Arrow Electronics (NYSE:ARW) Posts Earnings Results, Beats Expectations By $2.30 EPS

Arrow Electronics (NYSE:ARW) issued its quarterly earnings results on Thursday. The technology company reported $5.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.92 by $2.30, FiscalAI reports. The business had revenue of $9.47 billion during the quarter, compared to analyst estimates of $8.39 billion. Arrow Electronics had a net margin of 2.17% and a return on equity of 11.40%. The business’s revenue was up 39.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.80 earnings per share. 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 Performance

Shares of Arrow Electronics stock traded up $5.01 during trading on Friday, hitting $194.84. 951,759 shares of the stock were exchanged, compared to its average volume of 754,857. The stock’s fifty day moving average is $157.32 and its 200 day moving average is $133.68. The stock has a market cap of $9.95 billion, a PE ratio of 13.94, a P/E/G ratio of 0.92 and a beta of 1.16. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.09 and a current ratio of 1.24. Arrow Electronics has a 12 month low of $101.79 and a 12 month high of $199.47.

More Arrow Electronics News

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.

Analyst Ratings Changes

A number of analysts recently issued reports on ARW shares. Wall Street Zen upgraded shares of Arrow Electronics from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Zacks Research raised shares of Arrow Electronics from a “hold” rating to a “strong-buy” rating in a report on Monday, February 9th. Truist Financial lifted their price objective on shares of Arrow Electronics from $183.00 to $240.00 and gave the stock a “buy” rating in a report on Thursday. Raymond James Financial reaffirmed an “outperform” rating and issued a $220.00 price objective on shares of Arrow Electronics in a report on Friday. Finally, Weiss Ratings raised shares of Arrow Electronics from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $183.75.

Insider Activity

In other news, SVP Carine Lamercie Jean-Claude sold 4,000 shares of the company’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $156.65, for a total transaction of $626,600.00. Following the completion of the transaction, the senior vice president owned 16,261 shares in the company, valued at approximately $2,547,285.65. This represents a 19.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO William F. Austen purchased 3,960 shares of the stock in a transaction dated Thursday, February 19th. The shares were purchased at an average price 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 of the company’s stock, valued at approximately $6,791,930.14. The trade was a 9.71% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 19,199 shares of company stock worth $3,009,786 over the last ninety days. Insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Arrow Electronics

Several institutional investors have recently bought and sold shares of ARW. Transamerica Financial Advisors LLC acquired a new stake in Arrow Electronics in the fourth quarter worth about $27,000. Northwestern Mutual Wealth Management Co. lifted its holdings in Arrow Electronics by 112.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the technology company’s stock worth $27,000 after purchasing an additional 131 shares during the period. Advisory Services Network LLC acquired a new stake in Arrow Electronics in the third quarter worth about $31,000. Quarry LP acquired a new stake in Arrow Electronics in the third quarter worth about $33,000. Finally, Geneos Wealth Management Inc. lifted its holdings in Arrow Electronics by 68.1% in the first quarter. Geneos Wealth Management Inc. now owns 353 shares of the technology company’s stock worth $37,000 after purchasing an additional 143 shares during the period. Institutional investors and hedge funds own 99.34% of the company’s stock.

Arrow Electronics Company Profile

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.