Arm Holdings (ARM) reported $4.9B in revenue for fiscal year 2026, up 22.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 5 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Arm’s dominant mechanic is high gross-margin monetization paired with heavy reinvestment, producing cash generation but uneven conversion.
In FY2026, operating cash flow of$1.5B exceeded net income of$904M , reversing FY2025’s weaker conversion; cash generation therefore supported reported earnings rather than merely mirroring them. Free cash flow of$979M after$545M of capital expenditures shows the business can fund substantial reinvestment internally, although cash available after investment is more variable than profit.
The margin shape is unusually asymmetric: gross margin reached
The balance sheet is becoming more liquid relative to obligations: cash reached
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Arm Holdings's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Arm Holdings has an operating margin of 18.3%, meaning the company retains $18 of operating profit per $100 of revenue. This strong profitability earns a score of 73/100, reflecting efficient cost management and pricing power. This is down from 20.7% the prior year.
Arm Holdings's revenue surged 22.8% year-over-year to $4.9B, reflecting rapid business expansion. This strong growth earns a score of 85/100.
Arm Holdings carries a low D/E ratio of 0.29, meaning only $0.29 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 69/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 6.00, Arm Holdings holds $6.00 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 92/100.
Arm Holdings converts 19.9% of revenue into free cash flow ($979.0M). This strong cash generation earns a score of 84/100.
Arm Holdings's ROE of 10.9% shows moderate profitability relative to equity, earning a score of 60/100. This is down from 11.6% the prior year.
Arm Holdings scores 68.37, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($267.8B) relative to total liabilities ($2.4B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Arm Holdings passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Arm Holdings generates $1.69 in operating cash flow ($1.5B OCF vs $904.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Arm Holdings generated $4.9B in revenue in fiscal year 2026. This represents an increase of 22.8% from the prior year.
Arm Holdings's EBITDA was $1.1B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 13.3% from the prior year.
Arm Holdings reported $904.0M in net income in fiscal year 2026. This represents an increase of 14.1% from the prior year.
Arm Holdings earned $0.85 per diluted share (EPS) in fiscal year 2026. This represents an increase of 13.3% from the prior year.
Cash & Balance Sheet
Arm Holdings generated $979.0M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 450.0% from the prior year.
Arm Holdings held $2.8B in cash as of fiscal year 2026; long-term debt is not reported for that period.
Not reported for fiscal year 2026.
Margins & Returns
Arm Holdings's gross margin was 97.5% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 0.6 percentage points from the prior year.
Arm Holdings's operating margin was 18.3% in fiscal year 2026, reflecting core business profitability. This is down 2.4 percentage points from the prior year.
Arm Holdings's net profit margin was 18.4% in fiscal year 2026, showing the share of revenue converted to profit. This is down 1.4 percentage points from the prior year.
Arm Holdings's ROE was 10.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 0.7 percentage points from the prior year.
Capital Allocation
Arm Holdings invested $2.8B in research and development in fiscal year 2026. This represents an increase of 34.0% from the prior year.
Arm Holdings invested $545.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 148.9% from the prior year.
Not reported for fiscal year 2026.
ARM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY26 | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|---|---|
| Revenue | $5.2B | $4.9B+22.8% | $4.0B+23.9% | $3.2B+20.7% | $2.7B-0.9% | $2.7B |
| Cost of Revenue | $127.0M | $121.0M0.0% | $121.0M-21.4% | $154.0M+45.3% | $106.0M-19.1% | $131.0M |
| Gross Profit | $5.0B | $4.8B+23.5% | $3.9B+26.2% | $3.1B+19.7% | $2.6B0.0% | $2.6B |
| R&D Expenses | $3.0B | $2.8B+34.0% | $2.1B+4.6% | $2.0B+74.7% | $1.1B+13.9% | $995.0M |
| SG&A Expenses | $1.2B | $1.1B+13.3% | $984.0M+0.1% | $983.0M+29.0% | $762.0M-15.1% | $897.0M |
| Operating Income | $877.0M | $900.0M+8.3% | $831.0M+648.6% | $111.0M-83.5% | $671.0M+6.0% | $633.0M |
| Income Tax | $220.0M | $253.0M+451.4% | -$72.0M+23.4% | -$94.0M-164.0% | $146.8M+33.8% | $109.7M |
| Net Income | $1.0B | $904.0M+14.1% | $792.0M+158.8% | $306.0M-41.6% | $524.0M-4.6% | $549.0M |
| EPS (Diluted) | — | $0.85+13.3% | $0.75+158.6% | $0.29-43.1% | $0.51-5.6% | $0.54 |
Not reported in any period shown, so not listed: Interest Expense.
