Fundamental analysis · SEC EDGAR · as of 31/03/2026
ARM · Nasdaq · Technology
Fundamental quality
84
out of 100
Arm Holdings Plc grows profitably: it increases revenue at double digits (16.2% a year) without giving up profitability (net margin 18.4%). On fundamental quality it scores 84 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +16.2%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Arm designs the world's most-used chip architecture: nearly every smartphone runs on processors based on its designs. It manufactures nothing; it licenses its IP and collects a small royalty on every chip sold — a very high-margin model.
EPS growth: 12% · Revenue growth: 16.2%
Net margin: 18.4%
Net debt/EBITDA: 0x · FCF: 19.9%
Source: SEC EDGAR · as of 31/03/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2022 | 2,703 | 549 | 424 | — |
| 2023 | 2,679 | 524 | 675 | — |
| 2024 | 3,233 | 306 | 998 | — |
| 2025 | 4,007 | 792 | 178 | — |
| 2026 | 4,920 | 904 | 979 | — |
Between 2022 and 2026, revenue went from $2,703M to $4,920M (+82%) and net income went from $549M to $904M (+65%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.
The serious investor's standard
Open free account →Anyone who wants low commissions and access to almost any market in the world.
Popular in the U.S.
Open free account →Anyone investing in the U.S. who wants a powerful, commission-free stock app.
Is Arm Holdings Plc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Arm Holdings Plc a good company to invest in?
In terms of business quality, Arm Holdings Plc scores 84 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Arm Holdings Plc a profitable company?
Yes. Arm Holdings Plc shows a net margin of 18.4%, a sign of a profitable business.
Does Arm Holdings Plc have a lot of debt?
Not particularly. Its net debt is 0 times its EBITDA, a low level.
Is Arm Holdings Plc growing?
Its revenue has grown 16.2% annualized in recent years and its earnings per share 12%.
Does Arm Holdings Plc generate cash?
Yes. It converts about 19.9% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
More Technology companies
Salesforce (CRM) · Advanced Micro Devices (AMD) · Adobe (ADBE) · Cisco (CSCO) · Accenture (ACN) · ServiceNow (NOW) · see more →