Arrow Electronics (NYSE:ARW) Issues Quarterly Earnings Results, Beats Estimates By $1.16 EPS

Arrow Electronics (NYSE:ARW) released its earnings results on Thursday. The technology company reported $6.22 earnings per share for the quarter, topping the consensus estimate of $5.06 by $1.16, FiscalAI reports. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%. The firm had revenue of $10.72 billion for the quarter, compared to the consensus estimate of $10.07 billion. During the same period in the prior year, the business posted $2.41 earnings per share. The firm’s revenue for the quarter was up 39.0% compared to the same quarter last year. Arrow Electronics updated its Q4 2026 guidance to 7.000-7.200 EPS.

Here are the key takeaways from Arrow Electronics’ conference call:

• Arrow reported record Q3 revenue of $10.7 billion, up 39% year over year, and record non-GAAP EPS of $6.22, up 158%. Operating margin expanded 130 basis points to 4.1%, reflecting operating leverage and strong volume.
• Management cited broad-based strength in Global Components, with book-to-bill well above parity, backlog extending into mid-2027, and continued growth across regions and end markets. Higher memory prices boosted Q3 revenue and profit dollars, though Q4 growth is expected to be driven mainly by unit volume.
• Q4 revenue guidance is $11.55 billion to $12.15 billion, up 36% year over year at the midpoint, with non-GAAP EPS of $7.00 to $7.20. ECS demand and backlog conversion were strong, and management expects Q4 billings-based ECS margins to be roughly flat year over year.
• Working capital rose about $900 million sequentially, including a $1.4 billion inventory increase; operating cash flow was negative $441 million in Q3. Management said roughly $600 million of the inventory build supported Arrow Intelligence Solutions orders expected to ship in coming quarters, but the build weighed on near-term cash flow.
• Greater hardware mix is expected to keep ECS’s Q4 reported operating margin below its historical level of about 6%, although management said billings-based margins remain healthy. The favorable Q3 tax settlement also contributed to EPS exceeding guidance and is not presented as a recurring driver.

Arrow Electronics Trading Down 12.7%

ARW traded down $25.72 on Thursday, reaching $176.91. 1,103,502 shares of the company’s stock were exchanged, compared to its average volume of 446,939. The company’s 50 day moving average is $218.45 and its 200-day moving average is $191.98. The company has a market cap of $9.01 billion, a price-to-earnings ratio of 11.30, a PEG ratio of 0.30 and a beta of 1.20. Arrow Electronics has a twelve month low of $101.79 and a twelve month high of $249.43. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.01 and a current ratio of 1.22.

Key Stories Impacting Arrow Electronics

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

• Positive Sentiment: Third-quarter EPS was $6.22, beating the roughly $5.06 consensus, while revenue of $10.72 billion exceeded expectations of about $10.07 billion and rose 39% year over year. The company described both quarterly revenue and EPS as records. Arrow Electronics Reports Record Quarterly Revenue and EPS
• Positive Sentiment: Arrow’s fourth-quarter outlook was also substantially above forecasts: EPS guidance of $7.00–$7.20 versus consensus of $5.80, and revenue guidance of $11.6–$12.2 billion versus $10.5 billion. Arrow Electronics Q3 Profit Jumps, Issues Q4 Outlook
• Neutral Sentiment: Despite the earnings beat and strong outlook, ARW shares declined. The articles provided do not point to a specific negative development behind the move, so the market reaction appears at odds with the favorable reported results; a “sell-the-news” explanation is possible but not confirmed by this coverage. Arrow Electronics Stock Information

Insiders Place Their Bets

In other Arrow Electronics news, SVP Carine Jean-Claude sold 1,000 shares of Arrow Electronics stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $209.85, for a total transaction of $209,850.00. Following the transaction, the senior vice president directly owned 11,626 shares of the company’s stock, valued at $2,439,716.10. The trade was a 7.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.80% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages recently commented on ARW. Wells Fargo & Company upped their price target on shares of Arrow Electronics from $175.00 to $200.00 and gave the stock an “underweight” rating in a research report on Friday, August 7th. Raymond James Financial reiterated an “outperform” rating and issued a $250.00 price target on shares of Arrow Electronics in a report on Friday, August 7th. Wall Street Zen cut shares of Arrow Electronics from a “strong-buy” rating to a “buy” rating in a research note on Saturday, September 19th. Zacks Research downgraded Arrow Electronics from a “strong-buy” rating to a “hold” rating in a report on Monday, October 26th. Finally, Truist Financial dropped their price objective on Arrow Electronics from $260.00 to $250.00 and set a “buy” rating for the company in a report on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Arrow Electronics has a consensus rating of “Hold” and a consensus target price of $233.25.

Arrow Electronics Company Profile

Arrow Electronics, Inc is a global distributor of electronic components and enterprise computing solutions. The company connects manufacturers of technology products with customers, including original equipment manufacturers, contract manufacturers, commercial enterprises and government organizations.

Arrow’s components business distributes products such as semiconductors, embedded systems, passive and electromechanical components, and related engineering services. Its enterprise computing solutions business provides technology products and services involving data center, cloud, security, networking and software solutions.