Arrow Electronics (NYSE:ARW) Announces Earnings Results

Arrow Electronics (NYSE:ARW) posted its earnings results on Thursday. The technology company reported $6.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.06 by $1.16, FiscalAI reports. Arrow Electronics had a net margin of 2.26% and a return on equity of 13.41%. The firm had revenue of $10.72 billion during the quarter, compared to analyst estimates of $10.07 billion. During the same period in the previous year, the business posted $2.41 EPS. Arrow Electronics’s revenue was up 39.0% on a year-over-year basis. Arrow Electronics updated its Q4 2026 guidance to 7.000-7.200 EPS.

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

• Arrow reported record Q3 revenue of $10.7 billion, up 39% year over year, and record non-GAAP EPS of $6.22, up 158%. Operating margin expanded 130 basis points to 4.1%, reflecting operating leverage and strong volume.
• Management cited broad-based strength in Global Components, with book-to-bill well above parity, backlog extending into mid-2027, and continued growth across regions and end markets. Higher memory prices boosted Q3 revenue and profit dollars, though Q4 growth is expected to be driven mainly by unit volume.
• Q4 revenue guidance is $11.55 billion to $12.15 billion, up 36% year over year at the midpoint, with non-GAAP EPS of $7.00 to $7.20. ECS demand and backlog conversion were strong, and management expects Q4 billings-based ECS margins to be roughly flat year over year.
• Working capital rose about $900 million sequentially, including a $1.4 billion inventory increase; operating cash flow was negative $441 million in Q3. Management said roughly $600 million of the inventory build supported Arrow Intelligence Solutions orders expected to ship in coming quarters, but the build weighed on near-term cash flow.
• Greater hardware mix is expected to keep ECS’s Q4 reported operating margin below its historical level of about 6%, although management said billings-based margins remain healthy. The favorable Q3 tax settlement also contributed to EPS exceeding guidance and is not presented as a recurring driver.

Arrow Electronics Stock Performance

Shares of ARW opened at $176.91 on Friday. The firm has a 50-day moving average price of $218.45 and a 200 day moving average price of $191.98. The firm has a market capitalization of $9.01 billion, a PE ratio of 11.30, a P/E/G ratio of 0.30 and a beta of 1.20. The company has a quick ratio of 1.01, a current ratio of 1.22 and a debt-to-equity ratio of 0.29. Arrow Electronics has a 52-week low of $101.79 and a 52-week high of $249.43.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Wall Street Zen downgraded Arrow Electronics from a “strong-buy” rating to a “buy” rating in a research report on Saturday, September 19th. Raymond James Financial reissued an “outperform” rating and issued a $250.00 price objective on shares of Arrow Electronics in a report on Friday, August 7th. Zacks Research cut Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 26th. Weiss Ratings raised Arrow Electronics from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Finally, Truist Financial cut their target price on Arrow Electronics from $260.00 to $250.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $233.25.

Trending Headlines about Arrow Electronics

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

• Positive Sentiment: Third-quarter EPS was $6.22, above the roughly $5.06 consensus, while revenue of $10.72 billion topped estimates of about $10.07 billion and rose 39% year over year. Arrow cited broad-based demand in Global Components and strength across both major businesses. Arrow Electronics Reports Record Quarterly Revenue and EPS
• Positive Sentiment: Fourth-quarter guidance is notably above expectations: EPS of $7.00–$7.20 versus consensus of $5.80, and revenue of $11.6–$12.2 billion versus about $10.5 billion. The stronger outlook may reinforce investor confidence in continued momentum. Arrow Electronics Q3 Profit Jumps, Issues Q4 Outlook

Insider Buying and Selling

In other Arrow Electronics news, SVP Carine Jean-Claude sold 1,000 shares of the business’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $209.85, for a total transaction of $209,850.00. Following the sale, the senior vice president directly owned 11,626 shares in the company, valued at approximately $2,439,716.10. The trade was a 7.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.80% of the company’s stock.

About Arrow Electronics

Arrow Electronics, Inc is a global distributor of electronic components and enterprise computing solutions. The company connects manufacturers of technology products with customers, including original equipment manufacturers, contract manufacturers, commercial enterprises and government organizations.

Arrow’s components business distributes products such as semiconductors, embedded systems, passive and electromechanical components, and related engineering services. Its enterprise computing solutions business provides technology products and services involving data center, cloud, security, networking and software solutions.