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: 0.2%), (3) interest-bearing deposits below 30% (ARM: 1.2%), 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).

ARM: Is Arm Holdings plc American Depositary Shares Halal?

Arm Holdings plc American Depositary Shares

NASDAQTechnologyGB

$267.19

+2.79%

Market Cap: 284.3B

Compliance Status

Halal

Screened on Jul 14, 2026 · AAOIFI Standard 21

Very Good

88Score

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).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

0.2% of 30.0% limit

What this means for you

You can own ARM

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purify 2.3% of your income from ARM

That is about $2.30 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About Arm Holdings plc American Depositary Shares

Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services. Its technology underpins a wide spectrum of industries, including the automotive sector, advanced computing infrastructure, consumer electronics, and the burgeoning Internet of Things (IoT) landscape. Established in 1990, Arm Holdings plc maintains its corporate headquarters in Cambridge, United Kingdom. With a significant global footprint, Arm conducts operations across the United States, the People's Republic of China, Taiwan, South Korea, and numerous other international regions. Currently, Arm Holdings plc functions as a subsidiary entity of Kronos II LLC.

Sector: Technology · Industry: Semiconductors

Read Full Analysis

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

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 14, 2026

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.

Fiscal: FY 2026Data source: FMP

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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 0.2% (limit 30%); interest-bearing deposits of 1.2% (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: Jul 14, 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.