Arm Holdings plc American Depositary Shares
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Range $210 – $641
Price Chart
About the company
Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services.
- CEO
- Rene Anthony Andrada Haas
- IPO
- 2023
- Employees
- 9,584
- HQ
- Cambridge, CA, GB
AI snapshot
Six angles, distilled from the data.
ARM remains in a long-term uptrend but has spent months below its 200-day average, signaling a damaged intermediate trend rather than a clean breakout. The stock is still far from its 52-week high and well above the low, so the setup is a recovery attempt inside a volatile secular growth name.
Street sentiment stays constructive, with a Buy consensus and a $366.75 average target versus a $254.39 share price. Recent calls are mixed but still positive overall: New Street upgraded to Buy, while several firms trimmed targets, and Raymond James lifted its target to $641, showing wide dispersion in expectations.
ARM has a solid recent beat pattern, topping EPS estimates in 6 of the last 8 quarters, including an 11.1% beat in the latest report. Next-year EPS estimates point to $2.1392 from a $1.02 TTM base, so shareholders should watch whether revenue growth and margin leverage keep translating into higher earnings.
The pattern is net selling, led by repeated discretionary sales from senior officers, including the CFO, CAO, Chief Commercial Officer, Chief People Officer, and Chief Legal Officer. A director gift and several equity-related or exempt transactions add noise, but the dominant signal is insider distribution rather than accumulation.
Profitability is strong, with a 97.5% gross margin and 20.25% net margin, while revenue grew 22.4% year over year and earnings grew 108.3%. The balance sheet is a clear strength too, with $3.601 billion in cash against $457 million of debt and $2.069 billion in free cash flow.
ARM’s edge is its IP model: very high gross margins and asset-light cash generation versus chipmakers that carry heavier manufacturing costs. The valuation remains rich at 143.72x earnings, so the setup favors investors who are paying for durability and long runway rather than near-term cheapness.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $279.31B
- P/E
- 269.62
- Fwd P/E
- 117.29
- PEG
- 5.74
- P/S
- 54.17
- P/B
- 32.30
- EV/EBITDA
- 201.56
- Div Yield
- 0.00%
- Gross Margin
- 95.35%
- Op Margin
- 17.30%
- Net Margin
- 20.25%
- ROE
- 13.00%
- ROIC
- 7.33%
Latest fiscal year · YoY change
- Revenue
- $4.92B+22.8%
- Gross Profit
- $4.55B+19.7%
- Op Income
- $908.00M
- Net Income
- $904.00M+14.1%
- EPS
- $0.85+13.3%
- OCF Growth
- +283.9%
- FCF Growth
- +450.0%
- 52W High
- $452.70
- 52W Low
- $100.02
- 50D MA
- $273.58
- 200D MA
- $201.77
- Beta
- 3.89
- RSI (14)
- 52
- Avg Volume
- 6.76M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Arm posted a record Q1 with 22% revenue growth, strong AI-driven royalty momentum, and rising confidence in its new Arm AGI CPU opportunity.· July 29, 2026
- Revenue hit a Q1 record of $1.29 billion, up 22% year over year; non-GAAP EPS was $0.45, up 29%.
- Royalty revenue rose 22% to $715 million and licensing revenue rose 23% to $574 million, both Q1 records.
- Data center royalties more than doubled year over year again, led by cloud AI demand and broader Neoverse adoption.
- Management said AGI CPU demand is now above $2 billion versus the initial $1 billion opportunity, and supply confidence has improved.
- Q2 guidance implies continued growth, but royalty outlook is tempered by smartphone weakness and memory-related pressure.
Arm reported Q1 fiscal 2027 revenue of $1.29 billion, up 22% year over year. Royalty revenue was $715 million, up 22%, and licensing revenue was $574 million, up 23%; non-GAAP EPS was $0.45, up 29%. Non-GAAP operating expense was $733 million, up 18%, non-GAAP operating income was $531 million, and non-GAAP operating margin was about 41%, up 200 basis points year over year. Free cash flow was $665 million for the quarter and $1.4 billion over the trailing 12 months. For Q2, Arm guided revenue to $1.38 billion plus or minus $50 million, non-GAAP EPS to $0.47 plus or minus $0.04, non-GAAP operating expense to about $780 million, license and other revenue up about 30% year over year, and royalty revenue up in the low teens year over year.
Rene Haas framed the quarter as evidence that Arm is at the center of the AI compute shift across cloud, edge, PCs and physical AI. He emphasized that Neoverse adoption is accelerating, data center royalties are more than doubling again, and customers are increasingly standardizing on Arm across multiple AI infrastructure designs. He also sounded notably more optimistic on the new Arm AGI CPU, saying demand has grown beyond the original $1 billion opportunity and that supply confidence has improved over the past 90 days.
Jason Child highlighted that Q1 revenue, royalty revenue, and license revenue were all record first-quarter figures, with the main royalty driver being cloud AI. He said SoftBank contributed $193 million of the $574 million in license revenue and that the quarterly run rate for the rest of the year should be around $200 million. He also noted non-GAAP OpEx of $733 million came in about $27 million below guidance due to timing, while free cash flow reached $665 million, giving Arm flexibility to keep investing; for Q2 he guided to $1.38 billion in revenue, $780 million in OpEx, and $0.47 of EPS.
Analysts focused heavily on the AGI CPU opportunity, asking what improved the supply outlook and whether Arm could go beyond the original $1 billion target. Management said the improvement was “all of the above,” citing better access across wafers, substrates, test capacity and memory, and noted the demand picture is now north of $2 billion. Questions also probed smartphone weakness, where management said higher memory costs are pressuring the market and may drag royalty growth toward the high teens rather than 20%, though cloud AI strength is helping offset that.
The call showed strong operating momentum in Arm’s core business, with record Q1 revenue, royalty growth, and license growth all beating expectations. Management repeatedly pointed to accelerating AI adoption in data centers, plus a larger-than-expected AGI CPU demand pipeline, as evidence that Arm’s role in AI compute is expanding.
Management acknowledged that smartphone royalties are facing incremental weakness from memory-related cost inflation and broader handset softness, which could pull royalty growth below prior expectations. The AGI CPU opportunity is still constrained by supply chain tightness, and management said it will not have full visibility on the revenue and margin profile until later in the year.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 99.5%
- Shares Outstanding
- 1.07B
- Float Shares
- 1.06B
of shares held by institutions
823 13F filers
Buy/sell ratio 0.50. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for ARM, newest first.
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Invesco Ltd. | 12.82M | ▲ 9.89M |
| Dz Bank AG Deutsche Zentral Genossenschafts Bank, Frankfurt Am Main | 6.50M | ▼ 2.87M |
| Capital World Investors | 4.33M | ▲ 4.33M |
| Arrowstreet Capital, Limited Partnership | 4.09M | ▲ 3.15M |
| Fmr LLC | 4.06M | ▲ 1.61M |
| Goldman Sachs Group Inc | 2.92M | ▲ 1.29M |
| Van Eck Associates Corp | 2.60M | ▲ 387.71K |
| Capital Research Global Investors | 2.40M | ▼ 1.82M |
| Morgan Stanley | 2.16M | ▼ 2.31M |
| Capital International Investors | 2.05M | ▲ 884.71K |
| Blackrock, Inc. | 2.04M | ▲ 793.29K |
| Franklin Resources Inc | 2.02M | ▲ 472.95K |
Held by 291 ETFs
Biggest fund positions in ARM by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 27, 26 | Child Jason | sell | 10,400 |
| Aug 17, 26 | Bartels Laura Kathleen | other | 862 |
| Aug 17, 26 | Bartels Laura Kathleen | other | 819 |
| Aug 17, 26 | Bartels Laura Kathleen | other | 819 |
| Aug 17, 26 | Bartels Laura Kathleen | other | 862 |
| Aug 17, 26 | Bartels Laura Kathleen | other | 856 |
| Aug 7, 26 | Sine Jeffrey | other | 9,572 |
| Jun 2, 26 | Bartels Laura Kathleen | sell | 11,306 |
| May 28, 26 | Abbey William | sell | 4,200 |
| May 22, 26 | Abbey William | sell | 2,300 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our ARM coverage
Recent articles, reports, and earnings notes.

