ARM HOLDINGS PLC /UK financial statements

Income statement, balance sheet and cash flow statement for the last 5 fiscal years, taken from the XBRL data ARM HOLDINGS PLC /UK files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2022	FY2024	FY2024	FY2025	FY2026
Revenue	2,703	2,679	3,233	4,007	4,920
Cost of revenue	131	106	154	121	121
Gross profit	2,572	2,573	3,079	3,886	4,799
Research and development	995	1,133	1,979	2,071	2,776
Selling, general and administrative	897	762	983	984	1,115
Operating expenses	1,939	1,902	2,968	3,055	3,899
Operating income	633	671	111	831	900
Other non-operating income	10	3	11	10	132
Pre-tax income	786	671	212	720	1,157
Income tax	110	147	-94	-72	253
Income from continuing operations	676	524	306
Net income	549	524	306	792	904
EBITDA	818	841	273	1,014	1,149
EPS, basic	0.54	0.51	0.30	0.75	0.85
EPS, diluted	0.54	0.51	0.29	0.75	0.85
Shares, basic (weighted)	1,025	1,025	1,027	1,050	1,061
Shares, diluted (weighted)	1,025	1,028	1,044	1,063	1,068

Balance sheet

	FY2022	FY2024	FY2024	FY2025	FY2026
Cash and equivalents	1,004	1,554	1,923	2,085	2,751
Short-term investments		661	1,000	740	850
Receivables		999	781	1,107	1,300
Other current assets		169	157	256	358
Total current assets		3,537	4,197	4,830	6,236
Property, plant and equipment		185	215	354	772
Lease right-of-use assets		206	205	320	379
Goodwill		1,620	1,625	1,620	1,623
Intangible assets		138	152	151	230
Long-term investments		723	741	565	387
Other non-current assets		202	270	305	312
Total assets		6,866	7,927	8,932	10,703
Accounts payable		82	26	63	80
Accrued liabilities		589	298	140	154
Deferred revenue		293	198	209	294
Total current liabilities		1,363	1,505	929	1,040
Lease liabilities		193	194	316	393
Other non-current liabilities		38	61	79	161
Total liabilities		2,815	2,632	2,093	2,417
Paid-in capital		1,216	2,171	2,922	3,467
Retained earnings		2,457	2,751	3,543	4,447
Other comprehensive income		376	371	372	370
Shareholders' equity	3,548	4,051	5,295	6,839	8,286
Total equity	3,548	4,051	5,295	6,839	8,286
Total liabilities and equity		6,866	7,927	8,932	10,703
Shares outstanding		1,025	1,040	1,057	1,064

Cash flow statement

	FY2022	FY2024	FY2024	FY2025	FY2026
Net income	549	524	306	792	904
Depreciation and amortization	185	170	162	183	249
Stock-based compensation	26	79	1,037	820	1,052
Deferred income tax	-80	-34	-270	-218	15
Change in receivables	-219	125	218	-331	-201
Cash from operations	458	739	1,090	397	1,524
Capital expenditures	-34	-64	-92	-219	-545
Purchases of investments	-750	-1,111	-765	-680	-1,140
Cash from investing	-619	-138	-516	-35	-325
Cash from financing	-32	-42	-208	-202	-548
Exchange rate effect	-17	-9	3	2	15
Net change in cash	-210	550	369	162	666
Free cash flow	424	675	998	178	979
Interest paid	1	0	0
Income taxes paid	141	157	187	149	223

Key metrics

Worked out from the statements above. Latest values use fiscal 2026. Valuation uses the share price of $310.32 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	97.5%	Gross profit / revenue.
Operating margin	18.3%	Operating income / revenue.
EBITDA margin	23.4%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	23.5%	Pre-tax income / revenue.
Net margin	18.4%	Net income / revenue.
FCF margin	19.9%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	31.0%	Cash from operations / revenue.
Effective tax rate	21.9%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	12.0%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	9.2%	Net income / average total assets.
Return on invested capital (ROIC)	13.7%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	56.4%	Research and development expense / revenue.
SG&A / revenue	22.7%	Selling, general and administrative expense / revenue.
Stock-based pay / revenue	21.4%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	11.1%	Capital expenditures / revenue.
D&A / revenue	5.1%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	22.8%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	22.5%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit growth, 1y	23.5%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	23.1%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating income growth, 1y	8.3%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	10.3%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA growth, 1y	13.3%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	11.0%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income growth, 1y	14.1%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	19.9%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS growth, 1y	13.3%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	18.6%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow growth, 1y	283.9%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	27.3%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow growth, 1y	450.0%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	13.2%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value growth, 1y	21.2%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	26.9%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets growth, 1y	19.8%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	15.9%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Share count change, 1y	0.5%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	1.3%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	6.00x	Current assets / current liabilities.
Quick ratio	4.71x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	3.46x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	22.6%	Total liabilities / total assets.
Working capital	$5.20B	Current assets - current liabilities.
Goodwill and intangibles / assets	17.3%	(Goodwill + intangible assets) / total assets.
Tangible book value	$6.43B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.50x	Revenue / average total assets.
Fixed asset turnover	8.74x	Revenue / average property, plant and equipment.
Receivables turnover	4.09x	Revenue / average receivables.
Days sales outstanding	89 days	365 x average receivables / revenue.
Days payables	216 days	365 x average accounts payable / cost of revenue.
FCF conversion	108.3%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	35.8%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$0.85	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
EPS, basic	$0.85	Net income per basic share, as reported (split-adjusted).
Revenue per share	$4.61	Revenue / diluted weighted shares.
FCF per share	$0.92	Free cash flow / diluted weighted shares.
Operating cash flow per share	$1.43	Cash from operations / diluted weighted shares.
Book value per share	$7.79	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$6.05	Tangible book value / shares outstanding.
Cash per share	$3.38	(Cash + short-term investments) / shares outstanding.

Valuation

Metric	Value	How it is calculated
Market cap	$330.20B	Share price x shares outstanding.
Enterprise value	$326.60B	Market cap + total debt - cash - short-term investments.
P/E	365x	Market cap / net income. Only when net income is positive.
P/S	67.1x	Market cap / revenue.
P/B	39.9x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	51.3x	Market cap / tangible book value, when positive.
P/FCF	337x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	217x	Market cap / cash from operations, when positive.
EV/Sales	66.4x	Enterprise value / revenue.
EV/EBIT	363x	Enterprise value / operating income, when both are positive.
EV/EBITDA	284x	Enterprise value / EBITDA, when both are positive.
EV/FCF	334x	Enterprise value / free cash flow, when both are positive.
FCF yield	0.3%	Free cash flow / market cap.
Earnings yield	0.3%	Net income / market cap (the inverse of P/E).
PEG	19.7x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was ARM HOLDINGS PLC /UK's revenue in fiscal 2026?

ARM HOLDINGS PLC /UK reported revenue of $4.92B for fiscal 2026, 22.8% higher than the year before.

Was ARM HOLDINGS PLC /UK profitable in fiscal 2026?

Yes. Net income was $904.0M, a net margin of 18.4%.

How much free cash flow did ARM HOLDINGS PLC /UK generate in fiscal 2026?

Cash from operations of $1.52B minus capital expenditures of $545.0M left free cash flow of $979.0M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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