This page shows ARM HOLDINGS PLC (ARM) financial statements, including the 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 runs a near-pure gross-margin model, so year-to-year performance is driven more by investment pacing and cash timing than production cost.
FY2025’s earnings rebound did not convert into cash: net income reached$792M , yet free cash flow fell to$178M , an unusual split for such a high-margin model. That mismatch points to working-capital absorption and heavier reinvestment, with receivables rising to$1.1B while operating cash flow dropped to$397M .
The striking feature is not just scale but how little direct delivery cost sits under revenue: gross margin was
The balance-sheet posture improved even in a weak cash-conversion year. Cash climbed to
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of ARM HOLDINGS PLC'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 PLC has an operating margin of 18.3%, meaning the company retains $18 of operating profit per $100 of revenue. This results in a moderate score of 58/100, indicating healthy but not exceptional operating efficiency. This is down from 20.7% the prior year.
ARM HOLDINGS PLC's revenue surged 22.8% year-over-year to $4.9B, reflecting rapid business expansion. This strong growth earns a score of 72/100.
ARM HOLDINGS PLC 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 96/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 6.00, ARM HOLDINGS PLC holds $6.00 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
ARM HOLDINGS PLC converts 19.9% of revenue into free cash flow ($979.0M). This strong cash generation earns a score of 69/100.
ARM HOLDINGS PLC's ROE of 10.9% shows moderate profitability relative to equity, earning a score of 34/100. This is down from 11.6% the prior year.
ARM HOLDINGS PLC scores 106.22, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($420.2B) relative to total liabilities ($2.4B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
ARM HOLDINGS PLC passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, ARM HOLDINGS PLC 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 PLC generated $4.9B in revenue in fiscal year 2026. This represents an increase of 22.8% from the prior year.
ARM HOLDINGS PLC'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 PLC reported $904.0M in net income in fiscal year 2026. This represents an increase of 14.1% from the prior year.
ARM HOLDINGS PLC 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 PLC 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 PLC held $2.8B in cash against $0 in long-term debt as of fiscal year 2026.
ARM HOLDINGS PLC had 1.06B shares outstanding in fiscal year 2026. This represents an increase of 0.7% from the prior year.
Margins & Returns
ARM HOLDINGS PLC'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 PLC'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 PLC'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 PLC'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 PLC invested $2.8B in research and development in fiscal year 2026. This represents an increase of 34.0% from the prior year.
ARM HOLDINGS PLC 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.
ARM Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.5B+20.0% | $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 |
| Cost of Revenue | $32.0M+6.7% | $30.0M+3.4% | $29.0M-3.3% | $30.0M+7.1% | $28.0M0.0% | $28.0M-12.5% | $32.0M-3.0% | $33.0M |
| Gross Profit | $1.5B+20.3% | $1.2B+9.6% | $1.1B+8.1% | $1.0B-15.7% | $1.2B+27.0% | $955.0M+17.6% | $812.0M-10.4% | $906.0M |
| R&D Expenses | $698.0M-5.3% | $737.0M+6.7% | $691.0M+6.3% | $650.0M+19.0% | $546.0M+2.4% | $533.0M+5.1% | $507.0M+4.5% | $485.0M |
| SG&A Expenses | $320.0M+12.7% | $284.0M+12.7% | $252.0M-2.7% | $259.0M+0.8% | $257.0M+4.0% | $247.0M+2.5% | $241.0M+0.8% | $239.0M |
| Operating Income | $438.0M+136.8% | $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 |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $168.0M+3260.0% | $5.0M-92.2% | $64.0M+300.0% | $16.0M+124.2% | -$66.0M-512.5% | $16.0M+137.2% | -$43.0M-304.8% | $21.0M |
| Net Income | $313.0M+40.4% | $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 |
| EPS (Diluted) | N/A | $0.21-4.5% | $0.22+83.3% | $0.12 | N/A | $0.24+140.0% | $0.10-52.4% | $0.21 |
ARM Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $10.7B+5.2% | $10.2B+4.8% | $9.7B+3.4% | $9.4B+5.2% | $8.9B+5.1% | $8.5B+5.1% | $8.1B+2.6% | $7.9B |
| Current Assets | $6.2B+8.7% | $5.7B+6.8% | $5.4B+3.8% | $5.2B+7.1% | $4.8B+11.4% | $4.3B+6.6% | $4.1B+5.8% | $3.8B |
| Cash & Equivalents | $2.8B-2.0% | $2.8B+11.5% | $2.5B+28.7% | $2.0B-6.2% | $2.1B+2.4% | $2.0B+35.9% | $1.5B+2.3% | $1.5B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $1.3B+32.1% | $984.0M-12.1% | $1.1B-14.9% | $1.3B+18.8% | $1.1B+17.8% | $940.0M-6.6% | $1.0B+25.1% | $804.0M |
