ARM HoldingsSTU:O9T -4.09%74 EBITDA Margin % is 34.30% as of Mar. 2026, which is 40% above its 10-year median of 24.42. GuruFocus rates STU:O9T with a GF Score™ of 74/100 and a GF Value™ of €155.79 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,021 Semiconductors companies, ARM Holdings ranks better than 74.05% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. ARM Holdings's EBITDA for the
three
months ended in Mar. 2026 was €442 Mil. ARM Holdings's Revenue for the
three
months ended in Mar. 2026 was €1,289 Mil. Therefore, ARM Holdings's EBITDA margin for the quarter that ended in Mar. 2026 was 34.30%.
ARM Holdings (STU:O9T) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
ARM Holdings EBITDA Margin % Related Terms
ARM Holdings EBITDA Margin % Historical Data
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The historical data trend for ARM Holdings's EBITDA Margin % 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.
STU:O9T vs TXN, MRVL, QCOM: EBITDA Margin % Comparison
For the Semiconductors subindustry, ARM Holdings's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's EBITDA Margin % falls into.
* 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 (STU:O9T) has a EBITDA Margin % of 34.30% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on ARM Holdings and its competitors. This is 40% above median its historical median of 24.42. Over the past decade, ARM Holdings' EBITDA Margin % has ranged from 8.63 to 32.00. According to the industry distribution chart, ARM Holdings ranks #265 out of 1021 companies in the Semiconductors industry, placing it in the top 26%.
Is ARM Holdings' EBITDA Margin % too high?
ARM Holdings' current EBITDA Margin % of 34.30% is 40% above median its 10-year median of 24.42. Over the past 10 years, this metric has ranged from a low of 8.63 to a high of 32.00. The Semiconductors industry median EBITDA Margin % is 10.54. ARM Holdings' value of 34.30% is 225.4% above this industry median. Based on the distribution chart, ARM Holdings ranks #265 out of 1021 companies in the Semiconductors industry, which is above the industry midpoint. Overall, ARM Holdings has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' EBITDA Margin % compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #265 out of 1021 companies for EBITDA Margin %. This puts ARM Holdings in the upper half of its industry. The industry median EBITDA Margin % is 10.54. ARM Holdings' value of 34.30% is 225.4% above this benchmark. Historically, ARM Holdings' own EBITDA Margin % has ranged from 8.63 to 32.00 over the past decade. While the company's 10-year median is 24.42 vs. the industry median of 10.54, ARM Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Semiconductors company?
The median EBITDA Margin % among Semiconductors companies is 10.54, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current EBITDA Margin % of 34.30% is 225.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median EBITDA Margin % is 10.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current EBITDA Margin % is 34.30%, which is 40% above median its own 10-year median of 24.42. 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 (STU:O9T) is currently considered Significantly Overvalued. The stock's GF Value™ is €155.79, compared to a current price of €293.00 — trading 88.1% above its estimated fair value. The current EBITDA Margin % is 34.30%, which is 40% above median its 10-year median of 24.42 and 225.4% above the Semiconductors industry median of 10.54. ARM Holdings' overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For ARM Holdings (STU:O9T), the current EBITDA Margin % is 34.30% 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 (STU:O9T) Overvalued in 2026?
Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued.
The current stock price of €293.00 is trading 88.1% above its estimated GF Value™ of €155.79.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for STU:O9T:
EBITDA Margin %: 34.30% (40% above median its 10-year median of 24.42)
GF Value™: €155.79 vs. price of €293.00 (88.1% above fair value)
Industry Position: 225.4% above the Semiconductors median (#265 of 1021)
No single metric tells the full story. See the STU:O9T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
74GF Score
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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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