Arrow Electronics (NYSE:ARW) Posts Quarterly Earnings Results, Beats Expectations By $1.00 EPS

Arrow Electronics (NYSE:ARW) released its earnings results on Thursday. The technology company reported $5.45 EPS for the quarter, topping the consensus estimate of $4.45 by $1.00, FiscalAI reports. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The business had revenue of $9.99 billion during the quarter, compared to analysts’ expectations of $9.67 billion. During the same quarter last year, the firm posted $2.43 earnings per share. The firm’s revenue was up 31.8% on a year-over-year basis. Arrow Electronics updated its Q3 2026 guidance to 4.830-5.030 EPS.

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

• Strong second-quarter results exceeded expectations, with revenue rising 32% year over year to $10 billion, operating margin expanding 120 basis points to 4%, and non-GAAP EPS increasing 124% to $5.45.
• Global Components remained broad-based and demand-driven, supported by AI and data center investment as well as aerospace and defense, industrial, and transportation markets. Book-to-bill ratios remained above one and backlog extended into the first half of 2027.
• Management expects continued momentum and operating leverage, guiding third-quarter revenue to $9.6 billion-$10.2 billion, or 28% year-over-year growth at the midpoint, while maintaining confidence in full-year ECS billings growth and strong component margins.
• ECS operating margin fell 100 basis points year over year after a $27 million charge tied to underperforming multi-year contracts; management expects additional, though smaller, charges in the second half while restructuring the partner relationship.
• The balance sheet strengthened, with gross debt down to $2.2 billion and adjusted leverage improving to 1.75 times. Arrow generated more than $1 billion of operating cash flow year to date and repurchased $43 million of shares during the quarter.

Arrow Electronics Price Performance

ARW opened at $222.89 on Friday. Arrow Electronics has a 1 year low of $101.79 and a 1 year high of $237.33. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.02. The company has a market capitalization of $11.40 billion, a price-to-earnings ratio of 15.94 and a beta of 1.20. The firm’s fifty day moving average price is $215.99 and its two-hundred day moving average price is $180.49.

Arrow Electronics declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the technology company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ARW. Zacks Research downgraded shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research report on Monday. Truist Financial lifted their price target on shares of Arrow Electronics from $240.00 to $260.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. Raymond James Financial reissued an “outperform” rating and set a $220.00 price objective on shares of Arrow Electronics in a research report on Friday, May 8th. Bank of America raised Arrow Electronics from an “underperform” rating to a “neutral” rating and boosted their target price for the company from $122.00 to $233.00 in a research report on Wednesday, May 13th. Finally, Wall Street Zen upgraded Arrow Electronics from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 25th. 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. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $222.00.

Insider Transactions at Arrow Electronics

In other news, insider Eric Nowak sold 3,473 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $210.99, for a total transaction of $732,768.27. Following the completion of the sale, the insider directly owned 48,835 shares of the company’s stock, valued at $10,303,696.65. This trade represents a 6.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $216.00, for a total transaction of $648,000.00. Following the completion of the transaction, the senior vice president directly owned 12,626 shares in the company, valued at $2,727,216. This trade represents a 19.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. grew its holdings in Arrow Electronics by 5.4% during the fourth quarter. Invesco Ltd. now owns 288,427 shares of the technology company’s stock valued at $31,779,000 after purchasing an additional 14,821 shares during the period. Corient Private Wealth LLC lifted its position in shares of Arrow Electronics by 18.2% during the 4th quarter. Corient Private Wealth LLC now owns 47,864 shares of the technology company’s stock valued at $5,274,000 after buying an additional 7,380 shares during the last quarter. Vident Advisory LLC grew its stake in shares of Arrow Electronics by 8.9% during the 4th quarter. Vident Advisory LLC now owns 9,333 shares of the technology company’s stock worth $1,028,000 after acquiring an additional 760 shares during the period. XTX Topco Ltd bought a new position in shares of Arrow Electronics during the 4th quarter worth $2,266,000. Finally, Voloridge Investment Management LLC purchased a new stake in Arrow Electronics in the 4th quarter worth about $8,466,000. 99.34% of the stock is owned by institutional investors.

Key Stories Impacting Arrow Electronics

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Arrow reported adjusted earnings of $5.45 per share, versus the $4.45 analyst consensus, while revenue reached $9.99 billion, ahead of the $9.67 billion estimate. EPS more than doubled from $2.43 a year earlier, and revenue increased 31.8% year over year. Arrow Electronics Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Third-quarter guidance was above Wall Street expectations. Arrow forecast EPS of $4.83 to $5.03, compared with consensus of $4.50, and revenue of $9.6 billion to $10.2 billion, versus an estimate of $9.5 billion. The outlook suggests management expects continued demand and profitability strength. Arrow Electronics Quarterly Earnings Report
• Positive Sentiment: Improved operating performance supports the investment case. The quarter included a 11.40% return on equity and a 2.17% net margin, while the earnings improvement indicates stronger execution compared with last year. Investors may view the results as evidence that Arrow is benefiting from favorable technology distribution trends. Key Metrics From Arrow Electronics Q2 Earnings
• Neutral Sentiment: Arrow appointed Deidra C. Merriwether as president and chief operating officer. The leadership change could support execution, although the articles provided no specific financial impact. Arrow Electronics Appoints Deidra C. Merriwether

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.