Zacks Research Issues Optimistic Estimate for ARW Earnings

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for Arrow Electronics to $5.01 from $3.25, while forecasting FY2026 EPS of $20.41. Despite the higher estimates, Zacks maintained a “Hold” rating.
• Arrow Electronics recently reported quarterly EPS of $5.45, beating consensus by $1.00, while revenue rose 31.8% year over year to $9.99 billion. The company issued Q3 2026 EPS guidance of $4.83–$5.03.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $233.25 price target versus the stock’s recent price near $203.70. The board also authorized a $1 billion share-repurchase program, covering up to 9.7% of outstanding shares.

Arrow Electronics, Inc. (NYSE:ARW - Free Report) - Equities research analysts at Zacks Research increased their Q3 2026 earnings per share estimates for shares of Arrow Electronics in a report released on Thursday, August 27th. Zacks Research analyst Team now anticipates that the technology company will earn $5.01 per share for the quarter, up from their prior estimate of $3.25. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Arrow Electronics' current full-year earnings is $21.24 per share. Zacks Research also issued estimates for Arrow Electronics' Q4 2026 earnings at $4.74 EPS, FY2026 earnings at $20.41 EPS, Q1 2027 earnings at $4.73 EPS, Q3 2027 earnings at $5.05 EPS, Q4 2027 earnings at $5.26 EPS, FY2027 earnings at $20.08 EPS, Q1 2028 earnings at $3.92 EPS, Q2 2028 earnings at $5.19 EPS and FY2028 earnings at $19.28 EPS.

Other research analysts have also recently issued reports about the stock. Wall Street Zen upgraded shares of Arrow Electronics from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 25th. Wells Fargo & Company raised their price target on shares of Arrow Electronics from $175.00 to $200.00 and gave the company an "underweight" rating in a research report on Friday, August 7th. Bank of America upgraded Arrow Electronics from an "underperform" rating to a "neutral" rating and lifted their price target for the company from $122.00 to $233.00 in a research note on Wednesday, May 13th. Truist Financial lowered their price objective on Arrow Electronics from $260.00 to $250.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Finally, Raymond James Financial restated an "outperform" rating and issued a $250.00 target price on shares of Arrow Electronics in a report on Friday, August 7th. Three 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 MarketBeat, Arrow Electronics currently has a consensus rating of "Hold" and a consensus target price of $233.25.

Arrow Electronics Stock Performance

ARW opened at $203.70 on Monday. The company has a current ratio of 1.22, a quick ratio of 1.01 and a debt-to-equity ratio of 0.29. The company's fifty day moving average price is $210.78 and its two-hundred day moving average price is $189.24. Arrow Electronics has a 1-year low of $101.79 and a 1-year high of $237.33. The company has a market cap of $10.37 billion, a price-to-earnings ratio of 13.02, a PEG ratio of 0.30 and a beta of 1.20.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The technology company reported $5.45 EPS for the quarter, beating analysts' consensus estimates of $4.45 by $1.00. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%.The firm 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 company's revenue for the quarter was up 31.8% compared to the same quarter last year. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS.

Arrow Electronics announced that its Board of Directors has approved a stock repurchase program on Wednesday, May 13th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the technology company to reacquire up to 9.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Institutional Trading of Arrow Electronics

Hedge funds have recently bought and sold shares of the business. Bayban purchased a new stake in shares of Arrow Electronics during the 1st quarter valued at $26,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of Arrow Electronics by 112.0% during the 4th 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. Transamerica Financial Advisors LLC purchased a new position in shares of Arrow Electronics in the 4th quarter worth about $27,000. Keating Financial Advisory Services Inc. bought a new position in Arrow Electronics during the second quarter valued at about $28,000. Finally, Advisory Services Network LLC purchased a new stake in Arrow Electronics during the third quarter worth about $31,000. 99.34% of the stock is currently owned by institutional investors.

Key Stories Impacting Arrow Electronics

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

• Positive Sentiment: Analysts tracked by American Banking News assign Arrow Electronics an average price target of $233.25, implying meaningful upside from recent trading levels. Arrow Electronics Receives $233.25 Average Price Target from Analysts
• Positive Sentiment: Zacks Research raised its Arrow Electronics EPS forecasts across multiple periods, including FY2026 to $20.41 from $17.19, FY2027 to $20.08 from $16.22, and FY2028 to $19.28 from $15.33. The firm also lifted estimates for several quarterly periods, including Q3 2026 to $5.01 from $3.25 and Q3 2027 to $5.05 from $3.21.
• Neutral Sentiment: Zacks Research maintained a Hold rating, suggesting that the higher earnings forecasts have not yet prompted the analyst to view ARW as an outright buy. The current-year consensus EPS estimate is approximately $20.44, broadly in line with Zacks’ revised FY2026 forecast.
• Negative Sentiment: The stock’s decline may reflect valuation and momentum concerns following a strong run toward its 12-month high of $237.33. Investors may also be weighing the fact that Zacks’ longer-term FY2028 estimate of $19.28 is below its FY2027 forecast, despite the upward revisions.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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