$ARM

ARM HOLDINGS PLC /UK

CIK:0001973239|SEC Filings

Consolidated Income Statements - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Mar. 31, 2024
Revenue	$ 4,920	$ 4,007	$ 3,233
Cost of sales	(121)	(121)	(154)
Gross profit (loss)	4,799	3,886	3,079
Research and development	(2,776)	(2,071)	(1,979)
Selling, general and administrative	(1,115)	(984)	(983)
Disposal, restructuring and other operating expenses, net	(8)	0	(6)
Total operating expenses	(3,899)	(3,055)	(2,968)
Operating income (loss)	900	831	111
Income (loss) from equity investments, net	14	(237)	(20)
Interest income, net	111	116	110
Other non-operating income (loss), net	132	10	11
Income (loss) before income taxes	1,157	720	212
Income tax benefit (expense)	(253)	72	94
Net income (loss)	$ 904	$ 792	$ 306
Net income (loss) per share attributable to ordinary shareholders
Basic (in USD per share)	$ 0.85	$ 0.75	$ 0.30
Diluted (in USD per share)	$ 0.85	$ 0.75	$ 0.29
Weighted average ordinary shares outstanding
Basic (in shares)	1,061	1,050	1,027
Diluted (in shares)	1,068	1,063	1,044
Nonrelated Party
Revenue	$ 3,421	$ 3,184	$ 2,509
Related Party
Revenue	$ 1,499	$ 823	$ 724

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Mar. 31, 2024
Cash flows provided by (used for) operating activities:
Net income (loss)	$ 904	$ 792	$ 306
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	249	183	162
Deferred income taxes	15	(218)	(273)
(Income) loss from equity investments, net	(14)	237	20
Share-based compensation cost	1,052	820	1,037
Operating lease expense	59	40	35
Gain on business divestiture	(131)	0	0
Other non-cash operating activities, net	(8)	8	(2)
Changes in assets and liabilities:
Accounts receivable, net (including receivables from related parties)	(201)	(331)	218
Contract assets, net (including contract assets from related parties)	(309)	(412)	(307)
Prepaid expenses and other assets	(117)	(140)	(61)
Accrued compensation and benefits	24	(152)	(292)
Contract liabilities (including contract liabilities from related parties)	135	(4)	(190)
Tax liabilities	(11)	(6)	(30)
Operating lease liabilities	(44)	(39)	(28)
Other liabilities (including payables to related parties)	(79)	(381)	495
Net cash provided by (used for) operating activities	1,524	397	1,090
Cash flows provided by (used for) investing activities
Purchases of short-term investments	(1,140)	(680)	(765)
Proceeds from maturity of short-term investments	1,030	940	425
Purchases of equity investments	(11)	(57)	(32)
Purchases of intangible assets	(30)	(20)	(51)
Proceeds from business divestiture	127	0	0
Proceeds from settlement of loans, including convertible loans	56	0	0
Proceeds from sale or liquidation of equity investments	205	0	0
Purchases of property and equipment	(545)	(219)	(92)
Other investing activities, net, including investments in convertible loans	(17)	1	(1)
Net cash provided by (used for) investing activities	(325)	(35)	(516)
Cash flows provided by (used for) financing activities
Payments of intangible asset obligations	(67)	(59)	(40)
Proceeds from Employee Stock Purchase Plan	74	0	0
Other financing activities, net	(26)	(23)	(10)
Payments of withholding tax on vested shares	(529)	(120)	(158)
Net cash provided by (used for) financing activities	(548)	(202)	(208)
Effect of foreign exchange rate changes on cash and cash equivalents	15	2	3
Net increase (decrease) in cash and cash equivalents	666	162	369
Cash and cash equivalents at the beginning of the period	2,085	1,923	1,554
Cash and cash equivalents at the end of the period	2,751	2,085	1,923
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	(223)	(149)	(187)
Non-cash investing and financing activities:
Non-cash additions in property and equipment	29	27	2
Non-cash additions in finance lease right-of-use assets	56	33	13
Non-cash additions in intangible assets	131	51	53
Non-cash additions in operating lease right-of-use assets	98	146	27
Non-cash additions in operating lease liabilities	107	149	27
Non-cash additions to equity investments from conversion of certain receivables	8	5	9
Non-cash distributions to shareholders	0	0	12
Non-cash withholding tax on vested shares	64	8	55
Non-cash reclassification of share-based compensation costs	$ 0	$ 0	$ 343

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2026	Mar. 31, 2025
Current assets:
Cash and cash equivalents	$ 2,751.0	$ 2,085.0
Short-term investments	850.0	740.0
Accounts receivable, net (including receivables from related parties of $270 and $279 as of March 31, 2026 and 2025, respectively)	1,300.0	1,107.0
Contract assets (including contract assets from related parties of $646 and $152 as of March 31, 2026 and 2025, respectively)	977.0	642.0
Prepaid expenses and other current assets	358.0	256.0
Total current assets	6,236.0	4,830.0
Non-current assets:
Property and equipment, net	772.0	354.0
Operating lease right-of-use assets	379.0	320.0
Finance lease right-of-use assets	69.0	40.0
Equity investments (including investments held under fair value option of $148 and $300 as of March 31, 2026 and 2025, respectively)	387.0	565.0
Goodwill	1,623.2	1,620.0
Intangible assets, net	230.0	151.0
Deferred tax assets	375.0	401.0
Non-current portion of contract assets	320.0	346.0
Other non-current assets	312.0	305.0
Total non-current assets	4,467.0	4,102.0
Total assets	10,703.0	8,932.0
Current liabilities:
Accrued compensation and benefits	154.0	140.0
Tax liabilities	106.0	124.0
Contract liabilities (including contract liabilities from related parties of $36 and $81 as of March 31, 2026 and 2025, respectively)	294.0	209.0
Operating lease liabilities	39.0	30.0
Other current liabilities (including payables to related parties of $20 and $11 as of March 31, 2026 and 2025, respectively)	447.0	426.0
Total current liabilities	1,040.0	929.0
Non-current liabilities:
Non-current portion of accrued compensation	32.0	26.0
Deferred tax liabilities	39.0	41.0
Non-current portion of contract liabilities (including non-current portion of contract liabilities from related parties of $23 and $24 as of March 31, 2026 and 2025, respectively)	752.0	702.0
Non-current portion of operating lease liabilities	393.0	316.0
Other non-current liabilities	161.0	79.0
Total non-current liabilities	1,377.0	1,164.0
Total liabilities	2,417.0	2,093.0
Commitments and contingencies (Note 18)
Shareholders’ equity:
Ordinary shares, $0.001 par value; 1,097 shares authorized and 1,064 shares issued and outstanding as of March 31, 2026; and 1,088 shares authorized and 1,057 issued and outstanding as of March 31, 2025	2.0	2.0
Additional paid-in capital	3,467.0	2,922.0
Accumulated other comprehensive income (loss)	370.0	372.0
Retained earnings	4,447.0	3,543.0
Total shareholders’ equity	8,286.0	6,839.0
Total liabilities and shareholders’ equity	$ 10,703.0	$ 8,932.0