| Goodwill | $1.6B-0.1% | $1.6B0.0% | $1.6B-0.1% | $1.6B+0.4% | $1.6B+0.2% | $1.6B-1.5% | $1.6B+1.0% | $1.6B |
| Total Liabilities | $2.4B+1.6% | $2.4B+3.3% | $2.3B-3.6% | $2.4B+14.1% | $2.1B+0.8% | $2.1B+0.1% | $2.1B-6.5% | $2.2B |
| Current Liabilities | $1.0B-1.6% | $1.1B+10.1% | $960.0M-7.4% | $1.0B+11.6% | $929.0M+6.3% | $874.0M-2.8% | $899.0M-15.6% | $1.1B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $8.3B+6.3% | $7.8B+5.3% | $7.4B+5.7% | $7.0B+2.5% | $6.8B+6.5% | $6.4B+6.8% | $6.0B+6.2% | $5.7B |
| Retained Earnings | $4.4B+7.6% | $4.1B+5.7% | $3.9B+6.5% | $3.7B+3.7% | $3.5B+6.3% | $3.3B+8.2% | $3.1B+3.6% | $3.0B |
ARM Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $260.0M-28.8% | $365.0M-35.6% | $567.0M+70.8% | $332.0M+28.7% | $258.0M-39.0% | $423.0M+6950.0% | $6.0M+102.1% | -$290.0M |
| Capital Expenditures | $74.0M-58.7% | $179.0M+29.7% | $138.0M-10.4% | $154.0M+108.1% | $74.0M+17.5% | $63.0M+18.9% | $53.0M+82.8% | $29.0M |
| Free Cash Flow | $186.0M0.0% | $186.0M-56.6% | $429.0M+141.0% | $178.0M-3.3% | $184.0M-48.9% | $360.0M+866.0% | -$47.0M+85.3% | -$319.0M |
| Investing Cash Flow | -$201.0M-486.5% | $52.0M-73.5% | $196.0M+152.7% | -$372.0M-97.9% | -$188.0M-223.7% | $152.0M+102.7% | $75.0M+201.4% | -$74.0M |
| Financing Cash Flow | -$105.0M+19.2% | -$130.0M+31.6% | -$190.0M-54.5% | -$123.0M-355.6% | -$27.0M-3.8% | -$26.0M+50.9% | -$53.0M+44.8% | -$96.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
ARM Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.9%+0.3pp | 97.6%+0.1pp | 97.4%+0.3pp | 97.2%-0.6pp | 97.7%+0.6pp | 97.2%+0.9pp | 96.2%-0.3pp | 96.5% |
| Operating Margin | 29.4%+14.5pp | 14.9%+0.5pp | 14.4%+3.5pp | 10.8%-22.2pp | 33.0%+15.2pp | 17.8%+10.2pp | 7.6%-11.8pp | 19.4% |
| Net Margin | 21.0%+3.1pp | 17.9%-3.0pp | 21.0%+8.6pp | 12.3%-4.6pp | 16.9%-8.7pp | 25.6%+13.0pp | 12.7%-11.1pp | 23.8% |
| Return on Equity | 3.8%+0.9pp | 2.9%-0.3pp | 3.2%+1.3pp | 1.9%-1.2pp | 3.1%-0.9pp | 3.9%+2.2pp | 1.8%-2.2pp | 3.9% |
| Return on Assets | 2.9%+0.7pp | 2.2%-0.3pp | 2.5%+1.1pp | 1.4%-1.0pp | 2.4%-0.6pp | 3.0%+1.7pp | 1.3%-1.5pp | 2.8% |
| Current Ratio | 6.00+0.6 | 5.43-0.2 | 5.59+0.6 | 4.99-0.2 | 5.20+0.2 | 4.96+0.4 | 4.52+0.9 | 3.61 |
| Debt-to-Equity | 0.29-0.0 | 0.300.0 | 0.31-0.0 | 0.34+0.0 | 0.31-0.0 | 0.32-0.0 | 0.34-0.0 | 0.39 |
| FCF Margin | 12.5%-2.5pp | 15.0%-22.8pp | 37.8%+20.9pp | 16.9%+2.1pp | 14.8%-21.8pp | 36.6%+42.2pp | -5.6%+28.4pp | -34.0% |
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Frequently Asked Questions
What is ARM HOLDINGS PLC's annual revenue?
ARM HOLDINGS PLC (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 PLC's revenue growing?
ARM HOLDINGS PLC (ARM) revenue grew by 22.8% year-over-year, from $4.0B to $4.9B in fiscal year 2026.
Is ARM HOLDINGS PLC profitable?
Yes, ARM HOLDINGS PLC (ARM) reported a net income of $904.0M in fiscal year 2026, with a net profit margin of 18.4%.
What is ARM HOLDINGS PLC's EBITDA?
ARM HOLDINGS PLC (ARM) had EBITDA of $1.1B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is ARM HOLDINGS PLC's gross margin?
ARM HOLDINGS PLC (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 PLC's operating margin?
ARM HOLDINGS PLC (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 PLC's net profit margin?
ARM HOLDINGS PLC (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 PLC's return on equity (ROE)?
ARM HOLDINGS PLC (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 PLC's free cash flow?
ARM HOLDINGS PLC (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 PLC's operating cash flow?
ARM HOLDINGS PLC (ARM) generated $1.5B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are ARM HOLDINGS PLC's total assets?
ARM HOLDINGS PLC (ARM) had $10.7B in total assets as of fiscal year 2026, including both current and long-term assets.
What are ARM HOLDINGS PLC's capital expenditures?
ARM HOLDINGS PLC (ARM) invested $545.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does ARM HOLDINGS PLC spend on research and development?
ARM HOLDINGS PLC (ARM) invested $2.8B in research and development during fiscal year 2026.
What is ARM HOLDINGS PLC's current ratio?
ARM HOLDINGS PLC (ARM) had a current ratio of 6.00 as of fiscal year 2026, which is generally considered healthy.
What is ARM HOLDINGS PLC's debt-to-equity ratio?
ARM HOLDINGS PLC (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 PLC's return on assets (ROA)?
ARM HOLDINGS PLC (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 PLC's Altman Z-Score?
ARM HOLDINGS PLC (ARM) has an Altman Z-Score of 106.22, 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 PLC's Piotroski F-Score?
ARM HOLDINGS PLC (ARM) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. 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 PLC's earnings high quality?
ARM HOLDINGS PLC (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 PLC?
ARM HOLDINGS PLC (ARM) scores 71 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.