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

Arrow Electronics (NYSE:ARW) issued its earnings results on Thursday. The technology company reported $6.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.06 by $1.16, FiscalAI reports. The company had revenue of $10.72 billion for the quarter, compared to analyst estimates of $10.07 billion. Arrow Electronics had a net margin of 2.26% and a return on equity of 13.41%. The company’s revenue for the quarter was up 39.0% on a year-over-year basis. During the same quarter last year, the firm earned $2.41 EPS. 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 Up 2.3%

Shares of ARW stock opened at $181.11 on Friday. The firm has a market capitalization of $9.22 billion, a PE ratio of 9.18, a PEG ratio of 0.30 and a beta of 1.20. Arrow Electronics has a 52-week low of $101.79 and a 52-week high of $249.43. The stock has a fifty day simple moving average of $217.90 and a two-hundred day simple moving average of $192.32. 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 Headlines Impacting Arrow Electronics

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

• Positive Sentiment: Arrow reported record Q3 earnings of $6.22 per share, above the $5.06 consensus, on revenue of $10.72 billion versus $10.07 billion expected. Revenue rose 39% year over year. Arrow Electronics Reports Record Quarterly Revenue and EPS
• Positive Sentiment: Q4 guidance was well ahead of analyst expectations: EPS of $7.00–$7.20 versus $5.80 consensus and revenue of $11.6–$12.2 billion versus $10.5 billion. The company cited strong demand, higher volumes, growing backlogs and AI-related growth. Q3 Earnings Call Highlights
• Neutral Sentiment: Truist lowered its price target from $250 to $230 but maintained a Buy rating, indicating continued optimism while moderating its valuation view.
• Neutral Sentiment: A tranche update was reported for Arrow’s previously announced share-buyback plan, though the available details do not specify its size or likely near-term impact. Buyback Plan Tranche Update

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Wall Street Zen raised shares of Arrow Electronics from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Zacks Research cut shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 26th. Truist Financial dropped their price objective on shares of Arrow Electronics from $250.00 to $230.00 and set a “buy” rating on the stock in a research note on Friday. Weiss Ratings upgraded Arrow Electronics from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $250.00 price objective on shares of Arrow Electronics in a research report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Arrow Electronics has a consensus rating of “Hold” and an average price target of $228.25.

Insider Buying and Selling at Arrow Electronics

In other news, SVP Carine Jean-Claude sold 1,000 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $209.85, for a total value of $209,850.00. Following the sale, the senior vice president directly owned 11,626 shares in the company, valued at approximately $2,439,716.10. This trade represents a 7.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.80% of the company’s stock.

About Arrow Electronics

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.