ARM
ARM HOLDINGS PLC /UK
Technology • CIK: 0001973239
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Market Cap
$115.68B
P/E (TTM)
147.7x
Rev Growth (TTM)
+26.4%
Net Margin (TTM)
17.1%
FCF Yield (TTM)
0.8%
FCF Margin (TTM)
20.5%
What Changed
6-K FY 2026 (filed 2026-03-24) vs 6-K Q2 FY2026 (filed 2025-09-30)
External Customer Revenue Direction+9% YoY (three months ended Sep 30, 2025)→-2% YoY for six months ended Sep 30, 2025 (net growth...
Related Party Revenue Share17% of total revenue (FY2025), declining trend...→+137% YoY in H1 FY2026; related parties drove 100% of...
Artisan Foundation IP Business Saleno disposition activity→$127M proceeds from sale of Artisan Foundation IP...
Cash-to-Equity Compensation Conversioncash bonus compensation structure→$172M cash bonuses replaced with equity compensation;...
Revenue Quality Growth Outlookuncertain→stable
External customer revenue in H2 FY2026 6-K: watch for recovery above -2%...·Arm China related party revenue as % of FY2026 annual total (20-F): watch for...·SBC/Revenue ratio in FY2026 20-F following the $172M cash→equity shift: watch...
Filing Intelligence
6.0/10
6-K filed Mar 24, 2026 • FY 2026
Executive Summary
The company maintains a confident liquidity position, believing current cash and investments are adequate for the next 12 months and beyond, despite acknowledging the potential need for future...
Key Concerns
- ●Reliance on Related Parties and Key Customers (high)
- ●Technological Innovation and Intellectual Property Protection (high)
Key Strengths
- ●Revenue growth was driven by a mix of factors including higher royalty rates per chip and favorable timing of large license agreements,...
- ●Operating cash flow significantly improved, largely due to favorable working capital movements and increased non-cash expenses, indicating...
- ●Investing activities increased, primarily driven by higher purchases of short-term investments and property/equipment, indicating...
LATEST EARNINGS
No earnings in last 90 days
Check back after next 8-K filing
Cash Flow Health
Free Cash Flow6/8 positive
TTM$959M
Q3 '26
$181M-58%
Q2 '26
$427M+150%
FCF Margin
TTM20.5%
Q3 '2614.6%-61%
Sector: 9.1%Top 25%
OCF Margin32.6%
OCF/NI1.90x
CapEx Coverage2.8x
FCF Yield0.8%
FCF Growth (2Y)–
Cash Conversion Cycle
88 days
DSO: 88+DIO: 0−DPO: 0
Capital Allocation & Returns
Total Shareholder Yield
TTM0.0%
Div Yield0.0%
Insufficient data
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$959.0M
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
9.9%
Stable
+0.0% YoY+4.0%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
15.0%
8Q: 12.9%
Asset Turnover
0.50x
8Q: 0.48x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 7.5% ≈ 9.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
9.45x
8Q:12.56x
-956.9%
Invested Cap Turn
0.69x
8Q:0.68x
-8.6%
CapEx Intensity
8.0%
8Q:4.6%
CapEx/Depreciation
2.40x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $4.7B | $1.2B↑9.4% | $1.1B↑7.8% | $1.1B↓15.1% | $1.2B↑26.2% | $983.0M↑16.5% | $844.0M↓10.1% | $939.0M↑1.2% | $928.0M |
Operating Income | $872.0M | $185.0M↑13.5% | $163.0M↑43.0% | $114.0M↓72.2% | $410.0M↑134.3% | $175.0M↑173.4% | $64.0M↓64.8% | $182.0M↑727.3% | $22.0M |
Net Income | $801.0M | $223.0M↓6.3% | $238.0M↑83.1% | $130.0M↓38.1% | $210.0M↓16.7% | $252.0M↑135.5% | $107.0M↓52.0% | $223.0M↓0.4% | $224.0M |
Operating Cash Flow | $1.5B | $365.0M↓35.6% | $567.0M↑70.8% | $332.0M↑28.7% | $258.0M↑277.9% | $-145.0M↓2316.7% | $-6.0M↓102.1% | $290.0M↓56.5% | $667.0M |
Free Cash Flow | $959.0M | $181.0M↓57.6% | $427.0M↑149.7% | $171.0M↓5.0% | $180.0M↑186.5% | $-208.0M↓215.2% | $-66.0M↓126.2% | $252.0M↓61.1% | $648.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
147.7x
Volatile
8Q: 605.6x-10101%
High PEG ratio (5.6x) suggests expensive for growth
Valuation Lenses
Earnings
147.7x
vs – sector
Cash Flow
117.5x
EV/FCF vs –
Growth-Adj
5.6xPEG
Expensive for growth
Quality-Adj
15.0P/E per %ROIC
ROIC: 9.9%
Shareholder Returns
Dividend
–
Buyback
–
Total Yield
–
Market Cap$115.68B
EV$112.66B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
75/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
11.3%
8Q:–
Return on Invested Capital (ROIC)Top 25%
9.9%
8Q:–
+4.0%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 15.0%
Asset Turnover: 0.50x
Earnings Quality
Cash Conversion
1.90x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin97.5%
Capital Efficiency
Invested Capital Turnover0.69x
Working Capital
Cash Conversion Cycle88 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
70/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
26.4%
OpInc Growth YoY
5.7%
EPS Growth YoY
-1.3%
FCF 3Y CAGR
N/A
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
97.5%
Operating
18.7%
Top 25% in sector
Net
17.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+3.4 pts
FCF: 20.5% | Net: 17.1%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $3.54B
Interest Coverage
–
+Net cash position: $3.54B
Balance sheet risk & solvency analysis