **FY2022** — Revenue already above $1B: $2.70B in first reported year
- **FY2022** — Positive free cash flow every year since: 5-year streak
- **2020** — A planned takeover deal by Nvidia, announced in 2020, collapsed in February 2022
- **2020** — American technology company Nvidia announced plans on 13 September 2020 to acquire ARM from SoftBank, pending…
- **1998** — The company changed its name from Advanced RISC Machines Ltd to ARM Ltd
- **1990** — However, when the company was incorporated in 1990, what 'ARM' stood for changed to "Advanced RISC Machines"

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $2.70B | $549M | $675M |
| FY2023 | $2.68B | $524M | $998M |
| FY2024 | $3.23B | $306M | $178M |
| FY2025 | $4.01B | $792M | $979M |
| FY2026 | $4.92B | $904M | $1.51B |

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Source: https://stockcv.com/ARM — derived from company filings; may be delayed or incomplete. Information, not investment advice.