Arm Holdings (ARM) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 5, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 6-K for Q1 FY2027, filed Jul 29, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ARM SEC filings page.
Arm Holdings (ARM) reported $5.2B in revenue over the twelve months to Jun 30, 2026, up 25.1% from the prior twelve months. 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 expansion turns revenue into unusually high gross profit, but heavier reinvestment and working-capital swings make cash generation uneven.
Operating margin recovered from3.4% in FY2024 to18.3% in FY2026. Yet FCF fell to$178M in FY2025 before reaching$979M in FY2026, showing that earnings improvement did not make cash generation linear; reinvestment and working-capital timing mattered.
Gross margin remained exceptionally high, moving from
The FY2026 current ratio reached 6.0x while debt-to-equity was 0.3x, indicating substantial short-term liquidity alongside limited leverage. With equity substantially above liabilities, the balance sheet appears financed more by accumulated capital than borrowing, so growth did not require rising leverage.
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 71/100, 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 70/100, 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 94/100.
Arm Holdings converts 19.9% of revenue into free cash flow ($979.0M). This strong cash generation earns a score of 83/100.
Arm Holdings's ROE of 10.9% shows moderate profitability relative to equity, earning a score of 58/100. This is down from 11.6% the prior year.
Arm Holdings scores 83.42, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($328.4B) 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 $1.3B in revenue in Q1 2027. This represents an increase of 22.4% from the same quarter a year earlier. Against the prior quarter it is down 13.5%.
Arm Holdings's EBITDA was $166.0M in Q1 2027, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.6% from the same quarter a year earlier. Against the prior quarter it is down 67.4%.
Arm Holdings reported $270.0M in net income in Q1 2027. This represents an increase of 107.7% from the same quarter a year earlier. Against the prior quarter it is down 13.7%.
Arm Holdings earned $0.25 per diluted share (EPS) in Q1 2027. This represents an increase of 108.3% from the same quarter a year earlier. Against the prior quarter it is down 16.7%.
Cash & Balance Sheet
Arm Holdings generated $705.0M in free cash flow in Q1 2027, representing cash available after capex. This represents an increase of 296.1% from the same quarter a year earlier. Against the prior quarter it is up 279.0%.
Arm Holdings held $3.1B in cash as of Q1 2027; long-term debt is not reported for that period.
Not reported for Q1 2027.
Margins & Returns
Arm Holdings's gross margin was 97.2% in Q1 2027, indicating the percentage of revenue retained after direct costs. This is up 0.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.6 percentage points.
Arm Holdings's operating margin was 7.1% in Q1 2027, reflecting core business profitability. This is down 3.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 22.3 percentage points.
Arm Holdings's net profit margin was 20.9% in Q1 2027, showing the share of revenue converted to profit. This is up 8.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.1 percentage points.
Arm Holdings's ROE was 3.1% in Q1 2027, measuring profit generated per dollar of shareholder equity. This is up 1.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.6 percentage points.
Capital Allocation
Arm Holdings invested $838.0M in research and development in Q1 2027. This represents an increase of 28.9% from the same quarter a year earlier. Against the prior quarter it is up 20.1%.
Arm Holdings invested $197.0M in capex in Q1 2027, funding long-term assets and infrastructure. This represents an increase of 27.9% from the same quarter a year earlier. Against the prior quarter it is up 166.2%.
Not reported for Q1 2027.
ARM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'276-K | Q4'266-K | Q3'266-K | Q2'266-K | Q1'266-K | Q4'2520-F | Q3'256-K | Q2'256-K |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+22.4% | $1.5B+20.1% | $1.2B+26.3% | $1.1B+34.5% | $1.1B+12.1% | $1.2B+33.7% | $983.0M+19.3% | $844.0M+4.7% |
| Cost of Revenue | $36.0M+20.0% | $32.0M+14.3% | $30.0M+7.1% | $29.0M-9.4% | $30.0M-9.1% | $28.0M-31.7% | $28.0M-22.2% | $32.0M-30.4% |
| Gross Profit | $1.3B+22.5% | $1.5B+20.2% | $1.2B+26.9% | $1.1B+36.2% | $1.0B+12.9% | $1.2B+36.8% | $955.0M+21.2% | $812.0M+6.8% |
| R&D Expenses | $838.0M+28.9% | $698.0M+27.8% | $737.0M+38.3% | $691.0M+36.3% | $650.0M+34.0% | $546.0M-6.5% | $533.0M+23.4% | $507.0M-19.0% |
| SG&A Expenses | $317.0M+22.4% | $320.0M+24.5% | $284.0M+15.0% | $252.0M+4.6% | $259.0M+8.4% | $257.0M-8.5% | $247.0M+14.4% | $241.0M-16.9% |
| Operating Income | $91.0M-20.2% | $438.0M+6.8% | $185.0M+5.7% | $163.0M+154.7% | $114.0M-37.4% | $410.0M+1763.6% | $175.0M+30.6% | $64.0M+141.0% |
| EBITDA | $166.0M-4.6% | $509.0M+10.9% | $248.0M+11.7% | $218.0M+101.9% | $174.0M-22.7% | $459.0M+665.0% | $222.0M+26.1% | $108.0M+193.9% |
| Income Tax | -$17.0M-206.3% | $168.0M+354.5% | $5.0M-68.8% | $64.0M+248.8% | $16.0M-23.8% | -$66.0M+60.2% | $16.0M-72.9% | -$43.0M-377.8% |
| Net Income | $270.0M+107.7% | $313.0M+49.0% | $223.0M-11.5% | $238.0M+122.4% | $130.0M-41.7% | $210.0M-6.3% | $252.0M+189.7% | $107.0M+197.3% |
| EPS (Basic) | $0.25+108.3% | $0.29+52.6% | $0.21-12.5% | $0.22+120.0% | $0.12-42.9% | $0.19-13.6% | $0.24+200.0% | $0.10+190.9% |
| EPS (Diluted) | $0.25+108.3% | $0.30+50.0% | $0.21-12.5% | $0.22+120.0% | $0.12-42.9% | $0.20-4.8% | $0.24+200.0% | $0.10+190.9% |
| Diluted Shares (Avg) | 1.08B+1.2% | N/A | 1.07B+0.5% | 1.07B+0.6% | 1.06B+0.5% | N/A | 1.06B+1.4% | 1.06B+3.7% |
Not reported in any period shown, so not listed: Interest Expense.
