ARM
ARM HOLDINGS PLC /UK
Next earnings Jul 27, 2026 · consensus $0.42 EPS, $1.27B rev
$315.28
▼ -11.08%$315.28▲ +90.55%
over 1Y
L $104.55H $439.46
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today-11.1%
1W-9.3%
1M-21.7%
3M+111.4%
YTD+174.8%
1Y+90.5%
Sell
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 44 analysts
Buy
Superb IP royalty machine, but 517x earnings for ~14% EPS growth is indefensible — the quality is real, the price is the risk.
P/E ratio 517.0 · FY2026
The read
Weak on both the fundamentals and the price — little to like at the current level.
ARM is one of the highest-quality business models in semiconductors: a near-pure IP licensing and royalty engine with a 97.5% gross margin, revenue of $4.92B growing 22.8% and accelerating cleanly off the FY2023 base ($2.68B → $3.23B → $4.01B → $4.92B), and a fortress balance sheet (liabilities/equity just 0.29x, $2.75B cash, current assets $6.24B against $1.04B current liabilities). Operating cash flow inflected hard to $1.52B (+283.9%), and dilution is negligible (shares +0.7%). On business quality alone this is a buy-and-hold-forever asset.
But the numbers also expose the catch the bulls gloss over. Despite the 97.5% gross margin, operating margin is only 18.3% because R&D ballooned to $2.78B (+34%, roughly 56% of revenue), and operating income grew just 8.3% — far below revenue's 22.8%. That is negative operating leverage this year. EPS (+13.3%) and net income (+14.1%) both lag the top line, and ROE is a modest 10.9% on the large equity base. The celebrated 'operating leverage' story is not yet visible in this filing's actuals.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 19, 2026, 1:57 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | $2.70B | $2.68B | $3.23B | $4.01B | $4.92B |
| Gross profit | $2.57B | $2.57B | $3.08B | $3.89B | $4.80B |
| Operating income | $633M | $671M | $111M | $831M | $900M |
| Net income | $549M | $524M | $306M | $792M | $904M |
| Diluted EPS | $0.54 | $0.51 | $0.29 | $0.75 | $0.85 |
| Net margin | 20.3% | 19.6% | 9.5% | 19.8% | 18.4% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$334B
EV / EBITDA290.7
EV / Sales67.9
EV / FCF341.2
P / FCF344.0
PEG (trailing)26.23
Earnings yield0.3%
FCF yield0.3%
Quality & risk
ROIC (est.)8.6%
Free cash flow$979M
Total debt—
Net cash$2.75B
Altman Z-Score85.50 safe
Piotroski F-Score6/8
Capital returns
Buyback yield—
Dividend yield (est.)—
Shareholder yield—
Shares Δ YoY+0.7%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Recent filings
all on EDGAR ↗4Period ending 2026-06-022026-06-04open ↗4Period ending 2026-06-012026-06-03open ↗4Period ending 2026-05-282026-06-01open ↗4Period ending 2026-05-222026-05-26open ↗SDFiling2026-05-26open ↗IRANNOTICEFiling2026-05-26open ↗20-FPeriod ending 2026-03-312026-05-26open ↗4Period ending 2026-05-212026-05-22open ↗4Period ending 2026-05-212026-05-22open ↗144Filing2026-05-21open ↗4Period ending 2026-05-192026-05-21open ↗4Period ending 2026-05-192026-05-21open ↗
Frequently asked
- Is ARM HOLDINGS PLC /UK (ARM) a buy?
- ARM currently carries a Sell rating with 3/5 conviction, derived from its latest SEC filings. Superb IP royalty machine, but 517x earnings for ~14% EPS growth is indefensible — the quality is real, the price is the risk.
- What is ARM's fair value?
- A Modified-Graham model based on ARM's SEC fundamentals estimates a fair value of about $32.30. It is an estimate from reported earnings, not a price target.
- Is ARM overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, ARM currently appears overvalued relative to its SEC-grounded earnings power.
- What is ARM HOLDINGS PLC /UK's quality score?
- ARM scores 65.46125732829091/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001973239, latest 4 filed 2026-06-04) · EODHD · Proprietary analysis · as of 6/19/2026, 5:57:28 PM.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.