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

Arrow Electronics (NYSE:ARW) posted its quarterly earnings data on Thursday. The technology company reported $5.45 earnings per share for the quarter, beating the consensus estimate of $4.45 by $1.00, FiscalAI reports. Arrow Electronics had a net margin of 2.17% and a return on equity of 11.40%. The firm had revenue of $9.99 billion for the quarter, compared to analysts’ expectations of $9.67 billion. During the same quarter last year, the company posted $2.43 EPS. The business’s quarterly 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 Trading Down 1.7%

NYSE:ARW traded down $3.96 during trading hours on Thursday, reaching $222.89. The company’s stock had a trading volume of 750,253 shares, compared to its average volume of 522,086. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.02 and a current ratio of 1.24. The firm has a market capitalization of $11.40 billion, a price-to-earnings ratio of 15.94 and a beta of 1.20. The firm has a 50-day simple moving average of $215.99 and a 200-day simple moving average of $180.49. Arrow Electronics has a 1 year low of $101.79 and a 1 year high of $237.33.

Arrow Electronics declared that its Board of Directors has approved a share repurchase program on Wednesday, May 13th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the technology company to reacquire up to 9.7% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Key Headlines Impacting Arrow Electronics

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

• Positive Sentiment: Arrow Electronics reported second-quarter earnings of $5.45 per share, exceeding the analyst consensus of $4.45. Revenue rose 31.8% year over year to $9.99 billion, above expectations of $9.67 billion, while prior-year EPS was $2.43. Arrow Electronics Q2 Earnings Snapshot
• Positive Sentiment: Management issued stronger-than-expected third-quarter guidance, calling for EPS of $4.83 to $5.03 versus the $4.50 consensus and revenue of $9.6 billion to $10.2 billion versus the $9.5 billion estimate. The outlook suggests continued demand across Arrow’s technology distribution businesses. Arrow Electronics Reports Strong Q2 and Provides Guidance
• Positive Sentiment: The company appointed Deidra C. Merriwether as president and chief operating officer. The leadership change could support execution and operational focus, although the announcement provided limited financial detail. Arrow Electronics Appoints Deidra C. Merriwether
• Neutral Sentiment: Arrow Electronics trades near the upper end of its 52-week range, with a market capitalization of approximately $11.4 billion and a price-to-earnings ratio near 16. Strong results may therefore have been partly anticipated by investors.
• Negative Sentiment: Zacks Research downgraded Arrow Electronics from “strong buy” to “hold,” potentially weighing on sentiment following the recent rally. Separately, the average brokerage price target was reported at approximately $222, suggesting limited upside relative to recent trading levels.

Insider Activity

In other news, 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 value of $648,000.00. Following the completion of the sale, the senior vice president owned 12,626 shares of the company’s stock, valued at approximately $2,727,216. The trade was a 19.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Eric Nowak sold 3,473 shares of the stock in a transaction dated 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 owned 48,835 shares of the company’s stock, valued at $10,303,696.65. This represents a 6.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Arrow Electronics

A number of large investors have recently bought and sold shares of the stock. Transamerica Financial Advisors LLC bought a new position in shares of Arrow Electronics in the fourth quarter worth approximately $27,000. Northwestern Mutual Wealth Management Co. raised its holdings in Arrow Electronics by 112.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the technology company’s stock valued at $27,000 after buying an additional 131 shares during the last quarter. Advisory Services Network LLC purchased a new stake in Arrow Electronics during the 3rd quarter valued at $31,000. Quarry LP bought a new stake in Arrow Electronics in the 3rd quarter worth $33,000. Finally, Geneos Wealth Management Inc. grew its holdings in Arrow Electronics by 68.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 353 shares of the technology company’s stock worth $37,000 after acquiring an additional 143 shares during the last quarter. 99.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on ARW shares. Wall Street Zen raised Arrow Electronics from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 25th. Raymond James Financial reaffirmed an “outperform” rating and set a $220.00 price target on shares of Arrow Electronics in a research note on Friday, May 8th. Wells Fargo & Company upped their price objective on Arrow Electronics from $165.00 to $175.00 and gave the stock an “underweight” rating in a report on Monday, July 20th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Arrow Electronics in a research report on Tuesday, May 26th. Finally, Zacks Research cut Arrow Electronics from a “strong-buy” rating to a “hold” rating in a report on Monday. Three investment 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. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $222.00.

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.