Arm Holdings plc (ARM)
Arm designs the clever, power-efficient blueprints for the processors that power almost every smartphone and billions of other electronic devices worldwide.
Is Arm Holdings plc a good stock for a UK beginner?
The honest version: Arm designs the clever, power-efficient blueprints for the processors that power almost every smartphone and billions of other electronic devices worldwide.
Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Arm becomes the standard architecture for all AI-driven hardware
Technological shifts making current designs less relevant
What does Arm Holdings plc do?
Arm doesn't actually manufacture chips; instead, it creates the fundamental architecture and licenses these designs to companies like Apple and Samsung. Every time a chip based on their design is sold, they collect a fee, and that lucrative model is where the profits come from. Much depends on how successfully they expand beyond mobile phones into the high-growth world of artificial intelligence and data centres.
On our factor screen it looks strongest on growth and quality, and weakest on value.
- !Pays no dividend - the whole return rides on the share price
- ✓Growing - revenue up about 22% over the year
- ✓Very profitable - turns about 20% of sales into profit
- !High P/E of 245 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- Quality screens high (78/100)
- Growth screens high (82/100)
- Dominant position in the global smartphone market
- Extremely high profit margins due to the licensing model
- Essential technology for modern computing and AI
- Value screens low (8/100)
- Income screens low (16/100)
- Heavy reliance on a small number of large customers
- Geopolitical tensions affecting global chip supply chains
- Potential for competitors to develop cheaper or more efficient alternatives
What do Arm Holdings plc's numbers mean?
How much money does Arm Holdings plc make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Arm Holdings plc pay a dividend?
No - Arm Holdings plc doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.
When does Arm Holdings plc report earnings, and how did recent quarters go?
Arm Holdings plc is next scheduled to report on about 2026-11-04 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-29 | $0.40 | $0.45 | Beat +11% |
| 2026-05-05 | $0.58 | $0.60 | Beat +4% |
| 2026-02-04 | $0.41 | $0.43 | Beat +5% |
| 2025-11-05 | $0.33 | $0.39 | Beat +18% |
| 2025-07-30 | $0.35 | $0.35 | In line |
| 2025-05-07 | $0.52 | $0.55 | Beat +5% |
Across the last 6 quarters here, Arm Holdings plc came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Arm Holdings plc?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Arm Holdings plc?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Dominant position in the global smartphone market
- Extremely high profit margins due to the licensing model
- Essential technology for modern computing and AI
- Very high valuation compared to current earnings
- No dividend payments for income-focused investors
- High share price volatility
- Heavy reliance on a small number of large customers
- Geopolitical tensions affecting global chip supply chains
- Potential for competitors to develop cheaper or more efficient alternatives
The write-up's own warning lights — if these start happening, the case above changes.
- A significant drop in the adoption of Arm-based chips in data centres
- A major legal loss regarding their intellectual property rights
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.