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

Arrow Electronics (NYSE:ARW) issued its quarterly earnings results on Thursday. The technology company reported $5.22 earnings per share (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 analyst estimates of $8.39 billion. During the same period in the previous year, the company posted $1.80 earnings per share. The company’s quarterly 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 on Friday, hitting $194.84. The company’s stock had a trading volume of 951,759 shares, 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. Arrow Electronics has a fifty-two week low of $101.79 and a fifty-two week high of $199.47. The company has a 50 day moving average price of $157.32 and a 200 day moving average price of $133.68.

More 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.

Analyst Ratings Changes

ARW has been the topic of several research reports. Wells Fargo & Company boosted their price target on Arrow Electronics from $140.00 to $165.00 and gave the company an “underweight” rating in a research note on Friday. Raymond James Financial restated an “outperform” rating and set a $220.00 price target on shares of Arrow Electronics in a research note on Friday. Weiss Ratings upgraded Arrow Electronics from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, February 26th. Truist Financial boosted their price target on Arrow Electronics from $183.00 to $240.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Zacks Research upgraded Arrow Electronics from a “hold” rating to a “strong-buy” rating in a research note on Monday, February 9th. One 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 MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $183.75.

Insiders Place Their Bets

In other Arrow Electronics news, SVP Carine Lamercie Jean-Claude sold 4,000 shares of the company’s stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $156.65, for a total transaction of $626,600.00. Following the transaction, the senior vice president owned 16,261 shares of the company’s stock, valued at approximately $2,547,285.65. This represents a 19.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Eric Nowak sold 12,699 shares of the company’s stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $157.09, for a total value of $1,994,885.91. Following the transaction, the insider directly owned 43,509 shares in the company, valued at approximately $6,834,828.81. This represents a 22.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 19,199 shares of company stock valued at $3,009,786 over the last quarter. 0.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its holdings in Arrow Electronics by 37.7% during the 3rd quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company’s stock worth $384,818,000 after buying an additional 871,585 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Arrow Electronics by 0.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,995,615 shares of the technology company’s stock worth $330,068,000 after buying an additional 16,570 shares in the last quarter. FIL Ltd lifted its holdings in Arrow Electronics by 33.8% during the 4th quarter. FIL Ltd now owns 1,231,833 shares of the technology company’s stock worth $135,723,000 after buying an additional 310,936 shares in the last quarter. Sei Investments Co. lifted its holdings in Arrow Electronics by 4.3% during the 3rd quarter. Sei Investments Co. now owns 814,794 shares of the technology company’s stock worth $98,591,000 after buying an additional 33,481 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Arrow Electronics by 1.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 528,776 shares of the technology company’s stock worth $58,261,000 after buying an additional 7,588 shares in the last quarter. Institutional investors and hedge funds own 99.34% of the company’s stock.

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.