ARM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'276-K | Q4'266-K | Q3'266-K | Q2'266-K | Q1'266-K | Q4'2520-F | Q3'256-K | Q2'256-K |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $11.2B+19.2% | $10.7B+19.8% | $10.2B+19.8% | $9.7B+20.1% | $9.4B+19.2% | $8.9B+12.7% | $8.5B+19.4% | $8.1B+18.7% |
| Current Assets | $6.3B+22.5% | $6.2B+29.1% | $5.7B+32.3% | $5.4B+32.1% | $5.2B+34.7% | $4.8B+15.1% | $4.3B+19.5% | $4.1B+18.1% |
| Cash & Equivalents | $3.1B+56.3% | $2.8B+31.9% | $2.8B+37.9% | $2.5B+68.1% | $2.0B+33.5% | $2.1B+8.4% | $2.0B+31.3% | $1.5B+6.5% |
| Short-Term Investments | $830.0M-12.6% | $850.0M+14.9% | $735.0M+15.7% | $740.0M-14.0% | $950.0M-5.0% | $740.0M-26.0% | $635.0M-25.3% | $860.0M+7.5% |
| Accounts Receivable | $1.1B-14.9% | $1.3B+17.4% | $984.0M+4.7% | $1.1B+11.2% | $1.3B+63.6% | $1.1B+41.7% | $940.0M+17.6% | $1.0B+16.4% |
| Long-Term Investments | $17.8M-96.9% | $13.2M-97.7% | $13.8M-98.4% | $556.0M-30.2% | $570.0M-28.7% | $565.0M-23.8% | $845.0M+13.0% | $796.0M+9.8% |
| Goodwill | $1.6B-0.2% | $1.6B+0.2% | $1.6B+0.6% | $1.6B-1.0% | $1.6B+0.1% | $1.6B-0.3% | $1.6B-0.7% | $1.6B+1.6% |
| Total Liabilities | $2.6B+7.5% | $2.4B+15.5% | $2.4B+14.5% | $2.3B+11.0% | $2.4B+7.7% | $2.1B-20.5% | $2.1B-1.6% | $2.1B+1.8% |
| Current Liabilities | $1.2B+16.4% | $1.0B+11.9% | $1.1B+20.9% | $960.0M+6.8% | $1.0B-2.6% | $929.0M-38.3% | $874.0M+0.9% | $899.0M+13.1% |
| Non-Current Liabilities | $1.4B+0.6% | $1.4B+18.3% | $1.3B+9.8% | $1.3B+14.3% | $1.4B+17.3% | $1.2B+3.3% | $1.2B-3.4% | $1.2B-5.4% |
| Total Equity | $8.6B+23.2% | $8.3B+21.2% | $7.8B+21.5% | $7.4B+23.2% | $7.0B+23.7% | $6.8B+29.2% | $6.4B+28.3% | $6.0B+26.0% |
| Retained Earnings | $4.7B+28.4% | $4.4B+25.5% | $4.1B+24.0% | $3.9B+26.9% | $3.7B+23.5% | $3.5B+28.8% | $3.3B+31.9% | $3.1B+26.3% |
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. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'276-K | Q4'266-K | Q3'266-K | Q2'266-K | Q1'266-K | Q4'2520-F | Q3'256-K | Q2'256-K |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $902.0M+171.7% | $260.0M+0.8% | $365.0M-13.7% | $567.0M+9350.0% | $332.0M+214.5% | $258.0M-61.3% | $423.0M+36.5% | $6.0M-97.4% |
| Depreciation & Amortization | $75.0M+25.0% | $71.0M+44.9% | $63.0M+34.0% | $55.0M+25.0% | $60.0M+39.5% | $49.0M-69.8% | $47.0M+11.9% | $44.0M+7.3% |
| Stock-Based Compensation | $343.0M+42.3% | N/A | $285.0M+25.6% | $265.0M+21.6% | $241.0M+32.4% | N/A | $227.0M+14.1% | $218.0M-57.9% |
| Capital Expenditures | $197.0M+27.9% | $74.0M0.0% | $179.0M+184.1% | $138.0M+160.4% | $154.0M+431.0% | $74.0M+572.7% | $63.0M+200.0% | $53.0M+55.9% |
| Free Cash Flow | $705.0M+296.1% | $186.0M+1.1% | $186.0M-48.3% | $429.0M+1012.8% | $178.0M+155.8% | $184.0M-72.0% | $360.0M+24.6% | -$47.0M-124.4% |