Arm Holdings (ARM): AI Royalty Growth vs. Rich Valuation
Arm is expanding beyond mobile into cloud AI, custom silicon, and automotive, with revenue up 22% and data center royalties more than doubling. The business is strong, but the stock’s premium valuation keeps the rating at Hold.

Arm Holdings plc American Depositary Shares (ARM) rises on vote
Arm Holdings plc American Depositary Shares (ARM) rises as traders position ahead of a September 9 shareholder vote on CEO Rene Haas’s compensation. Options activity and ongoing AI chip momentum add to the move, while the stock’s premium valuation keeps volatility elevated for investors.

Arm Holdings plc American Depositary Shares (ARM) drops on AI fade
Arm Holdings plc American Depositary Shares (ARM) drops after a Nvidia-fueled chip rally reversed, pulling the stock lower despite strong royalty growth and solid earnings. Low relative volume suggests the move was more a momentum unwind than a fundamental setback, but the stock’s rich valuation leaves it highly sensitive to sentiment shifts.
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Arm's Biggest Growth Driver May Not Be Smartphones Anymore
247wallst.com · Sep 8
AI will help find cure for cancer ‘within our lifetimes', says Arm Holdings chief
theguardian.com · Sep 8
Arm Expands Into AI Accelerators With Samsung — But It’s Not the Data Center Goldmine Investors Hope For
247wallst.com · Sep 7
Can ARM's AGI CPU Push Unlock $15B in Revenues by FY'31?
zacks.com · Sep 3
ARM vs. Sandisk: Comparing Steady Historical Revenue Generation Against Rapid Sequential Revenue Expansion
fool.com · Sep 1
Why Arm Holdings Stock Fell on Tuesday
fool.com · Sep 1
ARM vs. NVDA: Which AI Chip Designer is Worth Investing in?
zacks.com · Aug 31
Wall Street May Be Sleeping on This Massive AI CPU Opportunity
247wallst.com · Aug 31
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
AI analysis · Last refreshed September 4, 2026 · Live quote · Not investment advice