ARM HOLDINGS PLC /UK (ARM)

Technology · Semiconductors · Price $255.21
Updated: Aug 28, 2026
EPS (TTM)
$0.98
Diluted, Trailing 12 Months
P/E Ratio
260.4x
Price / EPS
Earnings Yield
0.38%
EPS / Price (Inverse P/E)
Growth Rate
47.05%
Log-Linear Regression (11Q)
PEG Ratio
5.63
P/E / Growth Rate

📈 EPS History (11 Quarters)

🧮 ARM EPS Calculation

EPS = Net Income ÷ Weighted Average Shares Outstanding
Net Income (TTM) $1.0B
÷
Diluted Shares Outstanding 1,066.0M
= Earnings Per Share (TTM) $0.98

What is Earnings Per Share (EPS)?

Earnings Per Share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. It's one of the most important metrics for comparing profitability across companies and is the foundation of the P/E ratio, the most widely used valuation metric in finance.

EPS = Net Income ÷ Weighted Average Shares Outstanding
Diluted EPS accounts for all potential shares from stock options, convertible bonds, etc.

Why EPS Matters for Investors

Comparable Across Companies

EPS normalizes profit to a per-share basis, making it easy to compare companies of different sizes. A $10B company and a $100B company can be compared fairly.

Drives Stock Prices

Over the long term, stock prices follow earnings. EPS growth is the primary driver of share price appreciation for most stocks.

P/E Ratio Foundation

The P/E ratio (Price/EPS) is the most common valuation metric. A P/E of 20x means investors pay $20 for every $1 of annual earnings.

Earnings Yield

Earnings Yield (EPS/Price) is the inverse of P/E. Warren Buffett prefers this format because it can be directly compared to bond yields.

How Zyberno Calculates Growth Rate

Zyberno uses log-linear regression on 11 quarters of historical EPS data to calculate the growth rate. This statistical method provides a more reliable trend than simple year-over-year comparisons, which can be distorted by one-time charges or seasonal variations.

EPS vs Cash Flow Metrics

Owner Earnings: N/A →

Buffett's preferred metric focuses on actual cash generation. Unlike EPS, it excludes non-cash charges and accounting adjustments.

Free Cash Flow: $979.0M →

The cash remaining after capital expenditures. EPS can be positive while FCF is negative if the company is investing heavily.

Understanding P/E and PEG Ratios

ARM's current P/E ratio is 260.4x, meaning investors pay $260.42 for every $1 of annual earnings. A P/E above 30 suggests investors expect significant future growth.

The PEG ratio (P/E divided by growth rate) helps determine if a stock is fairly valued for its growth. ARM's PEG is 5.63. A PEG above 2.0 suggests the stock may be expensive relative to its growth rate.

Summary: ARM Earnings Per Share

ARM HOLDINGS PLC /UK (ARM) earned $0.98 in diluted EPS over the trailing twelve months. EPS grew at 47.05% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses. P/E ratio: 260.4x, earnings yield: 0.38%. For complete financial analysis, view the full ARM stock report on Zyberno.

Frequently Asked Questions

What is ARM's current EPS?

ARM HOLDINGS PLC /UK (ARM) earned $0.98 in diluted EPS over the trailing twelve months. EPS grew at 47.05% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses. P/E ratio: 260.4x, earnings yield: 0.38%.

Is ARM's EPS growing?

ARM HOLDINGS PLC /UK (ARM) earned $0.98 in diluted EPS over the trailing twelve months. EPS grew at 47.05% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses. P/E ratio: 260.4x, earnings yield: 0.38%.

What is ARM's P/E ratio?

ARM's P/E ratio is 260.4x, meaning investors pay $260.42 for every $1 of annual earnings. The inverse (Earnings Yield) is 0.38%.

What's the difference between EPS and Free Cash Flow?

EPS is accounting profit divided by shares, while Free Cash Flow is actual cash remaining after capital expenditures. For ARM, EPS is $0.98 compared to FCF of $979.0M.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
🛡️
Margin of Safety
Valuation Gap
🎯
Expected Return
Projected Annual
Click any metric for full methodology and detailed analysis

📊 Full ARM Stock Report

See ARM's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 ARM Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 ARM Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 ARM Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 ARM Earnings Surprise (SUE)

See whether ARM is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 ARM Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 ARM Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 ARM Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 ARM Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

View Full ARM Report Find More Quality Stocks
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