Arm Holdings Net Income vs. Operating Margin
| ARM Stock | 125.58 1.35 1.06% |
Net Income | First Reported 2010-12-31 | Previous Quarter 910.8 M | Current Value 563 M | Quarterly Volatility 161.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.74 | 0.85 |
|
| |||||
| Net Profit Margin | 0.2 | 0.23 |
|
| |||||
| Operating Profit Margin | 0.19 | 0.24 |
|
| |||||
| Pretax Profit Margin | 0.25 | 0.21 |
|
| |||||
| Return On Assets | 0.0792 | 0.1 |
|
| |||||
| Return On Equity | 0.12 | 0.13 |
|
|
For Arm Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arm Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arm Holdings plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arm Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arm Holdings plc over time as well as its relative position and ranking within its peers.
Check out Trending Equities. Will Semiconductors & Semiconductor Equipment sector continue expanding? Could Arm diversify its offerings? Factors like these will boost the valuation of Arm Holdings. If investors know Arm will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Arm Holdings data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.12) | Earnings Share 0.75 | Revenue Per Share | Quarterly Revenue Growth 0.263 | Return On Assets |
Understanding Arm Holdings plc requires distinguishing between market price and book value, where the latter reflects Arm's accounting equity. The concept of intrinsic value - what Arm Holdings' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Arm Holdings' price substantially above or below its fundamental value.
Understanding that Arm Holdings' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Arm Holdings represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, Arm Holdings' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
Arm Holdings plc Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Arm Holdings's current stock value. Our valuation model uses many indicators to compare Arm Holdings value to that of its competitors to determine the firm's financial worth. Arm Holdings plc is rated below average in net income category among its peers. It also is rated below average in operating margin category among its peers . The ratio of Net Income to Operating Margin for Arm Holdings plc is about 5,149,544,863 . At this time, Arm Holdings' Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Arm Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Arm Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Arm Holdings |
| = | 792 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Arm Holdings |
| = | 0.15 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Arm Operating Margin Comparison
Arm Holdings is currently under evaluation in operating margin category among its peers.
Arm Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Arm Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arm Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Arm Holdings' change in net profit over the period of time. It can combine multiple indicators of Arm Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 334.8 M | 303.6 M | |
| Net Interest Income | 133.4 M | 140.1 M | |
| Interest Income | 133.4 M | 140.1 M | |
| Operating Income | 951 M | 555.7 M | |
| Net Income From Continuing Ops | 910.8 M | 625.2 M | |
| Income Before Tax | 648 M | 493.8 M | |
| Total Other Income Expense Net | -96.3 M | -91.5 M | |
| Net Income Applicable To Common Shares | 602.6 M | 535.7 M | |
| Net Income | 910.8 M | 563 M | |
| Income Tax Expense | -64.8 M | -61.6 M | |
| Change To Netincome | 135.7 M | 142.5 M | |
| Net Income Per Share | 0.68 | 0.40 | |
| Income Quality | 0.58 | 0.55 | |
| Net Income Per E B T | 0.99 | 0.74 |
Arm Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Arm Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Arm Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Arm Holdings' important profitability drivers and their relationship over time.
Arm Holdings Earnings Estimation Breakdown
The calculation of Arm Holdings' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Arm Holdings is estimated to be 0.58 with the future projection ranging from a low of 0.4 to a high of 0.4725. Please be aware that this consensus of annual earnings estimates for Arm Holdings plc is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.40 Lowest | Expected EPS | 0.47 Highest |
Arm Holdings Earnings Projection Consensus
Suppose the current estimates of Arm Holdings' value are higher than the current market price of the Arm Holdings stock. In this case, investors may conclude that Arm Holdings is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Arm Holdings' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 41 | 91.39% | 0.43 | 0.58 | 0.75 |
Arm Holdings Earnings History
Earnings estimate consensus by Arm Holdings plc analysts from Wall Street is used by the market to judge Arm Holdings' stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we suggest analyzing not only Arm Holdings' upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.Arm Holdings Quarterly Gross Profit |
|
Arm Holdings Earnings per Share Projection vs Actual
Actual Earning per Share of Arm Holdings refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Arm Holdings plc predict the company's earnings will be in the future. The higher the earnings per share of Arm Holdings, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.Arm Holdings Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as Arm Holdings, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Arm Holdings should always be considered in relation to other companies to make a more educated investment decision.Arm Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact Arm Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2026-02-04 | 2025-12-31 | 0.41 | 0.43 | 0.02 | 4 | ||
2025-11-05 | 2025-09-30 | 0.33 | 0.39 | 0.06 | 18 | ||
2025-07-30 | 2025-06-30 | 0.35 | 0.35 | 0.0 | 0 | ||
2025-05-07 | 2025-03-31 | 0.52 | 0.55 | 0.03 | 5 | ||
2025-02-05 | 2024-12-31 | 0.34 | 0.39 | 0.05 | 14 | ||
2024-11-06 | 2024-09-30 | 0.26 | 0.3 | 0.04 | 15 | ||
2024-07-31 | 2024-06-30 | 0.17 | 0.21 | 0.04 | 23 | ||
2024-05-08 | 2024-03-31 | 0.31 | 0.36 | 0.05 | 16 | ||
2024-02-07 | 2023-12-31 | 0.25 | 0.29 | 0.04 | 16 | ||
2023-11-09 | 2023-09-30 | 0.27 | 0.36 | 0.09 | 33 |
Use Arm Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arm Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arm Holdings will appreciate offsetting losses from the drop in the long position's value.Arm Holdings Pair Trading
Arm Holdings plc Pair Trading Analysis
The ability to find closely correlated positions to Arm Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arm Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arm Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arm Holdings plc to buy it.
The correlation of Arm Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arm Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arm Holdings plc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arm Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Arm Holdings position
In addition to having Arm Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Outsourcing Thematic Idea Now
Outsourcing
Companies involved in providing outsourcing and staffing services to business across different domains. The Outsourcing theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Outsourcing Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Trending Equities. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
To fully project Arm Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arm Holdings plc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Arm Holdings' income statement, its balance sheet, and the statement of cash flows.