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 87/100 (Grade: A, Very Good). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Arm Holdings plc American Depositary Shares pass AAOIFI screening?

Arm Holdings plc American Depositary Shares (ARM) passes AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. ARM's debt-to-market-cap is 0.2%.

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

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Arm Holdings plc American Depositary Shares (ARM) 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 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

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Compliance Status

Halal

Screened on Oct 19, 2026 · AAOIFI Standard 21

Very Good

87Score

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 87/100 (Grade: A).

Quote this verdict

HalalScreener rates Arm Holdings plc American Depositary Shares (ARM) Halal, 87/100, grade A under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/ARM

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

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

You can own ARM

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

Purification amount is Pro

We have screened ARM's prohibited income, but the exact share you would need to purify is part of Pro.

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ARM: Is Arm Holdings plc American Depositary Shares Halal?

Arm Holdings plc American Depositary Shares

NASDAQTechnologyGB

$227.80

-6.94%

Market Cap: 243.3B

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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

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

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 19, 2026

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Screened according to AAOIFI Standard 21

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: Q1 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%). 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: Oct 19, 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.