Arm Holdings plc
Rank #108HypergrowthARM · Nasdaq · Technology
Arm Holdings plc (ARM) — Rank #108 by gross profitability (GP/assets 0.45) · ROE 10.9% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · CIK 0001973239 · all metrics point-in-time as of the filing date.
About
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services.
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The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. It provides its products and services in the United States, China, Japan, Taiwan, Korea, and internationally.
The company was founded in 1990 and is based in Cambridge, United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.
- Industry
- Semiconductors
- Sector
- Technology
- State
- X0
- Filer Category
- Large accelerated filer
- Fiscal Year End
- March 31
- Website
- arm.com
Price History
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
$261.11B
P/E (annual)
287.6
P/S (annual)
53.1
P/B
31.5
P/OCF (annual)
171.3
Shareholder Yield
-0.5%
Employees
9,584
Industry
Semiconductors
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
44.4%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 0.5% — per-share value needs a total required return of 44.8% once share-count change is priced in.
vs. own 6-year median revenue growth: 20.7%
priced above its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
38.1%
r = 10% (base)
44.4%
r = 12%
49.8%
Net debt / market cap: -1.5%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.45
Primary signal (Novy-Marx).
2nd of 17 SIC 3674 peers
Return on equity
10.9%
Gross margin
97.5%
1st of 17 SIC 3674 peers
Revenue growth (YoY)
22.8%
RPO growth (YoY)
-6.9%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
22.5%
Revenue CAGR (5Y)
—
Earnings CAGR (3Y)
19.9%
FCF CAGR (3Y)
—
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.29
7th of 16 SIC 3674 peers (best = lowest)
Current ratio
6.00×
4th of 17 SIC 3674 peers
Quick ratio
4.71×
Net cash
$3.99B
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$979.00M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.08
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
21.4%
Stock-based comp intensity.
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).