Arrow Electronics (NYSE:ARW) Announces Quarterly Earnings Results

Arrow Electronics (NYSE:ARW) announced its earnings results on Thursday. The technology company reported $5.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.92 by $2.30, FiscalAI reports. The business had revenue of $9.47 billion for the quarter, compared to analysts’ expectations of $8.39 billion. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The business’s revenue for the quarter was up 39.0% on a year-over-year basis. During the same quarter last year, the firm earned $1.80 EPS. Arrow Electronics updated its Q2 2026 guidance to 4.32-4.520 EPS.

Here are the key takeaways from Arrow Electronics’ conference call:

• Arrow reported a strong Q1 beat with $9.5B revenue (+39% YoY), operating margin of 4.2% (+160 bps) and non?GAAP EPS of $5.22 (+190% YoY), driven by unit?volume growth, P&L leverage and value?added services.
• The Global Components recovery is broad?based and unit?volume driven—book?to?bill is >1 in all regions, backlog is building into Q3/Q4, and IP&E revenue exceeded $1B, supporting sustained margin expansion.
• Global ECS showed strong AI/data?center demand and billings growth, but Q1 benefited from a one?time boost (four extra shipping days worth several hundred million in billings) and included a charge on an underperforming multi?year contract, so some results are non?recurring.
• Financial position improved—gross debt fell ~$619M to $2.5B, networking capital declined ~$490M, and ROIC/return on working capital rose materially, while inventory rose ~$640M largely for margin?accretive data?center programs.
• Q2 guidance expects continued growth (sales $9.15–9.75B; non?GAAP EPS $4.32–4.52) but notes Asia seasonal lower margins, normalization of supply?chain services profitability, upcoming comp increases and an ongoing CEO search, introducing some execution and timing uncertainty.

Arrow Electronics Stock Up 2.6%

Shares of Arrow Electronics stock traded up $5.01 during trading on Friday, reaching $194.84. The company’s stock had a trading volume of 951,759 shares, compared to its average volume of 754,857. The company has a quick ratio of 1.09, a current ratio of 1.24 and a debt-to-equity ratio of 0.35. The company has a market cap of $9.95 billion, a price-to-earnings ratio of 13.94, a P/E/G ratio of 0.92 and a beta of 1.16. Arrow Electronics has a 1-year low of $101.79 and a 1-year high of $199.47. The company has a 50-day simple moving average of $157.32 and a two-hundred day simple moving average of $133.68.

Insiders Place Their Bets

In other news, insider Richard John Marano sold 2,500 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $155.32, for a total value of $388,300.00. Following the completion of the sale, the insider owned 24,096 shares of the company’s stock, valued at $3,742,590.72. This trade represents a 9.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO William F. Austen acquired 3,960 shares of the stock in a transaction dated Thursday, February 19th. The stock was acquired at an average cost of $151.87 per share, with a total value of $601,405.20. Following the transaction, the chief executive officer directly owned 44,722 shares in the company, valued at approximately $6,791,930.14. This represents a 9.71% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 19,199 shares of company stock worth $3,009,786 over the last quarter. Company insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Arrow Electronics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its stake in Arrow Electronics by 37.7% in the 3rd quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company’s stock worth $384,818,000 after acquiring an additional 871,585 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Arrow Electronics by 0.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,995,615 shares of the technology company’s stock worth $330,068,000 after acquiring an additional 16,570 shares during the last quarter. FIL Ltd raised its stake in Arrow Electronics by 33.8% in the 4th quarter. FIL Ltd now owns 1,231,833 shares of the technology company’s stock worth $135,723,000 after acquiring an additional 310,936 shares during the last quarter. Sei Investments Co. raised its stake in Arrow Electronics by 4.3% in the 3rd quarter. Sei Investments Co. now owns 814,794 shares of the technology company’s stock worth $98,591,000 after acquiring an additional 33,481 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Arrow Electronics by 1.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 528,776 shares of the technology company’s stock worth $58,261,000 after acquiring an additional 7,588 shares during the last quarter. Hedge funds and other institutional investors own 99.34% of the company’s stock.

Arrow Electronics News Summary

Here are the key news stories impacting Arrow Electronics this week:

• Positive Sentiment: Arrow Electronics reported first-quarter EPS of $5.22, well ahead of estimates, while revenue rose 39% year over year to $9.47 billion, topping Wall Street forecasts. Article Title
• Positive Sentiment: The company raised second-quarter guidance, with EPS projected at $4.32-$4.52 and revenue expected at $9.2 billion-$9.8 billion, both above consensus estimates. Article Title
• Positive Sentiment: Management commentary and earnings call coverage pointed to strong segment growth, higher margins, and continued data center demand tailwinds, reinforcing optimism about near-term fundamentals. Article Title
• Neutral Sentiment: Several follow-up articles simply recapped the quarter and conference call, with no major new catalyst beyond the earnings beat and guidance raise.

Wall Street Analyst Weigh In

Several analysts have issued reports on ARW shares. Raymond James Financial reaffirmed an “outperform” rating and set a $220.00 target price on shares of Arrow Electronics in a research report on Friday. Wells Fargo & Company increased their target price on Arrow Electronics from $140.00 to $165.00 and gave the company an “underweight” rating in a research report on Friday. Zacks Research raised Arrow Electronics from a “hold” rating to a “strong-buy” rating in a research report on Monday, February 9th. Weiss Ratings raised Arrow Electronics from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, February 26th. Finally, Truist Financial raised their price objective on Arrow Electronics from $183.00 to $240.00 and gave the stock a “buy” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $183.75.

About Arrow Electronics

Arrow Electronics (NYSE: ARW) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.

In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.