Arrow Electronics (NYSE:ARW) Posts Quarterly Earnings Results, Beats Estimates By $0.86 EPS

Arrow Electronics (NYSE:ARW) announced its earnings results on Thursday. The technology company reported $5.45 earnings per share for the quarter, beating the consensus estimate of $4.59 by $0.86, FiscalAI reports. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The firm had revenue of $9.99 billion during the quarter, compared to the consensus estimate of $9.67 billion. 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 Stock Performance

Shares of ARW traded down $3.96 on Thursday, reaching $222.89. 750,253 shares of the stock traded hands, compared to its average volume of 637,220. The stock’s 50-day moving average price is $215.85 and its 200-day moving average price is $179.75. 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 firm has a market cap of $11.40 billion, a price-to-earnings ratio of 15.94 and a beta of 1.20. Arrow Electronics has a 12 month low of $101.79 and a 12 month high of $237.33.

Insider Buying and Selling at Arrow Electronics

In other Arrow Electronics news, insider Eric Nowak sold 3,473 shares of Arrow Electronics stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total transaction of $732,768.27. Following the sale, the insider owned 48,835 shares in the company, valued at $10,303,696.65. The trade was a 6.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $216.00, for a total transaction of $648,000.00. Following the completion of the sale, the senior vice president directly owned 12,626 shares in the company, valued at $2,727,216. This trade represents a 19.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. boosted its holdings in Arrow Electronics by 5.4% during the fourth 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 lifted 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 worth $5,274,000 after buying an additional 7,380 shares during the period. Vident Advisory LLC boosted its stake in Arrow Electronics by 8.9% in the 4th quarter. Vident Advisory LLC now owns 9,333 shares of the technology company’s stock valued at $1,028,000 after buying an additional 760 shares in the last quarter. XTX Topco Ltd bought a new stake in Arrow Electronics in the fourth quarter valued at $2,266,000. Finally, Voloridge Investment Management LLC bought a new stake in Arrow Electronics in the fourth quarter valued at $8,466,000. Institutional investors own 99.34% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have commented on the company. Bank of America raised Arrow Electronics from an “underperform” rating to a “neutral” rating and lifted their price target for the stock from $122.00 to $233.00 in a research report on Wednesday, May 13th. Wells Fargo & Company raised their price objective on shares of Arrow Electronics from $165.00 to $175.00 and gave the stock an “underweight” rating in a research note on Monday, July 20th. Zacks Research downgraded shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research note on Monday. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Arrow Electronics in a research report on Tuesday, May 26th. Finally, Wall Street Zen upgraded shares of Arrow Electronics from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 25th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $222.00.

Arrow Electronics announced that its board has initiated a share repurchase plan on Wednesday, May 13th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the technology company to purchase up to 9.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

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.