ARM
Arm Holdings plc
Is ARM Halal?
Semiconductor IP licensing — halal royalty model.
What You Should Know
Licenses CPU architecture for 99% of smartphones. Its March 31, 2026 Form 20-F reports $10,703 million of assets, $491 million of conservative lease debt, $2,751 million of cash, $13.2 million of debt securities, $1,369 million of receivables and $4,920 million of fiscal-year revenue. Debt/assets is 4.59%, liquidity/assets is 25.83% and receivables-plus-cash/assets is 38.49%; the examined MSCI receivables screen fails while FTSE and Malaysia financial ratios pass. Royalty model remains permissible (similar to ijarah), with AI, data-center and defense end-use review required.
⚠️ Concerns
- •IPO premium pricing
- •MSCI receivables-plus-cash screen fails
- •AI and defense end uses require review
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2026-03-31; calculated 2026-07-15.
491 / 10,703
2,764.2 / 10,703
4,120 / 10,703
111 / 4,920
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 4.59%, liquidity/assets is 25.83%, receivables-plus-cash/assets is 38.49% and disclosed interest income is 2.26%; examined FTSE financial ratios pass, but activity allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 38.49%, above the examined MSCI 33.33% limit; debt/assets is 4.59% and liquidity/assets is 25.83%.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 4.59% and liquidity/assets is 25.83%, below the examined Malaysia limits; activity allocation remains incomplete.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Arm licenses CPU architecture and related semiconductor IP. Software and technology licensing is generally permissible, while defense, surveillance, AI infrastructure and customer end-use allocation require qualitative review.
Limitation: The filing does not provide a universal prohibited-revenue numerator across licensees, end markets and government or defense uses.
Purification
Arm discloses $111 million of net interest income, but no scholar-approved purification percentage is asserted for the operating business.
Inputs, assumptions and primary sources
- Amounts are USD millions from Arm's March 31, 2026 Form 20-F.
- Conservative debt includes $432 million of operating-lease liabilities and $59 million of finance-lease liabilities; no other borrowing balance is tagged.
- Cash and cash equivalents are $2,751 million, noncurrent available-for-sale debt securities are $13.2 million and receivables combine $1,300 million net current accounts receivable with $69 million other receivables.
- Fiscal-year revenue is $4,920 million and disclosed net interest income is $111 million, or 2.26% of revenue.
- Semiconductor architecture licensing is retained as generally permissible, while defense, surveillance, data-center and customer end-use allocation require qualified review.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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