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

Key Points

• Arrow Electronics reported a strong quarter, with earnings of $5.22 per share beating estimates by $2.30 and revenue of $9.47 billion topping expectations by a wide margin. Revenue jumped 39% year over year from the same period last year.
• Management said the results were driven by broad-based recovery in Global Components and strong demand in Global ECS, especially for AI and data-center-related business. The company also highlighted improving margins and a stronger financial position, including lower debt and better working capital efficiency.
• Arrow raised its Q2 2026 guidance, projecting EPS of $4.32 to $4.52 and sales of $9.15 billion to $9.75 billion. While the outlook is upbeat, management noted some uncertainty from seasonal margin pressure, normalization in supply-chain services, and an ongoing CEO search.

Arrow Electronics (NYSE:ARW - Get Free Report) posted its earnings results on Thursday. The technology company reported $5.22 EPS for the quarter, beating the consensus estimate of $2.92 by $2.30, FiscalAI reports. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The firm had revenue of $9.47 billion for the quarter, compared to analysts' expectations of $8.39 billion. During the same period last year, the firm earned $1.80 EPS. The firm's revenue was up 39.0% compared to the same quarter last year. 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 Price Performance

Shares of ARW traded up $5.01 during trading hours on Friday, hitting $194.84. 951,759 shares of the company were exchanged, compared to its average volume of 754,857. The company has a market capitalization of $9.95 billion, a PE ratio of 13.94, a PEG ratio of 0.92 and a beta of 1.16. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.09. The firm has a fifty day simple moving average of $157.32 and a 200-day simple moving average of $133.68. Arrow Electronics has a one year low of $101.79 and a one year high of $199.47.

Analyst Upgrades and Downgrades

Several analysts recently commented on ARW shares. Raymond James Financial restated an "outperform" rating and issued a $220.00 target price on shares of Arrow Electronics in a research report on Friday. Zacks Research upgraded Arrow Electronics from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 9th. Wells Fargo & Company raised their target price on Arrow Electronics from $140.00 to $165.00 and gave the company an "underweight" rating in a research report on Friday. Weiss Ratings upgraded Arrow Electronics from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, February 26th. Finally, Wall Street Zen upgraded Arrow Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, February 7th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Arrow Electronics presently has a consensus rating of "Moderate Buy" and an average target price of $183.75.

Insiders Place Their Bets

In other news, SVP Carine Lamercie Jean-Claude sold 4,000 shares of the firm's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $156.65, for a total value of $626,600.00. Following the completion of the sale, the senior vice president owned 16,261 shares of the company's stock, valued at $2,547,285.65. This trade represents a 19.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Eric Nowak sold 12,699 shares of Arrow Electronics stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $157.09, for a total value of $1,994,885.91. Following the sale, the insider directly owned 43,509 shares of the company's stock, valued at approximately $6,834,828.81. The trade was a 22.59% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 19,199 shares of company stock worth $3,009,786. 0.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Arrow Electronics

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Sivia Capital Partners LLC acquired a new position in shares of Arrow Electronics during the 2nd quarter worth about $492,000. Mangrove Partners IM LLC acquired a new position in shares of Arrow Electronics during the 4th quarter worth about $204,000. Inspire Advisors LLC acquired a new position in shares of Arrow Electronics during the 4th quarter worth about $203,000. UMB Bank n.a. lifted its position in shares of Arrow Electronics by 14.2% during the 4th quarter. UMB Bank n.a. now owns 983 shares of the technology company's stock worth $108,000 after purchasing an additional 122 shares during the last quarter. Finally, Larson Financial Group LLC acquired a new position in shares of Arrow Electronics during the 3rd quarter worth about $48,000. Institutional investors and hedge funds own 99.34% of the company's stock.

Key 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.

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.

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