ARM
Arm Holdings plc American Depositary Shares
ARM offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
WDC
Western Digital Corporation
WDC has the edge over ARM overall, supported by stronger fundamentals and stronger modeled upside.
ARM Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Strong | |
| Strong |
ARM's revenue, profitability, cash flow and balance sheet are all currently healthy.
WDC Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Strong | |
| Strong | |
| Strong |
WDC's revenue, profitability, cash flow and balance sheet are all currently strong.
ARM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 167x | $147 | -27% |
| Fair | 224x | $197 | -1.4% |
| Current | 227x | $200 | — |
| Expensive | 361x | $317 | +59% |
Historical ranges are pointers, not guarantees.
ARM's PE is in its fair range at 227x.
WDC PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 9.9x | $255 | -18% |
| Forward | 11x | $311 | — |
| Current | 12x | $311 | — |
| Fair | 19x | $487 | +56% |
| Expensive | 63x | $1,618 | +420% |
Historical ranges are pointers, not guarantees.
WDC has the edge over ARM in the historical PE scenario, which offers more potential upside but is not a forecast.
ARM Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Strong growth | |
| Strong growth | |
| Improving | |
| Moderate | |
| Moderate |
Analysts expect strong earnings and revenue growth for ARM, with profitability improving.
WDC Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Moderate | |
| Moderate |
Analysts expect strong earnings and revenue growth for WDC, with profitability improving.
ARM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q3 2026 | $0.88 | +13% |
| Q2 2026 | $0.98 | +48% |
| Q1 2026 | $0.85 | +13% |
| Q4 2025 | $0.75 | -1.3% |
| Q3 2025 | $0.78 | +30% |
| Q1 2025 | $0.75 | +159% |
| Q4 2024 | $0.76 | +850% |
| Q3 2024 | $0.60 | +233% |
ARM earned $0.88 per share over the past year, up 13% from the year before.
WDC Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $28.81 | +12% |
| Q3 2026 | $25.84 | +276% |
| Q2 2026 | $24.28 | +371% |
| Q1 2026 | $16.75 | +268% |
| Q4 2025 | $9.97 | +187% |
| Q3 2025 | $6.87 | +655% |
| Q2 2025 | $5.15 | +$7.76 |
| Q1 2025 | $4.55 | +$9.61 |
| Q4 2024 | $3.47 | +$10.69 |
WDC has the edge over ARM on earnings, with more consistent year-over-year improvement.
ARM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.4B | +27% |
| Q2 2026 | $1.3B | +22% |
| Q1 2026 | $1.5B | +20% |
| Q4 2025 | $1.2B | +26% |
| Q3 2025 | $1.1B | +34% |
| Q2 2025 | $1.1B | +12% |
| Q1 2025 | $1.2B | +34% |
| Q4 2024 | $983M | +19% |
ARM has the edge over WDC on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 14% | -0.4 points |
| Q2 2026 | 7.1% | -3.8 points |
| Q1 2026 | 29% | -3.6 points |
| Q4 2025 | 15% | -2.9 points |
| Q3 2025 | 14% | +6.8 points |
| Q2 2025 | 11% | -8.5 points |
| Q1 2025 | 33% | +31 points |
| Q4 2024 | 18% | +1.5 points |
ARM's operating margin was 14% last quarter, about level with the same quarter a year ago.
WDC Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $4.4B | +55% |
| Q2 2026 | $3.7B | +44% |
| Q1 2026 | $3.3B | +45% |
| Q4 2025 | $3B | -30% |
| Q3 2025 | $2.8B | -31% |
| Q2 2025 | $2.6B | -31% |
| Q1 2025 | $2.3B | -34% |
| Q4 2024 | $4.3B | +41% |
WDC's revenue is growing: $4.4B last quarter, up 55% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 47% | +19 points |
| Q2 2026 | 42% | +16 points |
| Q1 2026 | 36% | +2.5 points |
| Q4 2025 | 30% | +10 points |
| Q3 2025 | 28% | +10 points |
| Q2 2025 | 26% | +20 points |
| Q1 2025 | 33% | +25 points |
| Q4 2024 | 20% | +27 points |
WDC has the edge over ARM on profitability, with a higher operating margin.
ARM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $135M | -69% |
| Q2 2026 | $705M | +296% |
| Q1 2026 | $186M | +1.1% |
| Q4 2025 | $186M | -48% |
| Q3 2025 | $429M | +$476M |
| Q2 2025 | $178M | +$497M |
| Q1 2025 | $184M | -72% |
| Q4 2024 | $360M | +25% |
ARM generated $1.2B in free cash flow over the past year, up 5.3% from the year before.
WDC Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $1.4B | +130% |
| Q2 2026 | $1.3B | +90% |
| Q1 2026 | $978M | +158% |
| Q4 2025 | $653M | +128% |
| Q3 2025 | $599M | +$661M |
| Q2 2025 | $675M | +170% |
| Q1 2025 | $379M | +$418M |
| Q4 2024 | $287M | +$529M |
WDC has the edge over ARM on cash flow, with more consistent year-over-year improvement.
ARM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.1% | +1M shares |
| 1 year | +0.9% | +10M shares |
| 3 years | +5.2% | +53.7M shares |
ARM has the edge over WDC on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q1 2023 | — |
| Q4 2022 | — |
| Q3 2022 | — |
| Q2 2022 | — |
WDC Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.3% | +1M shares |
| 1 year | +2.1% | +8M shares |
| 3 years | +19% | +61M shares |
| 5 years | +22% | +68M shares |
| Available history | +29% | +86M shares |
WDC has 384M diluted shares, up 2.1% from a year ago, despite $3B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $1B |
| Q2 2026 | $672M |
| Q1 2026 | $752M |
| Q4 2025 | $615M |
| Q3 2025 | $553M |
| Q2 2020 | — |
| Q1 2020 | — |
| Q4 2019 | — |
WDC spent $3B buying back its own shares over the past year.
ARM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q1 2023 | -1.6x | Net Cash |
ARM has more cash than debt.
WDC Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.1x | Net Cash |
| Q2 2026 | -0.1x | Net Cash |
| Q1 2026 | -0.1x | Net Cash |
| Q4 2025 | 0.8x | Very low |
| Q3 2025 | 0.8x | Very low |
| Q2 2025 | 0.8x | Very low |
| Q1 2025 | 1.3x | Healthy |
| Q4 2024 | 1.9x | Healthy |
WDC has more cash than debt.
ARM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 43.0 | Neutral |
| Stochastic | 11.0 | Oversold |
ARM's weekly RSI is 43 (neutral) and its Stochastic is 11 (oversold).
WDC Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 41.5 | Neutral |
| Stochastic | 11.2 | Oversold |
WDC's weekly RSI is 41 (neutral) and its Stochastic is 11 (oversold).
ARM PE vs Technology Sector
| Metric | ARM | Sector median | Relative |
|---|---|---|---|
| PE | 227x | 28x | 715% above |
| PE % | 51 | 23 | 28 pts above |
ARM is trading at 227x earnings, a 715% premium to the Technology sector's median of 28x.
WDC PE vs Technology Sector
| Metric | WDC | Sector median | Relative |
|---|---|---|---|
| PE | 12x | 28x | 57% below |
| PE % | 28 | 35 | 7 pts below |
WDC has the edge over ARM on valuation relative to its sector.
ARM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $237.8 | 16% below |
| 20 week MA | $257.3 | 22% below |
| 50 week MA | $213.9 | 6.6% below |
| 100 week MA | $176.5 | 13% above |
WDC has stronger trend alignment. ARM is above 1 of 4 weekly averages versus WDC above 2 of 5.
WDC Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $360.8 | 14% below |
| 20 week MA | $438.4 | 29% below |
| 50 week MA | $380.4 | 18% below |
| 100 week MA | $226.8 | 37% above |
| 200 week MA | $133.7 | 133% above |
WDC has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 133% above its 200-week average.
ARM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2023 | $60.8 | $75.2 | +24% |
| 2024 | $75.2 | $129.2 | +72% |
| 2025 | $129.2 | $110.3 | -15% |
| 2026 YTD | $110.3 | $199.8 | +81% |
ARM has the edge over WDC on returns for 2026, with the stronger performance.
WDC Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $47.0 | $37.7 | -20% |
| 2021 | $37.7 | $46.2 | +23% |
| 2022 | $46.2 | $23.1 | -50% |
| 2023 | $23.1 | $39.6 | +71% |
| 2024 | $39.6 | $45.9 | +16% |
| 2025 | $45.9 | $181.5 | +296% |
| 2026 YTD | $181.5 | $311.2 | +71% |
WDC's yearly returns have swung widely, from +296% in 2025 to −50% in 2022. It's up 71% so far in 2026.