ARM Holdings PLC Sponsored ADR
ARM Holdings PLC Sponsored ADR’s revenue for fiscal 2026 (year ended March 2026) was $4.9 billion, up 22.8% from fiscal 2025. In the quarter to June 2026, revenue grew 22.4%, EPS grew 108.3% and free cash flow grew 305.9%, each against the same quarter a year earlier. Member of the Nasdaq 100; revenue growth for three consecutive years.
Follow ARM
ARM Holdings PLC Sponsored ADR (ARM) Altman Z-score
ARM Holdings PLC Sponsored ADR's Altman Z-score for fiscal 2026 is 41.75, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 41.75 | 7.77 |
| FY2025 | 33.98 | 3.37 |
| FY2024 | 30.61 | — |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.49 | — | 0.58 | |
| Retained earnings / total assets | 0.42 | — | 0.58 | |
| EBIT / total assets | 0.08 | — | 0.28 | |
| Market value of equity / total liabilities | 66.41 | — | 39.84 | |
| Sales / total assets | 0.46 | — | 0.46 | |
| Altman Z-score | Safe zone | 41.75 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 8.70 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ARM ARM Holdings PLC Sponsored ADR | 41.7× |
| AMD Advanced Micro Devices, Inc. compare | 16.0× |
| MU Micron Technology, Inc. compare | 15.0× |
| TXN Texas Instruments Incorporated compare | 8.7× |
| QCOM QUALCOMM Incorporated compare | 6.5× |
| MRVL Marvell Technology, Inc. compare | 5.9× |
| ADI Analog Devices, Inc. compare | 5.7× |
| ASX ASE Technology Holding Co., Ltd. compare | 2.5× |
| INTC Intel Corporation compare | 1.9× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets