Arrow Electronics (NYSE:ARW) Announces Quarterly Earnings Results

Arrow Electronics (NYSE:ARW) issued its quarterly earnings results on Thursday. The technology company reported $4.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.55 by $0.84, Zacks reports. The company had revenue of $8.75 billion for the quarter, compared to analyst estimates of $8.16 billion. Arrow Electronics had a net margin of 1.62% and a return on equity of 8.19%. The business’s revenue for the quarter was up 20.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.97 earnings per share. Arrow Electronics updated its Q1 2026 guidance to 2.130-2.330 EPS.

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

• Arrow reported a strong fourth quarter with revenue up 20% year?over?year and non?GAAP EPS up 48% (Q4), and full?year revenue of $30.9 billion (up 10%), beating expectations.
• The company is shifting mix toward higher?margin offerings—value?added services rose to roughly 30% of operating income (from <20% historically) and ECS billings are ~1/3 recurring with ~75% software/services, supporting margin expansion.
• Leading operational indicators improved: book?to?bill is above parity, backlog has grown for four consecutive quarters, and reported lead times began modestly extending, signaling a gradual cyclical recovery.
• Working capital increased with net working capital up ~$180 million to $7.4 billion and inventory at $5.1 billion; full?year operating cash flow remained weak ($64 million), which could pressure liquidity and cash returns if trends persist.
• Management guided Q1 sales of $7.95–$8.55 billion (midpoint ~+21% YoY) and non?GAAP EPS of $2.70–$2.90, indicating the company expects the momentum to continue into 2026.

Arrow Electronics Stock Up 8.6%

ARW traded up $12.11 on Friday, reaching $153.21. The company’s stock had a trading volume of 1,404,120 shares, compared to its average volume of 633,402. The company has a market capitalization of $7.89 billion, a price-to-earnings ratio of 16.93, a P/E/G ratio of 1.08 and a beta of 1.04. Arrow Electronics has a fifty-two week low of $86.50 and a fifty-two week high of $153.09. The company has a quick ratio of 1.14, a current ratio of 1.46 and a debt-to-equity ratio of 0.48. The stock has a 50 day moving average of $116.69 and a two-hundred day moving average of $118.76.

Arrow Electronics News Summary

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

• Positive Sentiment: Q4 results beat estimates — EPS $4.39 vs. consensus ~$3.55 and revenue $8.75B (+20.1% YoY), signaling stronger-than-expected demand. Arrow Electronics Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: Management highlighted record ECS growth and an expanding value?added services mix, and outlined a 21% Q1 sales growth target — a signal that higher?margin services are driving momentum. Arrow outlines 21% Q1 sales growth target with expanding value-added services mix
• Positive Sentiment: Profitability improved sharply year-over-year (gross profit, operating profit and net income growth), supporting the view that revenue growth is translating into better margins. Arrow Electronics (ARW) Releases Q4 2025 Earnings
• Neutral Sentiment: Investors had access to the earnings call transcript, slide deck and detailed commentary — useful for digging into segment trends and seasonality (management emphasized execution and improving indicators). Arrow Electronics Inc (ARW) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Q1 2026 EPS guidance came in at $2.13–$2.33, well below the prior street consensus (~$3.56), which introduces near-term earnings risk and explains some caution among analysts. Arrow Electronics Reports Fourth-Quarter and Full-Year 2025 Results
• Negative Sentiment: Operating cash flow declined (~38.8% YoY) and total liabilities increased materially, which traders may view as a balance-sheet/cash-cycle caution despite higher cash balances. Arrow Electronics (ARW) Releases Q4 2025 Earnings

Wall Street Analysts Forecast Growth

ARW has been the topic of several recent research reports. Wells Fargo & Company cut their target price on shares of Arrow Electronics from $98.00 to $94.00 and set an “underweight” rating on the stock in a research note on Friday, October 31st. Truist Financial lifted their target price on Arrow Electronics from $120.00 to $148.00 and gave the company a “hold” rating in a report on Friday. Zacks Research cut Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 14th. Finally, Wall Street Zen cut Arrow Electronics from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. Three analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Arrow Electronics presently has an average rating of “Reduce” and an average price target of $117.33.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. AQR Capital Management LLC lifted its position in Arrow Electronics by 37.7% in the third quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company’s stock valued at $384,818,000 after acquiring an additional 871,585 shares during the last quarter. Sei Investments Co. boosted its position in shares of Arrow Electronics by 4.3% in the 3rd quarter. Sei Investments Co. now owns 814,794 shares of the technology company’s stock valued at $98,591,000 after purchasing an additional 33,481 shares during the period. UBS Group AG grew its stake in Arrow Electronics by 18.6% during the 3rd quarter. UBS Group AG now owns 413,519 shares of the technology company’s stock worth $50,036,000 after buying an additional 64,976 shares during the last quarter. Invesco Ltd. increased its position in Arrow Electronics by 8.8% during the third quarter. Invesco Ltd. now owns 273,606 shares of the technology company’s stock worth $33,106,000 after buying an additional 22,129 shares during the period. Finally, Bragg Financial Advisors Inc lifted its stake in Arrow Electronics by 1.2% in the second quarter. Bragg Financial Advisors Inc now owns 244,475 shares of the technology company’s stock valued at $31,153,000 after buying an additional 2,830 shares during the last quarter. Institutional investors and hedge funds own 99.34% of the company’s stock.

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.