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ARM Holdings's gross profit for the
three
months ended in Mar. 2026 was $1,458 Mil. ARM Holdings's gross profit for the trailing twelve months (TTM) ended in Mar. 2026 was $4,799 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. ARM Holdings's gross profit for the
three
months ended in Mar. 2026 was $1,458 Mil. ARM Holdings's Revenue for the
three
months ended in Mar. 2026 was $1,490 Mil. Therefore, ARM Holdings's Gross Margin % for the quarter that ended in Mar. 2026 was 97.85%.
ARM Holdings had a gross margin of 97.85% for the quarter that ended in Mar. 2026 => Durable competitive advantage
During the past 6 years, the highestGross Margin % of ARM Holdings was 97.54%. The lowest was 92.85%. And the median was 95.64%.
ARM Holdings (NAS:ARM) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
ARM Holdings had a gross margin of 97.85% for the quarter that ended in Mar. 2026 => Durable competitive advantage
ARM Holdings Gross Profit Related Terms
ARM Holdings Gross Profit Historical Data
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The historical data trend for ARM Holdings's Gross Profit 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 Gross Profit, along with its competitors' market caps and Gross Profit 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 Gross Profit vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Gross Profit distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Gross Profit falls into.
Gross Profit 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 $4,799 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
ARM Holdings (ARM) has a Gross Profit of $4,799 Mil as of Mar. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on ARM Holdings and its competitors.
Is ARM Holdings' Gross Profit too high?
ARM Holdings' current Gross Profit is $4,799 Mil. Overall, ARM Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' Gross Profit compare to TXN and MRVL?
ARM Holdings' Gross Profit of $4,799 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 Gross Profit for a Semiconductors company?
A good Gross Profit depends on the Semiconductors industry context. However, Gross Profit 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 Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on ARM Holdings and its competitors. ARM Holdings's current Gross Profit is $4,799 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 $179.76, compared to a current price of $265.68 — trading 47.8% above its estimated fair value. The current Gross Profit is $4,799 Mil. ARM Holdings' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For ARM Holdings (ARM), the current Gross Profit is $4,799 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 $265.68 is trading 47.8% above its estimated GF Value™ of $179.76.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Gross Profit: $4,799 Mil
GF Value™: $179.76 vs. price of $265.68 (47.8% 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.
69GF Score
Get the complete analysis for ARM
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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