TTM is the trailing twelve months, Q2 FY2026 through Q1 FY2027, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
ARM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|---|
| Total Assets | $10.7B+19.8% | $8.9B+12.7% | $7.9B+15.5% | $6.9B | N/A |
| Current Assets | $6.2B+29.1% | $4.8B+15.1% | $4.2B+18.7% | $3.5B | N/A |
| Cash & Equivalents | $2.8B+31.9% | $2.1B+8.4% | $1.9B+23.7% | $1.6B+54.8% | $1.0B |
| Accounts Receivable | $1.3B+17.4% | $1.1B+41.7% | $781.0M-21.8% | $999.0M | N/A |
| Goodwill | $1.6B+0.2% | $1.6B-0.3% | $1.6B+0.3% | $1.6B | N/A |
| Total Liabilities | $2.4B+15.5% | $2.1B-20.5% | $2.6B-6.5% | $2.8B | N/A |
| Current Liabilities | $1.0B+11.9% | $929.0M-38.3% | $1.5B+10.4% | $1.4B | N/A |
| Total Equity | $8.3B+21.2% | $6.8B+29.2% | $5.3B+30.7% | $4.1B+14.2% | $3.5B |
| Retained Earnings | $4.4B+25.5% | $3.5B+28.8% | $2.8B+12.0% | $2.5B | N/A |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
ARM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY26 | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|---|---|
| Operating Cash Flow | $2.1B | $1.5B+283.9% | $397.0M-63.6% | $1.1B+47.5% | $739.0M+61.4% | $458.0M |
| Capital Expenditures | $588.0M | $545.0M+148.9% | $219.0M+138.0% | $92.0M+43.8% | $64.0M+88.2% | $34.0M |
| Free Cash Flow | $1.5B | $979.0M+450.0% | $178.0M-82.2% | $998.0M+47.9% | $675.0M+59.2% | $424.0M |
| Investing Cash Flow | -$220.0M | -$325.0M-828.6% | -$35.0M+93.2% | -$516.0M-273.9% | -$138.0M+77.7% | -$619.0M |
| Financing Cash Flow | -$751.0M | -$548.0M-171.3% | -$202.0M+2.9% | -$208.0M-395.2% | -$42.0M-31.3% | -$32.0M |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
TTM is the trailing twelve months, Q2 FY2026 through Q1 FY2027, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
ARM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|---|
| Gross Margin | 97.5%+0.6pp | 97.0%+1.7pp | 95.2%-0.8pp | 96.0%+0.9pp | 95.2% |
| Operating Margin | 18.3%-2.4pp | 20.7%+17.3pp | 3.4%-21.6pp | 25.1%+1.6pp | 23.4% |
| Net Margin | 18.4%-1.4pp | 19.8%+10.3pp | 9.5%-10.1pp | 19.6%-0.8pp | 20.3% |
| Return on Equity | 10.9%-0.7pp | 11.6%+5.8pp | 5.8%-7.2pp | 12.9%-2.5pp | 15.5% |
| Return on Assets | 8.5%-0.4pp | 8.9%+5.0pp | 3.9%-3.8pp | 7.6% | N/A |
| Current Ratio | 6.00+0.8x | 5.20+2.4x | 2.79+0.2x | 2.60 | N/A |
| Debt-to-Equity | 0.290.0x | 0.31-0.2x | 0.50-0.2x | 0.69 | N/A |
| FCF Margin | 19.9%+15.5pp | 4.4%-26.4pp | 30.9%+5.7pp | 25.2%+9.5pp | 15.7% |
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Where Arm Holdings Ranks
Frequently Asked Questions
What is Arm Holdings's annual revenue?
Arm Holdings (ARM) reported $4.9B in total revenue for fiscal year 2026. This represents a 22.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Arm Holdings's revenue growing?
Arm Holdings (ARM) revenue grew by 22.8% year-over-year, from $4.0B to $4.9B in fiscal year 2026.
Is Arm Holdings profitable?
Yes, Arm Holdings (ARM) reported a net income of $904.0M in fiscal year 2026, with a net profit margin of 18.4%.
What is Arm Holdings's EBITDA?
Arm Holdings (ARM) had EBITDA of $1.1B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Arm Holdings's gross margin?
Arm Holdings (ARM) had a gross margin of 97.5% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Arm Holdings's operating margin?
Arm Holdings (ARM) had an operating margin of 18.3% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Arm Holdings's net profit margin?
Arm Holdings (ARM) had a net profit margin of 18.4% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Arm Holdings's return on equity (ROE)?
Arm Holdings (ARM) has a return on equity of 10.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Arm Holdings's free cash flow?
Arm Holdings (ARM) generated $979.0M in free cash flow during fiscal year 2026. This represents a 450.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Arm Holdings's operating cash flow?
Arm Holdings (ARM) generated $1.5B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Arm Holdings's total assets?
Arm Holdings (ARM) had $10.7B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Arm Holdings's capital expenditures?
Arm Holdings (ARM) invested $545.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Arm Holdings spend on research and development?
Arm Holdings (ARM) invested $2.8B in research and development during fiscal year 2026.
What is Arm Holdings's current ratio?
Arm Holdings (ARM) had a current ratio of 6.00 as of fiscal year 2026, which is generally considered healthy.
What is Arm Holdings's debt-to-equity ratio?
Arm Holdings (ARM) had a debt-to-equity ratio of 0.29 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Arm Holdings's return on assets (ROA)?
Arm Holdings (ARM) had a return on assets of 8.5% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Arm Holdings's Altman Z-Score?
Arm Holdings (ARM) has an Altman Z-Score of 68.37, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Arm Holdings's Piotroski F-Score?
Arm Holdings (ARM) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Arm Holdings's earnings high quality?
Arm Holdings (ARM) has an earnings quality ratio of 1.69x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Arm Holdings?
Arm Holdings (ARM) scores 77 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.