The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 6 | 317.8x | 20.8x | Bottom tier | |
Growth | 66 | -27.4% | 6.1% | Top tier | |
Quality | 84 | 12.7% | 6.6% | Top tier | |
Safety | 93 | — | 0.7x | Top tier | |
Capital Return | 46 | — | 2.02% | Around median | |
Momentum | 83 | 139.5% | 4.1% | Top tier | |
Sentiment | 47 | 21 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Arm Holdings plc American Depositary Shares (NASDAQ: ARM) is a global leader in microprocessor design and semiconductor intellectual property development. The company's business model relies on licensing its advanced engineering designs to manufacturing partners in exchange for upfront licensing fees, followed by ongoing royalty revenues for each shipped chip incorporating its technologies. Today, the company is expanding aggressively beyond smartphones to target artificial intelligence data centers, cloud computing, and autonomous vehicles, particularly through its innovative processors such as the Arm AGI CPU family dedicated to orchestrating and managing agentic AI workloads.
According to the latest quarterly financial data for the third quarter of 2026, the company achieved revenues of $1.2 billion, a gross profit of $1.2 billion, with a net income of $223.0 million, and earnings per share of $0.21. In addition, the fourth-quarter results for fiscal year 2026 released in the earnings call revealed record revenues of $1.49 billion (an increase of 20% year-over-year), driven by strong growth in licensing revenues of 29% to reach $819 million, and royalty revenues of 11% to reach $671 million, bringing total full-year fiscal revenues to $4.92 billion, representing a year-over-year growth of 23%.
Arm Holdings stock enjoys a positive analyst consensus recommending Buy, with an average price target of $234.44, with estimates ranging from a minimum of $130 to an optimistic maximum of $500. The stock currently trades below the analysts' average price target, giving it room for upside and price growth if the company can overcome supply chain constraints and meet growing demand. However, the stock faces some technical pressures and mixed valuations regarding appropriate entry levels in light of its massive market capitalization of $406.5 billion.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
Arm AGI CPUs are products launched at the Arm Everywhere event in March 2026, specifically designed to handle agentic AI workloads that require high processing capacity for task orchestration and memory management. These processors feature 136 cores and offer exceptional efficiency exceeding twice the performance per rack compared to traditional x86 processors. The company expects these processors to generate $15 billion in revenue by fiscal year 2031, making data centers Arm's largest business segment ever.
Although actual customer demand for Arm AGI CPUs has doubled to exceed $2 billion for 2027 and 2028, company management has maintained its conservative outlook at only $1 billion for now. This conservatism is due to the company's efforts to secure sufficient production capacity for silicon chips, memory, packaging, and testing equipment with manufacturing partners. Working teams are operating around the clock to secure these supplies, and the company expects to record its first production chip sales revenues in the fourth quarter of the current fiscal year.
SoftBank Group is the primary shareholder and most prominent business partner of Arm, and its shares witnessed a strong 20% jump on the Tokyo Stock Exchange in May 2026 driven by the AI boom. During the fourth quarter of fiscal year 2026, the technology licensing and design services agreement signed with SoftBank contributed $200 million to Arm's total licensing revenues, a figure similar to the previous quarter. This close financial interdependence demonstrates how SoftBank directly benefits from the expansion and development of Arm's technologies in global markets.
Automated analysis for informational purposes only — not investment advice.
Major global companies are adopting the Arm architecture to develop custom chips for data centers, with Google announcing at the Google Next event the replacement of x86 processors with custom Arm Axion processors to work alongside TPU 8t and TPU 8i units, achieving an 80% performance improvement. For its part, NVIDIA revealed at the GTC conference the Vera processor, built on the Arm architecture and dedicated to agentic AI, with the construction of an independent rack integrating 256 Vera processors. These adoptions strengthen Arm's market share, which is already close to 50% among major cloud providers for server chips based on Neoverse CSS.
According to the latest financial statements filed with the Securities and Exchange Commission (EDGAR) for the third quarter of 2026, Arm achieved quarterly revenues of $1.2 billion. The company's gross profit during this quarter reached $1.2 billion, reflecting the extremely high profit margins that characterize its design and licensing business. The company also recorded a net income of $223.0 million, translating to earnings per share of $0.21 for the third quarter, demonstrating the company's continued robust profitability.