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Arm Holdings
Nasdaq 100
$258.2B
Market Cap
178.0
P/E
2.67
PEG
14.8%
ROCE
12.0%
ROE
0.05
D/E
18.3%
OPM
-42.9%
% from 52W High
89
α RS
🔍 ARM is showing a high-conviction setup because it matches 3 of 37 tracked screener presets, RS Rating is 89, and an ECS of 55 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 3/37 · RS Rating 89 · ECS 55
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🌏 Global Investor Returns
Currency-adjusted total returns for ARM including FX impact
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📈 Price History
Ratio Health
Excellent
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Average
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By Category
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About

Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding ARM
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Manager Shares Value % of Fund Period
Stan Druckenmiller Duquesne Family Office 106.7K $16.1M 0.48% Mar 2026
Jim Simons Renaissance Technologies LLC 16.9K $2.6M 0.00% Mar 2026
Steve Cohen Point72 Asset Management 14.3K $2.2M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q1 2027
Revenue
$1.29B
+22% YoY
Operating Income (Non-GAAP)
$531M
Not disclosed
Operating Margin (Non-GAAP)
41%
+2.0pp YoY
Non-GAAP EPS
$0.45
+29% YoY
What Went Right
  • Record first-quarter revenue of $1.29B, up 22% YoY
  • Data center royalty revenue more than doubled YoY; Neoverse cumulative shipments surpassed 1.5B cores
  • Arm AGI CPU demand pipeline now exceeds $2B, with increased confidence in delivering over $1B
What to Watch
  • Smartphone end-market softness across all tiers due to higher memory prices, pressuring royalty growth
  • Full-year royalty growth now expected closer to high-teens vs prior ~20% due to smartphone weakness
  • Supply chain tightness (wafers, memory, substrates, test capacity) limits near-term AGI CPU upside
Management Guidance
  • Q2 FY27 revenue of $1.38B ± $50M, representing ~22% YoY growth
  • Q2 FY27 license and other revenue up ~30% YoY; royalty revenue up low-teens YoY
  • Q2 FY27 non-GAAP OpEx ~$780M and non-GAAP EPS of $0.47 ± $0.04
Investor Lens
The thesis is stronger after this call. Data center momentum is accelerating with Arm-based server deployments at hyperscalers, and the AGI CPU opportunity is pulling in more demand than expected at $2B+. Smartphone softness is a real headwind, but cloud AI overperformance is more than offsetting it so far. Supply chain constraints are the key limiting factor, but management grew more confident in securing additional capacity than 90 days ago.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG STRONG: Record Q1 revenue $1.29B, up 22% YoY
Revenue
Total revenue grew 22% YoY to $1.29B, a record first quarter. Royalty revenue rose 22% to $715M, led by data center royalties that more than doubled YoY, while licensing revenue grew 23% to $574M.
Profitability
Non-GAAP EPS was $0.45, up 29% YoY and above the high end of guidance. Non-GAAP operating income was $531M, delivering a non-GAAP operating margin of 41%.
Margins
Non-GAAP operating margin expanded 200 basis points YoY to 41%. Non-GAAP operating expenses were $733M, up 18% YoY but $27M below guidance due to timing of tool spending.
Balance Sheet
Free cash flow was $665M in the quarter and $1.4B over trailing twelve months. No debt or cash balance specifics were provided.
Key Risks
Management flagged weaker smartphone unit demand across all market tiers due to higher memory prices, potentially lowering full-year royalty growth to high teens. Supply chain constraints for AGI CPU remain a bottleneck, though capacity confidence has improved.
Outlook
Q2 FY27 revenue is guided to $1.38B ± $50M (~22% YoY) with non-GAAP EPS of $0.47 ± $0.04. Management expects license revenue to be up ~30% YoY and royalty revenue up low-teens YoY in Q2.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-07-29
Record Q1 revenue and EPS growth driven by strong AI demand and expanding cloud/data center adoption. AGI CPU demand exceeds $2B, with improved supply confidence. Despite smartphone market softness, cloud AI overperformance supports robust outlook.
Q4 2026 Q4 2026 2026-05-06
Record quarterly and annual revenue driven by strong licensing and royalty growth, especially in data center and AI workloads. Demand for AGI CPU doubled, with robust guidance and expanding ecosystem support. Long-term targets include $25B revenue and over $9 EPS by FY 2031.
Q3 2026 Q3 2026 2026-02-04
Record Q3 revenue and royalties were driven by strong AI and data center demand, with data center royalties more than doubling year-on-year. Guidance for Q4 remains robust, and long-term growth is supported by high-value licensing, increased R&D, and expanding AI opportunities.
Q2 2026 Q2 2026 2025-11-05
Record Q2 revenue grew 34% year-on-year, driven by strong royalty and licensing growth across all major markets. Data center and smartphone segments led performance, with continued aggressive R&D investment and a robust outlook for AI-driven demand.
Q1 2026 Q1 2026 2025-07-30
Q1 FY26 revenue reached $1.05B, up 25% in royalties year-over-year, with strong AI-driven demand across all segments. Neoverse CPUs are set to reach nearly 50% share at hyperscalers, and CSS royalty rates now exceed 10% of ASP. Guidance calls for continued growth and increased R&D investment.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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