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$264.79
Market Capi
$271B
Growth-adj P/E (3-yr hist)i
8.9x
Growth-adj P/E (3-yr proj)i
1.8x
P/S 27Ei
45x
P/S 29Ei
25x
EV/EBIT 27Ei
99x
EV/EBIT 29Ei
52x
P/E 27Ei
203x
P/E 29Ei
91x
P/S 27Ei
45x
EV/EBIT 27Ei
99x
P/E 27Ei
203x
P/S 29Ei
25x
EV/EBIT 29Ei
52x
P/E 29Ei
91x
Revenue
2027E
$6.1B
Gross Margini
98%
Hist. CAGRi
22%
Proj. CAGRi
30%
EBIT
2027E
$2.7B
Op. Margini
18%
Hist. CAGRi
8.4%
Proj. CAGRi
77%
Net profit
2027E
$1.3B
Net Margini
18%
Hist. CAGRi
20%
Proj. CAGRi
50%
Business Model
Recent Developments
Average Targeti
$287.79+3%
Consensusi
Outperform
40 analysts covering
Net cashi
$4.5B
Div. Yieldi
n/a
Dilutioni
0.8%
Market Capi
$271B
P/E 27Ei
203x
Adj. P/E (fwd.)i
1.8x
Revenue 27E
$6.1B
Proj. CAGRi
30%
Gross Margini
98%
EBIT 27E
$2.7B
Proj. CAGRi
77%
Op. Margini
18%
Net Profit 27E
$1.3B
Proj. CAGRi
50%
Net Margini
18%
Average Targeti
$287.79+3%
Consensusi
Outperform
40 analysts covering
Profile
Arm designs and licenses CPU and GPU instruction-set architectures (ISAs) and physical IP to semiconductor companies, who build those designs into chips for virtually every device category. Arm does not manufacture chips; it earns revenue from two streams:
Industry
Arm sells primarily to semiconductor companies and fabless chip designers — Qualcomm, Apple, MediaTek, Samsung, and NVIDIA are among the largest licensees. Hyperscalers (Amazon, Google, Microsoft, Meta) increasingly license Arm IP directly for custom silicon. Geographic mix is diversified: the US accounts for roughly 43% of revenue, followed by China (~19%), Taiwan (~16%), and South Korea (~8%). The market is specialized and highly concentrated — Arm holds dominant share in mobile application processors and is rapidly expanding in data center and automotive SoCs.
Key metrics
Economic moat
Arm's moat rests on decades of accumulated ecosystem lock-in — hundreds of billions of existing Arm-compatible chips mean the entire software stack, toolchain, and developer community is already optimized for Arm ISAs. Switching costs for chip designers are extremely high: abandoning Arm means re-architecting silicon, recompiling software stacks, and retraining engineering teams. Armv9 introduced architecture-level encryption and compute capabilities that are now contractual requirements in premium mobile and cloud SoCs, further cementing the per-chip royalty stream. The company also benefits from a natural network effect: more licensees mean more software compatibility, which attracts more licensees.
Rene Haas
Haas became CEO in February 2022, inheriting a company that had spent years as a private subsidiary of SoftBank. He led Arm's return to public markets via the largest tech IPO of 2023 and has nearly doubled revenue and profit during his tenure. Prior to CEO, he was President of the IP Products Group at Arm, giving him deep familiarity with the licensing business before taking the top role. His strategic bet on positioning Arm as the foundational compute platform for the AI era — culminating in the Arm AGI CPU launch — defines the company's current growth narrative.
Jason Child
Child joined Arm as CFO in October 2022, shortly before the IPO process intensified. He previously served as CFO at Splunk, bringing public-company financial discipline and investor relations experience at exactly the moment Arm needed it. His tenure has coincided with the shift to Arm Total Access subscription licensing, which has improved revenue predictability and contract visibility.
Masayoshi Son
Son's SoftBank acquired Arm in 2016 for $32 billion and retains a majority stake following the 2023 IPO, making him the single most influential shareholder. His long-term conviction in Arm as a core AI infrastructure asset has shaped the company's strategic patience — prioritizing architecture leadership over near-term margin extraction. Son's continued board presence as Chairman signals SoftBank's intent to remain a controlling stakeholder rather than a financial exit.
Other key figures
Eric Hayes joined as Executive Vice President, Operations in January 2025, bringing operational depth to scale the manufacturing and ecosystem partnerships required by the AGI CPU roadmap. Drew Henry, Executive Vice President of Arm's Physical AI Business Unit, previously spent nearly 11 years at NVIDIA and was the founding general manager of Arm's infrastructure business from 2017 to 2019, providing continuity across Arm's product strategy through multiple ownership transitions.
P/S Ratioi
EV/EBITi
P/E RatioiP/E values for 2024, 2026, and 2027E were omitted from this chart because negative or above 150x values usually occur around break-even earnings and would distort the scale. The raw values remain in the table below.
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Fiscal Q1 revenue (quarter ended June 30, 2026) reached $1.29 billion, up 22% year-over-year and a first-quarter record, with non-GAAP EPS of $0.45 beating the high end of guidance.
Royalty revenue rose 22% to $715 million and licensing revenue rose 23% to $574 million, with data center royalties more than doubling year-over-year again.
Management said customer demand for the new AGI CPU now exceeds $2 billion across fiscal 2027-2028, though supply covers only about half that backlog.
Fiscal Q2 guidance: revenue of $1.33–$1.43 billion, non-GAAP EPS of $0.43–$0.51.
Recent developments
On September 8, 2026, Arm launched a new AI-native compute platform for agentic AI and mobile graphics, alongside an expanded AGI CPU roadmap and a new Neoverse CSS N4 subsystem for cloud infrastructure.
The same day, Arm extended its Arm Total Design program into physical AI, inviting partners to collaborate on a robotics capability framework, and introduced the Arm AI Portal, a developer platform consolidating AI tools across its compute stack.
The U.S. Federal Trade Commission's antitrust inquiry, opened May 2026, remains open, examining whether Arm's move into chip production lets it restrict licensing terms for rival customers.
Debate & sentiment
Bulls point to hyperscalers such as Meta, Oracle, and ByteDance adopting Arm-based server silicon, framing the AGI CPU as Arm's entry into direct silicon revenue on top of its royalty base.
Skeptics note first-generation AGI CPU gross margins run near 30%, far below Arm's historical near-98% IP-licensing margin, making early volume dilutive even as revenue grows.
The open FTC probe adds regulatory uncertainty with no resolution timeline, and any remedy constraining licensing terms would weigh on Arm's core margin line.
Smartphone royalty growth has been guided down to the high teens, from a prior roughly 20% expectation, as cost inflation pressures handset makers.
Consensusi
Outperform
Average targeti
$287.79+3%
Highest targeti
$500.00+79%
Lowest targeti
$125.00-55%
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