Fool - Investing News·9h ago
These 4 Stocks Are Tied to the Smartphone in Your PocketWhich of these four businesses is still earning more money from your phone?
Arm's asset-light licensing model delivers gross margins near 97% in 2027Q2, and revenue growth of 27.1% year over year, though decelerating from 39.1% in 2025Q1, suggests the growth engine is maturing.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 27.1% year over year to $1.4B in 2027Q2 with gross margin of 97.1%, but operating margin of 13.9% and quarterly swings from 7.6% to 33.0% suggest heavy R&D spending limits operating leverage.
Arm's compute platforms are integral to advanced AI applications, with Armv9 adoption and AI-specific IP momentum driving demand.
Q3 FY2026 revenue surged 26% to $1.242B, with royalty revenue up 27% to $737M, highlighting robust financial performance.
Arm's high-margin licensing business and secular growth remain intact, supporting long-term profitability.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $0.52+8.3% vs $0.48 | $1.4B+4.7% vs $1.4B |
Q3 2026 Jul 29, 2026 | $0.45+12.5% vs $0.40 | $1.3B+2.1% vs $1.3B |
Q2 2026 May 6, 2026 | $0.60+3.4% vs $0.58 | $1.5B+1.1% vs $1.5B |
Q1 2026 Feb 4, 2026 | $0.43+4.9% vs $0.41 | $1.2B+1.2% vs $1.2B |
Which of these four businesses is still earning more money from your phone?
Investors were disappointed with Arm's royalty revenue growth in its fiscal second quarter. The stock has a lot of upside potential from its new Arm AGI CPU.
Inflation, politics and AI concerns are all posing big challenges to investors right now, but Andrew Rocco believes the market will push past these hurdles in the coming months. Learn why the recent selloffs could be setting up the next leg higher.
A Democratic sweep of Congress and many governorships in the midterm elections Tuesday prompted market fears of a data center slowdown. Stocks sold off sharply Thursday, with major indexes posting their worst day since April 2025, before recovering some of those losses Friday.
Benchmark ARM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Arm Holdings plc American Depositary Shares (ARM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $174.62 | $185.8B | 205.44 | 22.79% | 18.37% | 11.95% | — | |
| $27.10 | $754.99M | -61.59 | 2.49% | -9.48% | -3.42% | — | |
| $450.46 | $86.25B | 56.03 | 15.12% | 11.43% | 3.57% | — | |
| $319.92 | $88.24B | 78.80 | 14.12% | 22.51% | 21.43% | — | |
| $165.41 | $173.68B | 33.02 | 13.66% | 21.01% | 37.33% | 2.08% | |
| $56.28 | $283.88B | -955.52 | -0.47% | -20.09% | -9.9% | — |
Arm Holdings plc American Depositary Shares (ARM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Arm Holdings plc American Depositary Shares (ARM) stock FAQ — growth, dividends, profitability & financials explained
Arm Holdings plc American Depositary Shares (ARM) reported $5.16B in revenue over the trailing twelve months. Revenue was $4.92B in fiscal year 2026. That is 82% more than the $2.70B of fiscal year 2022.
Arm Holdings plc American Depositary Shares (ARM) grew revenue by 22.8% in fiscal year 2026, compared with the prior fiscal year.
Yes. Arm Holdings plc American Depositary Shares (ARM) earned $1.04B in net income over the trailing twelve months (a 20.2% net margin).
Arm Holdings plc American Depositary Shares (ARM) had a return on equity (ROE) of 12.0% in fiscal year 2026. That is in line with the market's typical 10-15%.
Arm Holdings plc American Depositary Shares (ARM) generated $1.47B in free cash flow over the trailing twelve months.
