What is Arm Holdings plc American Depositary Shares's Shariah compliance score?

Arm Holdings plc American Depositary Shares (ARM) has a Shariah compliance score of 88/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Arm Holdings plc American Depositary Shares pass AAOIFI screening?

Arm Holdings plc American Depositary Shares (ARM) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (ARM: 0.1%), (3) interest-bearing deposits below 30% (ARM: 0.9%), and (4) prohibited income below 5% (ARM: 2.3%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Arm Holdings plc American Depositary Shares stock?

Arm Holdings plc American Depositary Shares (ARM) has a non-permissible income ratio of 2.26%. Muslim investors should purify this percentage of any dividends received and capital gains realized from ARM shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Arm Holdings plc American Depositary Shares for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Arm Holdings plc American Depositary Shares (ARM) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about ARM's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is Arm Holdings plc American Depositary Shares (ARM) halal? Halal. Based on AAOIFI screening, Arm Holdings plc American Depositary Shares passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 88/100 (Grade: A).

ARM: Is Arm Holdings plc American Depositary Shares Halal?

Halal

Arm Holdings plc American Depositary Shares

NASDAQTechnologyGB

$418.88

-12.84%

AvoidBorderlineClean

Purify ~2.3% of income

About Arm Holdings plc American Depositary Shares

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.

Sector: Technology · Industry: Semiconductors

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Is ARM Holdings (ARM) Stock Halal? Shariah Compliance Analysis

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 15, 2026

Very Good

Strong compliance across all metrics

88Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap0.1% / 30.0%

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 15, 2026Fiscal: FY 2026Source: FMP

Purify Your ARM Dividends

2.3% non-compliant income

ARM has 2.3% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

445.7B

Price

$418.88

Sector

Technology

Industry

Semiconductors

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Frequently Asked Questions

Is Arm Holdings plc American Depositary Shares (ARM) halal to invest in?

Based on AAOIFI Standard 21 screening, Arm Holdings plc American Depositary Shares (ARM) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Arm Holdings plc American Depositary Shares get a A compliance rating?

Arm Holdings plc American Depositary Shares (ARM) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.1% (limit 30%); interest-bearing deposits of 0.9% (limit 30%); prohibited income of 2.26% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Arm Holdings plc American Depositary Shares's Shariah verdict?

Arm Holdings plc American Depositary Shares's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Arm Holdings plc American Depositary Shares re-screened for Shariah compliance?

Arm Holdings plc American Depositary Shares (ARM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 15, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.