ARM HoldingsARM +0.40%62 FCF Margin % is 11.41% as of Mar. 2026, which is 47% below its 10-year median of 21.70. 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. Among 1,023 Semiconductors companies, ARM Holdings ranks better than 87.78% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. ARM Holdings's Free Cash Flow for the
three
months ended in Mar. 2026 was $170 Mil. ARM Holdings's Revenue for the
three
months ended in Mar. 2026 was $1,490 Mil. Therefore, ARM Holdings's FCF Margin % for the quarter that ended in Mar. 2026 was 11.41%.
The historical rank and industry rank for ARM Holdings's FCF Margin % or its related term are showing as below:
ARM'
s FCF Margin % Range Over the Past 10 Years
Min: 3.94 Med: 21.7 Max: 52.69
Current: 19.29
During the past 6 years, the highest FCF Margin % of ARM Holdings was 52.69%. The lowest was 3.94%. And the median was 21.70%.
ARM's FCF Margin % is ranked better than 87.78% of 1023
companies
in the Semiconductors industry
Industry Median: -0.76
vs ARM: 19.29
ARM Holdings FCF Margin % Related Terms
ARM Holdings FCF Margin % Historical Data
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The historical data trend for ARM Holdings's FCF 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.
For the Semiconductors subindustry, ARM Holdings's FCF Margin %, along with its competitors' market caps and FCF 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 FCF Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's FCF Margin % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's FCF 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 (ARM) has a FCF Margin % of 11.41% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on ARM Holdings and its competitors. This is 47% below median its historical median of 21.70. Over the past decade, ARM Holdings' FCF Margin % has ranged from 3.94 to 52.69. According to the industry distribution chart, ARM Holdings ranks #125 out of 1023 companies in the Semiconductors industry, placing it in the top 12.2%.
Is ARM Holdings' FCF Margin % too high?
ARM Holdings' current FCF Margin % of 11.41% is 47% below median its 10-year median of 21.70. Over the past 10 years, this metric has ranged from a low of 3.94 to a high of 52.69. Based on the distribution chart, ARM Holdings ranks #125 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. 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' FCF Margin % compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #125 out of 1023 companies for FCF Margin %. This places ARM Holdings in the top 12% of its industry — outperforming the majority of peers. Historically, ARM Holdings' own FCF Margin % has ranged from 3.94 to 52.69 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Semiconductors company?
A good FCF Margin % depends on the Semiconductors industry context. However, FCF Margin % 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on ARM Holdings and its competitors. ARM Holdings's current FCF Margin % is 11.41%, which is 47% below median its own 10-year median of 21.70. 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 $360.50 — trading 102.9% above its estimated fair value. The current FCF Margin % is 11.41%, which is 47% below median its 10-year median of 21.70. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For ARM Holdings (ARM), the current FCF Margin % is 11.41% 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 $360.50 is trading 102.9% above its estimated GF Value™ of $177.63.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
FCF Margin %: 11.41% (47% below median its 10-year median of 21.70)
GF Value™: $177.63 vs. price of $360.50 (102.9% above fair value)
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 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
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