Reading the tape
NASDAQ: ARM
Arm Holdings plc American Depositary Shares
Technology · Semiconductors
Market Cap
$226.92B
52w High
$239.50
52w Low
$100.02
P/E
250.78
Volume
11.47M
Outstanding Shares
1.06B
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
1Y Price: 83.03%Revenue (TTM): 22.79%FCF (TTM): 500%P/E: 70th pct
What changed
The stock rose 83.03% over the last year. Revenue grew 22.79% over the trailing twelve months. Operating margin moved from 20.74% to 18.31%. Free cash flow grew 500% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/E range (70th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 18.31% — continued expansion would be needed to justify the premium. Revenue growth of 22.79% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.
CEORene Anthony Andrada Haas
SectorTechnology
IndustrySemiconductors
Employees8,330
IPO dateSep 14, 2023
Valuation
Forward P/E—
EV/EBITDA136.72
Enterprise value$158.19B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth20.06%
Gross margin94.63%▼2.51%vs FY2025
Operating margin18.31%▼10.58%vs FY2025
ROE10.91%▼5.79%vs FY2025
Analyst consensus
RatingBuy
Target price$163.75▼23.22%
20
Buy
5
Hold
2
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 29, 2026
Q3 FY26 · EPS est $0.38 · Revenue est $1.26B
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