Retained earnings is the accumulated portion of net income that is not distributed to shareholders. ARM Holdings's retained earnings for the quarter that ended in Mar. 2026 was $4,447 Mil.
ARM Holdings's quarterly retained earnings
increased
from Sep. 2025 ($3,911 Mil) to Dec. 2025 ($4,134 Mil) and
increased
from Dec. 2025 ($4,134 Mil) to Mar. 2026 ($4,447 Mil).
ARM Holdings's annual retained earnings
increased
from Mar. 2024 ($2,751 Mil) to Mar. 2025 ($3,543 Mil) and
increased
from Mar. 2025 ($3,543 Mil) to Mar. 2026 ($4,447 Mil).
ARM Holdings (NAS:ARM) Retained Earnings Explanation
Historically profitable companies sometimes have negative retained earnings. This is because they have cumulatively paid out more to shareholders than they reported in profits.
For example, in 2011, Microsoft had negative retained earnings. This does not mean the company lost more money than it made over the years. It just means it paid out more money than it earned.
If a company has negative retained earnings, investors should check the 10-year financial results. They should not assume that negative retained earnings prove a company has generally lost money in the past.
Of course, many companies with negative retained earnings have indeed lost money in the past.
Retained Earnings: Warren Buffett's Secret.
One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.
If the company loses more than it has accumulated, retained earnings is negative.
If a company isn't adding to its retained earnings, it isn't growing its net worth.
Rate of growth of retained earnings is good indicator whether it's benefiting from a competitive advantage.
Microsoft is negative because it chose to buyback stock and pay dividends.
The more earnings retained, the faster it grows and increases growth rate for future earnings.
ARM Holdings Retained Earnings Historical Data
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The historical data trend for ARM Holdings's Retained Earnings 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.
Retained Earnings is the accumulated portion of net income that is not distributed to shareholders. Because the net income was not distributed to shareholders, shareholders' equity is increased by the same amount.
Of course, if a company loses, it is called retained losses, or accumulated losses.
ARM Holdings (ARM) has a Retained Earnings of $4,447 Mil as of Mar. 2026. Retained earnings is the amount of net income not issued to shareholders. View historical data on ARM Holdings and its competitors.
Is ARM Holdings' Retained Earnings too high?
ARM Holdings' current Retained Earnings is $4,447 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' Retained Earnings compare to TXN and MRVL?
ARM Holdings' Retained Earnings of $4,447 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 Retained Earnings for a Semiconductors company?
A good Retained Earnings depends on the Semiconductors industry context. However, Retained Earnings 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 Retained Earnings mean?
A high Retained Earnings can signal that a stock is expensive relative to its fundamentals. Retained earnings is the amount of net income not issued to shareholders. View historical data on ARM Holdings and its competitors. ARM Holdings's current Retained Earnings is $4,447 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 $178.26, compared to a current price of $337.47 — trading 89.3% above its estimated fair value. The current Retained Earnings is $4,447 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 Retained Earnings calculated?
Retained Earnings is calculated from a company's financial statements. For ARM Holdings (ARM), the current Retained Earnings is $4,447 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 $337.47 is trading 89.3% above its estimated GF Value™ of $178.26.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Retained Earnings: $4,447 Mil
GF Value™: $178.26 vs. price of $337.47 (89.3% 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
Get the complete analysis for ARM
Retained Earnings is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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