ARM (ARM Holdings) EBIT: $908 Mil (TTM As of Mar. 2026)


ARM ARM Holdings PLC ARM
62 GF Score
Price $347.77
GF Value $177.63
Valuation Significantly Overvalued
! 1 Warning Sign
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What is ARM Holdings EBIT?

ARM Holdings ARM -3.15% 62 EBIT is $908 Mil as of Mar. 2026. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $177.63 (Significantly Overvalued). The stock has 1 warning sign investors should review.

ARM Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $440 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $908 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ARM Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 17.83%. ARM Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 114.43%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. ARM Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 0.25%.

ARM Holdings  (NAS:ARM) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

ARM Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1760 * ( 1 - 34.93% )/( (6203 + 6645)/ 2 )
=1145.232/6424
=17.83 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10176 - 431 - ( 3542 - max(0, 1057 - 5736+3542))
=6203

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10703 - 457 - ( 3601 - max(0, 1040 - 6236+3601))
=6645

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

ARM Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1760/( ( (1189 + max(174, 0)) + (1220 + max(493, 0)) )/ 2 )
=1760/( ( 1363 + 1713 )/ 2 )
=1760/1538
=114.43 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(984 + 0 + 183) - (431 + 338 + 224)
=174

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1300 + 0 + 169) - (457 + 294 + 225)
=493

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

ARM Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=908/368301.748
=0.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ARM Holdings EBIT Related Terms

ARM Holdings EBIT Historical Data

* Premium members only.

The historical data trend for ARM Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ARM Holdings EBIT Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial 680.00 678.00 117.00 831.00 908.00

ARM Holdings Quarterly Data
Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 410.00 114.00 163.00 191.00 440.00

ARM vs TXN, QCOM, ADI: EBIT Comparison

For the Semiconductors subindustry, ARM Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ARM Holdings EV-to-EBIT vs Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where ARM Holdings's EV-to-EBIT falls into.


ARM
62GF Score
ARM Holdings PLC ARM
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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ARM Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $908 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $908 Mil mean?
ARM Holdings (ARM) has a EBIT of $908 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on ARM Holdings.
Is ARM Holdings' EBIT too high?
ARM Holdings' current EBIT is $908 Mil. Overall, ARM Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' EBIT compare to TXN and QCOM?
ARM Holdings' EBIT of $908 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Semiconductors company?
A good EBIT depends on the Semiconductors industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on ARM Holdings. ARM Holdings's current EBIT is $908 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Holdings stock overvalued right now?
Based on GuruFocus' analysis, ARM Holdings (ARM) is currently considered Significantly Overvalued. The stock's GF Value™ is $177.63, compared to a current price of $347.77 — trading 95.8% above its estimated fair value. The current EBIT is $908 Mil. ARM Holdings' overall GF Score™ is 62/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For ARM Holdings (ARM), the current EBIT is $908 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is ARM Holdings (ARM) Overvalued in 2026?

Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued. The current stock price of $347.77 is trading 95.8% above its estimated GF Value™ of $177.63. GuruFocus considers ARM Holdings to be Significantly Overvalued.

Key valuation signals for ARM:

  • EBIT: $908 Mil
  • GF Value™: $177.63 vs. price of $347.77 (95.8% above fair value)
  • GF Score™: 62/100 with 1 warning sign

No single metric tells the full story. See the ARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

ARM Holdings Business Description

Other Exchanges ARMN:MexicoO9T:Germany
Address 110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores. It also has high market share in other battery-powered devices like wearables, tablets, and sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped. In 2026, Arm announced the launch of its own CPU products on top of its existing royalty business.
62GF Score

Get the complete analysis for ARM

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$347.77
Price
$177.63
GF Value