Zacks Research Has Optimistic Outlook of ARW Q3 Earnings

Key Points

• Zacks Research turned more bullish on Arrow Electronics, raising its Q3 2026 EPS estimate to $3.25 from $3.02 and maintaining a Strong-Buy rating. The firm also projected earnings for several later quarters, suggesting continued optimism about the company’s results.
• Recent analyst sentiment is mostly positive, with multiple firms lifting price targets, including Truist Financial to $240 and Bank of America to $233. MarketBeat’s average rating for ARW is currently “Moderate Buy,” with an average price target of $214.50.
• Arrow Electronics just delivered a strong quarter and authorized a large buyback, reporting $5.22 EPS and $9.47 billion in revenue, both well above estimates, while raising Q2 2026 guidance to 4.32–4.520 EPS. Its board also approved a $1 billion share repurchase plan, signaling confidence in the stock’s value.

Arrow Electronics, Inc. (NYSE:ARW - Free Report) - Equities researchers at Zacks Research raised their Q3 2026 EPS estimates for shares of Arrow Electronics in a research report issued to clients and investors on Thursday, May 28th. Zacks Research analyst Team now anticipates that the technology company will post earnings of $3.25 per share for the quarter, up from their previous estimate of $3.02. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Arrow Electronics' current full-year earnings is $17.97 per share. Zacks Research also issued estimates for Arrow Electronics' Q4 2026 earnings at $4.23 EPS, Q4 2027 earnings at $4.24 EPS and Q1 2028 earnings at $3.45 EPS.

Several other research firms have also commented on ARW. Weiss Ratings reiterated a "buy (b-)" rating on shares of Arrow Electronics in a research note on Tuesday. Truist Financial boosted their price objective on shares of Arrow Electronics from $183.00 to $240.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Bank of America upgraded shares of Arrow Electronics from an "underperform" rating to a "neutral" rating and boosted their price objective for the stock from $122.00 to $233.00 in a research note on Wednesday, May 13th. Wall Street Zen upgraded shares of Arrow Electronics from a "hold" rating to a "buy" rating in a research note on Saturday, February 7th. Finally, Wells Fargo & Company boosted their price objective on shares of Arrow Electronics from $140.00 to $165.00 and gave the stock an "underweight" rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $214.50.

Arrow Electronics Trading Down 0.8%

NYSE ARW opened at $215.87 on Friday. The company has a quick ratio of 1.02, a current ratio of 1.24 and a debt-to-equity ratio of 0.35. The firm has a market cap of $11.04 billion, a PE ratio of 15.44 and a beta of 1.16. The company has a 50 day moving average price of $177.33 and a 200 day moving average price of $143.67. Arrow Electronics has a 52 week low of $101.79 and a 52 week high of $224.83.

Arrow Electronics (NYSE:ARW - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The technology company reported $5.22 EPS for the quarter, beating the consensus estimate of $2.92 by $2.30. 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 company's quarterly revenue was up 39.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.80 EPS. Arrow Electronics has set its Q2 2026 guidance at 4.32-4.520 EPS.

Hedge Funds Weigh In On Arrow Electronics

Several hedge funds and other institutional investors have recently modified their holdings of ARW. Winnow Wealth LLC purchased a new position in Arrow Electronics during the third quarter worth about $26,000. Root Financial Partners LLC acquired a new stake in shares of Arrow Electronics during the 3rd quarter worth about $26,000. Bayban acquired a new stake in shares of Arrow Electronics during the 1st quarter worth about $26,000. Northwestern Mutual Wealth Management Co. increased its position 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 last quarter. Finally, Transamerica Financial Advisors LLC acquired a new stake in shares of Arrow Electronics during the 4th quarter worth about $27,000. 99.34% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Arrow Electronics

In other news, insider Eric Nowak sold 3,473 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total value of $732,768.27. Following the sale, the insider directly owned 48,835 shares of the company's stock, valued at $10,303,696.65. This represents a 6.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the company'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 owned 12,626 shares of the company's stock, valued at approximately $2,727,216. This trade represents a 19.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is owned by corporate insiders.

Arrow Electronics announced that its board has initiated a share repurchase plan on Wednesday, May 13th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the technology company to repurchase up to 9.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

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.

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