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$260.01
Market Capi
$302B
Growth-adj P/E (3-yr hist)i
8.9x
Growth-adj P/E (3-yr proj)i
2.1x
P/S 27Ei
51x
P/S 29Ei
28x
EV/EBIT 27Ei
114x
EV/EBIT 29Ei
59x
P/E 27Ei
234x
P/E 29Ei
99x
P/S 27Ei
51x
EV/EBIT 27Ei
114x
P/E 27Ei
234x
P/S 29Ei
28x
EV/EBIT 29Ei
59x
P/E 29Ei
99x
Revenue
2027E
$6.0B
Gross Margini
98%
Hist. CAGRi
22%
Proj. CAGRi
28%
EBIT
2027E
$2.6B
Op. Margini
18%
Hist. CAGRi
8.4%
Proj. CAGRi
74%
Net profit
2027E
$1.3B
Net Margini
18%
Hist. CAGRi
20%
Proj. CAGRi
47%
Business Model
Recent Developments
Average Targeti
$298.84-0%
Consensusi
Outperform
40 analysts covering
Net cashi
$4.4B
Div. Yieldi
n/a
Dilutioni
0.8%
Market Capi
$302B
P/E 27Ei
234x
Adj. P/E (fwd.)i
2.1x
Revenue 27E
$6.0B
Proj. CAGRi
28%
Gross Margini
98%
EBIT 27E
$2.6B
Proj. CAGRi
74%
Op. Margini
18%
Net Profit 27E
$1.3B
Proj. CAGRi
47%
Net Margini
18%
Average Targeti
$298.84-0%
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 Chief Operating Officer in January 2025, bringing operational depth to scale the manufacturing and ecosystem partnerships required by the AGI CPU roadmap. Drew Henry has served as a corporate principal since 2016 and provides 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
Arm reported record Q4 FY2026 revenue of $1.49 billion, up 20% year-over-year, marking the third consecutive year of 20%-plus growth and the highest quarterly revenue in company history.
Non-GAAP EPS came in ahead of consensus, driven by licensing revenue surging 29% year-over-year to $819 million as customers rushed to secure the latest Armv9 architecture ahead of product cycles.
Data center royalty revenue more than doubled year-over-year in the quarter — the standout KPI that shifted the market narrative from ARM as a mobile-chip IP story to an AI infrastructure play.
Management guided to continued 20%-plus growth for FY2027, anchored by the Arm AGI CPU launch, and signaled a $15 billion addressable revenue opportunity in agentic AI infrastructure CPUs by FY2031, a figure that drove significant analyst price target revisions upward.
Recent developments
On May 6, 2026, Arm officially launched the Arm AGI CPU — its first in-house designed data center processor — targeting agentic AI workloads with up to 136 Neoverse V3 cores. Meta was named the lead partner and co-developer, with broader availability expected in H2 2026.
By June 2026, the AGI CPU had already generated more than $2 billion in committed customer demand across FY2027 and FY2028, with Oracle Cloud Infrastructure joining as an ecosystem partner alongside Meta, Nvidia, and ByteDance.
On June 4, 2026, Mizuho raised its price target on Arm from $425 to $500, maintaining an Outperform rating, citing agentic AI tailwinds as a structural accelerant for ARM's data center royalty mix.
Arm also entered a multi-year strategic partnership with Tensor to power an agentic AI personal Robocar — an early signal of the company's ambitions beyond traditional compute categories into autonomous systems.
Debate & sentiment
Bulls center the thesis on Armv9 royalty step-up and the data center ramp: as hyperscalers move from x86 to ARM-based CPUs for AI inference and agentic workloads, the royalty per chip climbs materially, and the TAM expands from mobile-dominated to a multi-vertical platform story.
Sceptics point to stretched valuation multiples that leave almost no room for execution stumbles — with the stock having more than tripled year-to-date, forward estimates would need to materialize on schedule for the current price to hold, let alone appreciate.
RISC-V adoption remains a slow-burning bear case: open-source architecture threatens the licensing model at the low end of the market, and if adoption accelerates in cost-sensitive segments like IoT and automotive, it could erode the royalty base over a multi-year horizon.
A key swing factor is the pace of data center royalty conversion — if AGI CPU orders convert to production revenue in H2 2026 on schedule, it validates the $15 billion thesis and likely compresses the bull/bear gap; any slip would expose the stock to meaningful multiple compression given current positioning.
Consensusi
Outperform
Average targeti
$298.84-0%
Highest targeti
$500.00+67%
Lowest targeti
$125.00-58%
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