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ARM

Arm Holdings plc American Depositary Shares

ARM

Arm Holdings plc American Depositary Shares • NASDAQ
$135.11 ▲ 1.89% (+2.50)
Market Cap $142.68 B
52w High $183.16
52w Low $80.00
Dividend Yield 0%
P/E 173.22
Volume 1.55M
Outstanding Shares 1.06B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $1.135B ▲ $943M ▲ $238M ▲ 20.969% ▲ $0.22 ▲ $357M ▲
Q1-2026 $1.053B ▼ $886M ▲ $130M ▼ 12.346% ▼ $0.12 ▼ $206M ▲
Q4-2025 $1.241B ▲ $778.5M ▲ $210M ▼ 16.922% ▼ $0.2 ▼ $193M ▼
Q3-2025 $983M ▲ $756.5M ▲ $252M ▲ 25.636% ▲ $0.24 ▲ $315M ▲
Q2-2025 $844M $726M $107M 12.678% $0.1 $108M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $3.258B ▲ $9.71B ▲ $2.303B ▼ $7.407B ▲
Q1-2026 $2.906B ▲ $9.395B ▲ $2.388B ▲ $7.007B ▲
Q4-2025 $2.825B ▲ $8.932B ▲ $2.093B ▲ $6.839B ▲
Q3-2025 $2.671B ▲ $8.496B ▲ $2.077B ▲ $6.419B ▲
Q2-2025 $2.358B $8.086B $2.074B $6.012B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $238M ▲ $567M ▲ $196M ▲ $-190M ▼ $562M ▲ $429M ▲
Q1-2026 $130M ▼ $332M ▲ $-372M ▼ $-123M ▼ $-129M ▼ $171M ▼
Q4-2025 $210M ▼ $258M ▼ $-188M ▼ $-27M ▼ $49M ▼ $184M ▼
Q3-2025 $252M ▲ $423M ▲ $152M ▲ $-26M ▲ $538M ▲ $360M ▲
Q2-2025 $107M $6M $75M $-53M $33M $-54M

Five-Year Company Overview

Income Statement

Income Statement Arm’s income statement shows a business that is growing and highly profitable on each dollar of sales. Revenue has risen steadily over the last several years, with particularly strong acceleration more recently. Gross profitability is very high, reflecting the attractive economics of licensing intellectual property rather than manufacturing chips. Operating profit dipped during one year as costs rose—likely from higher investment in people, products, and going public—but has since recovered to healthier levels. Net income and earnings per share have generally trended upward, though not in a perfectly straight line, which is normal for a company investing heavily in growth. Overall, the picture is one of strong growth, robust profitability, and some earnings variability tied to investment cycles.

Balance Sheet

Balance Sheet Arm’s balance sheet looks solid and conservative. Total assets and shareholders’ equity have increased over time, indicating that the company is building its asset base and retaining value in the business. Cash levels are substantial and have grown, providing a meaningful cushion for investment, research, and potential downturns. Debt is relatively low compared with the size of the company, which reduces financial risk and interest burdens. This combination of healthy equity, strong cash, and modest leverage supports financial flexibility and resilience as Arm pursues new opportunities in AI, data centers, and automotive.

Cash Flow

Cash Flow Arm consistently generates cash from its operations, but the amounts have moved up and down from year to year. Some years show very strong operating cash flow, while others are lighter, likely reflecting shifts in working capital, deal timing, and investment in growth. Free cash flow has remained positive across the period, which is encouraging, but it is also somewhat volatile. Capital spending needs are relatively modest for a company in semiconductors because Arm focuses on design and licensing rather than running its own factories. Overall, the company appears to fund its growth mostly from internal cash generation, but investors should recognize that cash flow can be choppier than reported earnings.

Competitive Edge

Competitive Edge Arm holds a powerful position at the center of the semiconductor ecosystem. Its designs power the vast majority of smartphones and are increasingly used in cloud data centers, networking equipment, and emerging AI workloads. The company benefits from a strong network effect: hardware makers choose Arm because so much software already runs on it, and software developers build for Arm because it is used in so many devices. This creates high switching costs and makes it difficult for alternative architectures to displace Arm. Long-standing relationships with leading technology companies, a large portfolio of patents, and a trusted brand further reinforce its moat. The main strategic risk is that markets like PCs, servers, and AI accelerators are intensely competitive, with powerful rivals pushing their own architectures and ecosystems.

Innovation and R&D

Innovation and R&D Arm’s business is built on research and innovation. Instead of manufacturing chips, it invests heavily in designing new architectures and platforms—Cortex for general compute, Neoverse for data centers, and specialized lines for automotive, industrial, and graphics. The company is pushing deeper into AI, with newer designs aimed at running machine learning directly on devices and in the cloud, and it is expanding its presence in software-defined vehicles and advanced driver-assistance systems. Arm is also exploring moves up the value chain, potentially creating more complete chip solutions, which could unlock more value but also introduce new execution and capital risks. The roadmap in AI, automotive, and data center compute shows a clear intent to stay at the forefront of future workloads, but success will depend on continued technical leadership and tight collaboration with key partners.

Summary

Arm combines high-margin licensing economics with a central role in modern computing, from smartphones to emerging AI and automotive applications. Financially, it shows strong revenue growth, very attractive gross margins, and a generally rising earnings trend, backed by a solid balance sheet with ample cash and limited debt. Cash generation is positive but somewhat uneven, reflecting the realities of IP licensing and growth investment. Competitively, Arm’s ecosystem, software compatibility, and customer lock-in create a durable moat, though it faces aggressive competition from other architectures and custom silicon efforts by major customers. Its future is tightly tied to innovation: success in AI, data center, and automotive designs could significantly extend its reach, but these same areas are technologically demanding and rapidly evolving. Overall, Arm appears to be a financially sound, innovation-driven IP provider with meaningful opportunities and execution risks tied to the next wave of computing workloads.

NEWS

November 5, 2025 · 4:04 PM UTC

Arm Holdings plc Reports Results for the Second Quarter of the Fiscal Year Ending 2026

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October 9, 2025 · 11:54 AM UTC

Angel Oak Mortgage Solutions Expands Non-QM Product Line with Launch of 5-Year and 7-Year ARM Offerings

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October 6, 2025 · 9:00 AM UTC

Arm Announces Earnings Release Date for Second Quarter Fiscal Year Ended 2026

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