Professional
Added to YB: 2026-02-13
Pitch date: 2026-02-08
ARM [neutral]
Arm Holdings plc
+103.57%
current return
Author Info
Sustainable Growth Advisers is a global equities firm focused on companies with predictable, above-average long-term earnings and free cash-flow growth. Sign up for the newsletter.
Company Info
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services.
Market Cap
$282.8B
Pitch Price
$120.25
Price Target
N/A
Dividend
N/A
EV/EBITDA
220.76
P/E
270.28
EV/Sales
54.19
Sector
Semiconductors and Semiconductor Equipment
Category
growth
SGA U.S. Large Cap Growth Portfolio Holding: Arm Holdings plc
ARM (holding update): Strong Q2 with revenue +34%, profit +43%; royalty +21% on data center growth & smartphone CSS; license +56% (17% ex-SoftBank fees). Q3 guide: sales +25%, profit +20%. Concerns: elevated R&D from SoftBank design service pressuring margins; SoftBank borrowing vs ARM stake for OpenAI raises forced selling risk. Confident in growth; clarity on SoftBank chip project expected 2026. Maintained below-avg weight.
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