Market cap
$287.5B
at current price
Arm Holdings plc · ADR · Cambridge, UK
The royalty on every chip, priced for perfection.
Arm licenses CPU designs and collects a royalty on each chip shipped. Revenue is growing above 20% a year with ~97% gross margin, while the stock trades near 90× forward earnings and swings with a beta near 3.8.
Last close · Oct 8, 2026
$275.29
−19.08 (−6.48%)
YTD +151.8% · 1Y +61.3%
52-week range
$100–453
intraday low / high
Forward P/E
~90×
trailing GAAP ~284×
Revenue TTM
$5.16B
+22% YoY
Analysts
Buy
40 · mean target $290.71
Next earnings
Nov 4
Q2 FY27, after close
Price, last 12 months
Daily closes with the 50-day average. The stock roughly quadrupled from the January low to the June peak, then gave back about a third.
1Y closing high
$439.75
Jun 18, 2026
1Y closing low
$104.12
Jan 14, 2026
SMA 50
$269
price above
SMA 200
$219
price above
RSI 14
46.7
neutral
ATR 20
$19.1
~7% daily range
Beta
3.79
vs. S&P 500
From peak
−37%
vs. Jun 18 close
Royalty vs. licensing, by quarter
Royalties are the recurring stream paid per chip shipped. Licensing is lumpier, tied to the timing of large deals. Q2 FY27 is company guidance at the midpoint. Arm's fiscal year ends March 31.
RoyaltyLicense & otherGuidance
Q1 FY27
$1,289M
+22% YoY, record Q1
Royalty
$715M
+22% · DC more than 2×
License
$574M
+23% · $193M SoftBank
ACV
$1,732M
+13% YoY
Q2 guide
$1.38B
±$50M · EPS $0.47
Gross margin
~98%
non-GAAP
| Quarter | Ended | Royalty | License & other | Total | Total YoY | Non-GAAP EPS |
|---|
Fiscal-year financials
Revenue in US$ millions. FY26 GAAP net income was $904M ($0.85 diluted EPS) on $4.92B revenue; R&D alone was 56% of revenue.
| FY26 | US$M | % rev |
|---|---|---|
| Revenue | 4,920 | 100% |
| Gross profit | 4,799 | 97.5% |
| R&D | 2,776 | 56.4% |
| SG&A | 1,115 | 22.7% |
| Operating income (GAAP) | 908 | 18.5% |
| Net income (GAAP) | 904 | 18.4% |
| Non-GAAP EPS | $1.77 | — |
Watch list
What moves the thesis, sorted by direction.
Tailwind
Data center royalties
Data center royalties more than doubled YoY for a third straight quarter as hyperscalers ship custom Arm CPUs.
Tailwind
Higher royalty rates per chip
Armv9 and Compute Subsystems carry higher rates. Over 70% of forecast royalties through FY31 are already under contract.
Watch
Royalty growth slowing
FY27 royalty growth outlook cut from ~20% to high teens; Q2 guided to low teens on a double-digit smartphone decline.
Watch
SoftBank concentration
The SoftBank licensing and design-services deal was $193M of Q1 licensing, with ~$200M a quarter expected. Related parties were ~30% of revenue.
Risk
FTC probe
The stock fell after the July 29 report on news of a US FTC investigation, despite beating estimates.
Risk
Valuation and volatility
Near 90× forward earnings with a beta of ~3.8. Average daily range is about $19, so position sizing matters.
Calendar
Nov 4, 2026
Q2 FY27 earnings
After US close (Nov 5 morning SGT). Guide: $1.38B ±$50M, EPS $0.47 ±$0.04.
Feb 2027
Q3 FY27 earnings
Date not yet announced; Q3 reports have come in early February.
Mar 31, 2027
FY27 ends
Full-year results usually follow in early May.
Sources
- Arm Investor Relations — quarterly releases, slides, transcripts
- Q1 FY27 Form 6-K (Jul 29, 2026)
- Q1 FY27 earnings call transcript
- Q1 FY27 slides summary
- Q4 FY26 and full-year results
- Q1 FY27 revenue mix analysis
- FTC probe coverage
- SEC EDGAR filings (CIK 1973239)
- Price history, technicals, analyst consensus: Stocklake and Financial Modeling Prep, as of Oct 9, 2026