Arrow Electronics (NYSE:ARW) Announces Quarterly Earnings Results

Arrow Electronics (NYSE:ARW) announced 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. The firm had revenue of $9.99 billion for the quarter, compared to analyst estimates of $9.67 billion. Arrow Electronics had a net margin of 2.26% and a return on equity of 13.63%. The business’s quarterly revenue was up 31.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.43 earnings per share. 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 Price Performance

ARW opened at $203.51 on Friday. Arrow Electronics has a 1 year low of $101.79 and a 1 year high of $237.33. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.02. The company has a market capitalization of $10.41 billion, a price-to-earnings ratio of 13.00 and a beta of 1.20. The firm’s fifty day moving average price is $215.78 and its two-hundred day moving average price is $180.65.

Analyst Upgrades and Downgrades

ARW has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Arrow Electronics in a research report on Tuesday, May 26th. Zacks Research lowered Arrow Electronics from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Wall Street Zen raised Arrow Electronics from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 25th. Wells Fargo & Company boosted their price objective on Arrow Electronics from $175.00 to $200.00 and gave the company an “underweight” rating in a report on Friday. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $250.00 target price on shares of Arrow Electronics in a research report on Friday. Three research 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. According to MarketBeat.com, Arrow Electronics has a consensus rating of “Hold” and an average target price of $233.25.

Arrow Electronics declared that its board has initiated a share buyback program on Wednesday, May 13th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the technology company to repurchase up to 9.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Key Headlines Impacting Arrow Electronics

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

• Positive Sentiment: Second-quarter results exceeded expectations: Arrow reported adjusted EPS of $5.45 versus the $4.45 consensus estimate, while revenue rose 31.8% year over year to $9.99 billion, above forecasts. Arrow Electronics Q2 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Demand and backlog trends remain encouraging: Management cited broadening demand in Global Components, including AI, aerospace and industrial markets. Book-to-bill remained above 1, with backlog extending into the first half of 2027. Arrow Q2 Earnings Call Signals More Runway in Components
• Positive Sentiment: Capital allocation and analyst support provided offsets: A new share-repurchase plan, lower debt and margin-expansion commentary support the investment case. Truist maintained a Buy rating with a $250 price target, implying meaningful potential upside from recent trading levels. Truist raises Arrow Electronics price target
• Neutral Sentiment: Leadership change: Arrow appointed Deidra C. Merriwether as president and chief operating officer. The change could support execution, but investors may await more details on her priorities and expected impact. Arrow Electronics Appoints Deidra C. Merriwether
• Negative Sentiment: Third-quarter guidance implies sequential earnings moderation: Arrow forecast non-GAAP EPS of $4.83–$5.03 and revenue of $9.6–$10.2 billion. Although above consensus, the EPS outlook is below the latest quarter’s result, and investors appeared to expect a larger upgrade after the stock’s strong run.
• Negative Sentiment: Margin concerns persist: Partner restructuring charges continued to weigh on Enterprise Computing Solutions, while management acknowledged remaining pressure in parts of the business.
• Negative Sentiment: Insider selling may have added pressure: Quiver Quantitative reported 14 insider sales and no purchases during the past six months. Institutional positioning was mixed, with several large funds reducing their holdings.

Insider Activity

In other news, 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 completion of the sale, the insider owned 48,835 shares in the company, valued at $10,303,696.65. This represents a 6.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the firm’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $216.00, for a total transaction of $648,000.00. Following the transaction, the senior vice president directly owned 12,626 shares in the company, valued at $2,727,216. The trade was a 19.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Arrow Electronics

A number of hedge funds and other institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Arrow Electronics by 45.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,748 shares of the technology company’s stock valued at $2,154,000 after acquiring an additional 6,523 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Arrow Electronics by 8.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 199,971 shares of the technology company’s stock worth $20,763,000 after acquiring an additional 14,886 shares during the period. Geneos Wealth Management Inc. boosted its position in Arrow Electronics by 68.1% in the first quarter. Geneos Wealth Management Inc. now owns 353 shares of the technology company’s stock worth $37,000 after purchasing an additional 143 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Arrow Electronics in the second quarter worth $492,000. Finally, Walleye Capital LLC bought a new position in Arrow Electronics in the 2nd quarter valued at $475,000. Hedge funds and other institutional investors own 99.34% of the company’s stock.

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.