Arrow Electronics (NYSE:ARW) Releases Earnings Results, Beats Expectations By $2.30 EPS

Arrow Electronics (NYSE:ARW) posted its quarterly earnings results on Thursday. The technology company reported $5.22 EPS for the quarter, topping analysts’ consensus estimates of $2.92 by $2.30, FiscalAI reports. The company had revenue of $9.47 billion for the quarter, compared to analysts’ expectations of $8.39 billion. Arrow Electronics had a net margin of 2.17% and a return on equity of 11.40%. Arrow Electronics’s revenue was up 39.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.80 EPS. 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 Stock Performance

ARW stock traded up $5.01 during midday trading on Friday, reaching $194.84. 951,759 shares of the company’s stock traded hands, compared to its average volume of 754,857. The company has a 50-day moving average price of $157.32 and a two-hundred day moving average price of $133.68. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.09 and a current ratio of 1.24. Arrow Electronics has a 52 week low of $101.79 and a 52 week high of $199.47. The firm has a market capitalization of $9.95 billion, a PE ratio of 13.94, a price-to-earnings-growth ratio of 0.92 and a beta of 1.16.

Arrow Electronics News Roundup

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.

Insider Activity

In other news, insider Richard John Marano sold 2,500 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $155.32, for a total transaction of $388,300.00. Following the completion of the transaction, the insider directly owned 24,096 shares in the company, valued at $3,742,590.72. The trade was a 9.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO William F. Austen purchased 3,960 shares of Arrow Electronics stock in a transaction dated Thursday, February 19th. The shares were purchased at an average price of $151.87 per share, with a total value of $601,405.20. Following the completion of the transaction, the chief executive officer directly owned 44,722 shares in the company, valued at approximately $6,791,930.14. This represents a 9.71% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold 19,199 shares of company stock valued at $3,009,786 over the last 90 days. Company insiders own 0.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Invesco Ltd. grew its position in shares of Arrow Electronics by 5.4% during the 4th quarter. Invesco Ltd. now owns 288,427 shares of the technology company’s stock valued at $31,779,000 after purchasing an additional 14,821 shares in the last quarter. Corient Private Wealth LLC grew its position in shares of Arrow Electronics by 18.2% during the 4th quarter. Corient Private Wealth LLC now owns 47,864 shares of the technology company’s stock valued at $5,274,000 after purchasing an additional 7,380 shares in the last quarter. Vident Advisory LLC grew its position in shares of Arrow Electronics by 8.9% during the 4th quarter. Vident Advisory LLC now owns 9,333 shares of the technology company’s stock valued at $1,028,000 after purchasing an additional 760 shares in the last quarter. XTX Topco Ltd purchased a new position in shares of Arrow Electronics during the 4th quarter valued at $2,266,000. Finally, Voloridge Investment Management LLC purchased a new position in shares of Arrow Electronics during the 4th quarter valued at $8,466,000. 99.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ARW has been the topic of a number of research reports. Truist Financial lifted their price target on shares of Arrow Electronics from $183.00 to $240.00 and gave the stock a “buy” rating in a report on Thursday. Wall Street Zen raised shares of Arrow Electronics from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Wells Fargo & Company boosted their target price on shares of Arrow Electronics from $140.00 to $165.00 and gave the company an “underweight” rating in a report on Friday. Zacks Research raised shares of Arrow Electronics from a “hold” rating to a “strong-buy” rating in a report on Monday, February 9th. Finally, Raymond James Financial reissued an “outperform” rating and set a $220.00 target price on shares of Arrow Electronics in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $183.75.

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.