ARM— Arm Holdings plc
NasdaqGSTechnology · Semiconductors
Performance
Arm Holdings plc (ARM) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
Arm Holdings plc (ARM) operates in the Semiconductors space within the Technology sector. With a market cap of $435.5B, it qualifies as a large-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (132.2×) is lower than trailing P/E (474.1×) — analysts expect earnings to improve
- Revenue grew 20% year-over-year — exceptional top-line expansion
- Earnings grew 48% YoY — bottom-line is expanding fast
- Healthy profit margin of 18.4%
- Current ratio of 6.0× — ample short-term liquidity
- High P/E of 474.1× implies high expectations already priced in — leaves little room for disappointment
- High debt-to-equity of 5.93× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
- Price is near its 52-week high — limited near-term upside, higher pullback risk
- High beta of 3.79 — this stock is significantly more volatile than the broader market
Verdict
Hold
Mixed signals — strengths and risks roughly balance. Wait for a clearer catalyst.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Jul 29, 2026
36
days
EPS (TTM)
$0.86
P/E (TTM)
474.1
Fwd P/E
132.2
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $407.72
Graham Number
√(22.5 × EPS × Book Value)
$12.28
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
6/10
75% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
12.0%Return on equity — measures how efficiently capital is used
Positive profit margin
18.4%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+20.1%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+47.9%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
5.93×Low financial leverage reduces risk of distress
Current ratio above 1
6.00×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$4.7B/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Technology
About Arm Holdings plc
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. It provides its products and services in the United States, China, Japan, Taiwan, Korea, and internationally. The company was founded in 1990 and is based in Cambridge, United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.
Disclaimer: This page — including any buy/hold/avoid view, fair value or price estimate — is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.