| Investing Cash Flow | -$267.0M+28.2% | -$201.0M-6.9% | $52.0M-65.8% | $196.0M+161.3% | -$372.0M-402.7% | -$188.0M-10.6% | $152.0M+223.6% | $75.0M+263.0% |
| Financing Cash Flow | -$326.0M-165.0% | -$105.0M-288.9% | -$130.0M-400.0% | -$190.0M-258.5% | -$123.0M-28.1% | -$27.0M+77.7% | -$26.0M+45.8% | -$53.0M-120.8% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
ARM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'276-K | Q4'266-K | Q3'266-K | Q2'266-K | Q1'266-K | Q4'2520-F | Q3'256-K | Q2'256-K |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.2%+0.1pp | 97.9%+0.1pp | 97.6%+0.4pp | 97.4%+1.2pp | 97.2%+0.7pp | 97.7%+2.2pp | 97.2%+1.5pp | 96.2%+1.9pp |
| Operating Margin | 7.1%-3.8pp | 29.4%-3.6pp | 14.9%-2.9pp | 14.4%+6.8pp | 10.8%-8.6pp | 33.0%+30.7pp | 17.8%+1.5pp | 7.6%+26.9pp |
| Net Margin | 20.9%+8.6pp | 21.0%+4.1pp | 17.9%-7.7pp | 21.0%+8.3pp | 12.3%-11.4pp | 16.9%-7.2pp | 25.6%+15.1pp | 12.7%+26.3pp |
| Return on Equity | 3.1%+1.3pp | 3.8%+0.7pp | 2.9%-1.1pp | 3.2%+1.4pp | 1.9%-2.1pp | 3.1%-1.2pp | 3.9%+2.2pp | 1.8%+4.1pp |
| Return on Assets | 2.4%+1.0pp | 2.9%+0.6pp | 2.2%-0.8pp | 2.5%+1.1pp | 1.4%-1.4pp | 2.4%-0.5pp | 3.0%+1.8pp | 1.3%+2.9pp |
| Current Ratio | 5.25+0.3x | 6.00+0.8x | 5.43+0.5x | 5.59+1.1x | 4.99+1.4x | 5.20+2.4x | 4.96+0.8x | 4.52+0.2x |
| Debt-to-Equity | 0.300.0x | 0.290.0x | 0.300.0x | 0.310.0x | 0.34-0.1x | 0.31-0.2x | 0.32-0.1x | 0.34-0.1x |
| Asset Turnover | 0.120.0x | 0.140.0x | 0.120.0x | 0.120.0x | 0.110.0x | 0.140.0x | 0.120.0x | 0.100.0x |
| FCF Margin | 54.7%+37.8pp | 12.5%-2.3pp | 15.0%-21.6pp | 37.8%+43.4pp | 16.9%+50.9pp | 14.8%-55.9pp | 36.6%+1.6pp | -5.6%-29.5pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Arm Holdings ARM | FY2026 | $4.9B | $904.0M | 18.4% | $328.4B | 77/100 |
| Qualcomm Inc QCOM | FY2025 | $44.3B | $5.5B | 12.5% | $197.5B | 78/100 |
| Micron Technology, Inc. MU | FY2025 | $37.4B | $8.5B | 22.8% | $1.2T | 57/100 |
| Texas Instruments Incorporated TXN | FY2025 | $17.7B | $5.0B | 28.3% | $268.3B | 68/100 |
| Intel Corp INTC | FY2025 | $52.9B | -$267.0M | -0.5% | $630.8B | 25/100 |
| Analog Devices, Inc. ADI | FY2025 | $11.0B | $2.3B | 20.6% | $202.1B | 61/100 |
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 P/E ratio?
Arm Holdings (ARM) trades at 315x earnings, its market capitalization divided by net income of $1.0B net income, trailing 12 months to June 30, 2026. The market capitalization is $328.4B as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Arm Holdings's price-to-sales ratio?
Arm Holdings (ARM) trades at 63.7x sales, its market capitalization divided by revenue of $5.2B revenue, trailing 12 months to June 30, 2026. The market capitalization is $328.4B as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Arm Holdings's Altman Z-Score?
Arm Holdings (ARM) has an Altman Z-Score of 83.42, 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.