Arrow Electronics (NYSE:ARW) Releases Earnings Results, Beats Expectations By $0.84 EPS

Arrow Electronics (NYSE:ARW) issued its quarterly earnings results on Thursday. The technology company reported $4.39 earnings per share for the quarter, beating the consensus estimate of $3.55 by $0.84, Zacks reports. The firm had revenue of $8.75 billion during the quarter, compared to the consensus estimate of $8.16 billion. Arrow Electronics had a return on equity of 9.15% and a net margin of 1.85%.The company’s revenue was up 20.1% on a year-over-year basis. During the same period last year, the company 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 Performance

Shares of ARW opened at $158.67 on Friday. The firm has a market capitalization of $8.17 billion, a P/E ratio of 14.50, a PEG ratio of 1.10 and a beta of 1.04. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.46 and a quick ratio of 1.14. Arrow Electronics has a one year low of $86.50 and a one year high of $160.63. The business has a fifty day moving average of $117.70 and a 200 day moving average of $118.95.

Analysts Set New Price Targets

A number of research firms have weighed in on ARW. Truist Financial raised their price objective on shares of Arrow Electronics from $120.00 to $148.00 and gave the company a “hold” rating in a research note on Friday. Zacks Research downgraded shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. Wall Street Zen upgraded shares of Arrow Electronics from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Wells Fargo & Company increased their target price on Arrow Electronics from $94.00 to $115.00 and gave the company an “underweight” rating in a research note on Friday. Three research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $124.33.

Arrow Electronics News Roundup

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

• Positive Sentiment: Q4 results materially beat expectations — Arrow reported $4.39 EPS vs. $3.55 consensus and $8.75B revenue (roughly +20% Y/Y), with gross profit and operating profit rising. That beat is a key driver of investor optimism. Zacks: Earnings Beat
• Positive Sentiment: Management flagged record growth in ECS and strong Global Components momentum — positive for margin mix and recurring service revenues, supporting longer‑term earnings power. Yahoo: Call Highlights
• Positive Sentiment: Company set an ambitious Q1 sales growth target (~21%) and emphasized expanding value‑added services, which investors may view as evidence of sustainable top‑line expansion. Seeking Alpha: Q1 Sales Target
• Neutral Sentiment: Truist raised its price target to $148 and kept a “hold” rating — a modestly improved view but the PT remains below the current market price, so limited incremental upside from this note. Benzinga: Truist PT
• Neutral Sentiment: Earnings call/transcripts are available for deeper read on management commentary and segment dynamics (useful for investors but not an immediate price mover on its own). MSN: Call Transcript
• Negative Sentiment: Q1 FY2026 EPS guidance (2.130–2.330) was well below consensus (~3.56), creating near‑term earnings visibility risk and tempering the beat’s impact on forward valuation. Company Press Release / Slides
• Negative Sentiment: Wells Fargo raised its price target to $115 but reiterated an “underweight” rating — the PT implies significant downside versus the current market price, which could pressure sentiment among more conservative investors. Benzinga: Wells Fargo Note
• Negative Sentiment: Some balance‑sheet caution: operating cash flow declined and total liabilities increased materially Y/Y (reported by third‑party summaries), which could concern investors focused on cash conversion and leverage. QuiverQuant: Cash Flow & Liabilities

Institutional Investors Weigh In On Arrow Electronics

A number of large investors have recently made changes to their positions in the company. Sivia Capital Partners LLC bought a new position in Arrow Electronics in the 2nd quarter worth $492,000. FORA Capital LLC purchased a new stake in Arrow Electronics in the third quarter worth about $294,000. Rehmann Capital Advisory Group bought a new position in shares of Arrow Electronics in the third quarter worth about $211,000. Private Advisor Group LLC lifted its position in shares of Arrow Electronics by 28.2% during the 3rd quarter. Private Advisor Group LLC now owns 2,608 shares of the technology company’s stock valued at $316,000 after buying an additional 574 shares in the last quarter. Finally, State of Wyoming bought a new position in shares of Arrow Electronics during the 2nd quarter valued at approximately $292,000. 99.34% of the stock is currently owned by institutional investors.

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.