Arrow Electronics, Inc.
- Open
- 204.87
- Day high
- 209.34
- Day low
- 201.08
- Prev close
- 205.98
- Volume
- 504K
- Mkt cap
- $10.6B
- P/E (TTM)
- 13.2
- EPS (TTM)
- $15.79
- P/B
- 1.5
- P/S
- 0.3
- Yield
- —
- Per share
- —
Arrow Electronics, Inc. (ARW) is a Technology company listed on NYSE. The stock is up 67% over the past year. Drillr has 3 published research articles covering ARW.
Arrow Electronics, Inc. (ARW) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARW earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $4.57 | $5.45 | +19.2% | $10.0B | +3.7% |
| May 7, 2026 | $2.79 | $5.22 | +86.9% | $9.5B | +13.5% |
| Feb 5, 2026 | $3.53 | $4.39 | +24.4% | $8.7B | +16.1% |
| Oct 30, 2025 | $2.27 | $2.41 | +6.2% | $7.7B | -4.5% |
| Jul 31, 2025 | $2.02 | $2.43 | +20.2% | $7.6B | +2.3% |
| May 1, 2025 | $1.47 | $1.80 | +22.4% | $6.8B | +2.8% |
| Feb 6, 2025 | $2.79 | $2.97 | +6.4% | $7.3B | +4.2% |
| Oct 31, 2024 | $2.23 | $2.38 | +6.8% | $6.8B | -3.6% |
| Aug 1, 2024 | $2.18 | $2.49 | +14.4% | $6.9B | +5.1% |
| May 2, 2024 | $2.33 | $2.41 | +3.3% | $6.9B | -2.2% |
| Feb 8, 2024 | $3.74 | $3.98 | +6.3% | $7.8B | -0.5% |
| Nov 2, 2023 | $3.55 | $4.14 | +16.8% | $8.0B | -1.6% |
ARW insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 17, 2026 | Kerin Andrew Charlesdirector | Grant | 146 | — |
| Aug 17, 2026 | Gunby Steven Henrydirector | Grant | 129 | — |
| Aug 17, 2026 | Hayford Michael Ddirector | Grant | 129 | — |
| Aug 17, 2026 | Lowe Carol Pdirector | Grant | 164 | — |
| Jun 1, 2026 | Zech Gretchenofficer: SVP, Chief Gov, Sust, HR Offr | Sell | 4,600 | $215.15 |
| May 22, 2026 | Zech Gretchenofficer: SVP, Chief Gov, Sust, HR Offr | Sell | 16,000 | $212.08 |
| May 22, 2026 | Jean-Claude Carine Lamercieofficer: SVP, CLCO and Secretary | Sell | 3,000 | $216.00 |
| May 21, 2026 | Nowak Ericofficer: President, Global ECS | Sell | 3,473 | $210.99 |
| May 18, 2026 | Gunby Steven Henrydirector | Grant | 132 | — |
| May 18, 2026 | Hayford Michael Ddirector | Grant | 132 | — |
| May 18, 2026 | Kerin Andrew Charlesdirector | Grant | 150 | — |
| May 18, 2026 | Lowe Carol Pdirector | Grant | 168 | — |
| May 14, 2026 | Chen Lawrence Lirendirector | Grant | 968 | — |
| May 14, 2026 | SMITH GERRY Pdirector | Grant | 968 | — |
| May 14, 2026 | Kerin Andrew Charlesdirector | Grant | 968 | — |
Source: ARW SEC Form 4 filings, latest Aug 17, 2026. For informational purposes only — not investment advice.
See the full ARW insider & 13F page →ARW research & analysis
[ARW] Arrow Electronics Thesis 2026: Components Distribution Cycle Drives Enterprise Computing Recovery
Arrow Electronics, Inc. (NYSE: ARW) FY2025 revenue ~$28.5-30.0B (+0-5%) with adj. EPS ~$10.50-11.50 reflecting continued post-2024 ~$21.5-22.5B aggregate Global Components revenue (~75%+ aggregate revenue mix; selected primary US + EMEA + Asia Pacific electronic components distribution + selected various aggregate semiconductors + interconnect + passives + electromechanical) + selected continued post-2024 ~$7.0-7.5B aggregate Global ECS (Enterprise Computing Solutions) revenue (~25% aggregate revenue mix; selected primary US + EMEA + Asia Pacific enterprise IT distribution + selected various aggregate cloud + storage + networking + virtualization + cybersecurity) under continued President + CEO Sean Kerins since 2022 (~3-year tenure as Arrow Electronics CEO). One of the largest US + global electronics components + Enterprise Computing Solutions distributors. Founded 1935 as Arrow Radio in New York City (~90-year heritage); selected post-1961 NYSE listing; selected post-2022 Sean Kerins CEO appointment. Headquartered in Centennial Colorado; ~22,000-23,000+ employees globally with ~$28.5-30.0B revenue. Two primary business segments: Global Components (~75%+ ~$21.5-22.5B), Global ECS (~25% ~$7.0-7.5B). Geographic mix: Americas ~40%+ + EMEA ~30% + Asia Pacific ~30%. Components distribution cycle (post-2024 trough recovery): ~$21.5-22.5B Global Components revenue; ~12,000+ aggregate components customers; ~1,200+ aggregate suppliers; selected continued post-2022-2024 trough cycle + selected various aggregate ~+0-5% aggregate Global Components revenue growth (selected normalization toward selected various aggregate ~+5-7% aggregate run-rate post-2026). Enterprise Computing Solutions (ECS) recovery + AI infrastructure cycle: ~$7.0-7.5B Global ECS revenue; selected primary cloud + storage + networking + virtualization + cybersecurity; ~+5-10% aggregate ECS revenue growth + AI infrastructure tailwind. President + CEO Sean Kerins since 2022 (~3-year tenure); CFO Raj Agrawal. Capital return: ~$0 dividend (no dividend track post-1990s); ~$300-450M aggregate FY2024-2025 buyback program (~$200-300M aggregate FY2025); aggregate capital return ~$200-300M FY2025; net leverage ratio ~2.5-3.0x; investment-grade Baa3/BBB- credit rating. FY2026 thesis: Components distribution cycle + ECS recovery + AI infrastructure cycle + ~$200-350M aggregate annual capital return + selected projected post-2026 ~+5-7% aggregate Global Components revenue growth normalization + AI infrastructure tailwind. Risks: Avnet + WPG Holdings + WT Microelectronics + Future Electronics components competition, TD SYNNEX + ScanSource ECS competition, semiconductor cycle considerations, AI capex cycle, enterprise IT spending cycle, sustained ~2.5-3.0x net leverage.
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Arrow Electronics, Inc. company profile
Overview
Arrow Electronics, Inc. (NYSE:ARW) is a global technology distributor founded in 1935 and headquartered in Centennial, Colorado. The company serves as a critical intermediary in the technology supply chain, connecting semiconductor manufacturers and technology vendors with businesses that need electronic components and computing solutions. Arrow went public in 1980 and has grown through both organic expansion and strategic acquisitions to become one of the world's largest technology distributors, operating across the Americas, Europe, the Middle East, Africa, and Asia Pacific regions.
Business
Arrow Electronics operates as a technology distributor in two primary business segments that serve different aspects of the electronics and computing markets. The Global Components segment, which generates approximately 70% of total revenue, focuses on distributing semiconductor products and electronic components. This division markets and distributes semiconductors (computer chips used in everything from smartphones to industrial equipment), passive components like capacitors and resistors that regulate electrical flow, electro-mechanical parts including switches and connectors, and computing memory products. The components business serves as a vital link between semiconductor manufacturers like Intel or Texas Instruments and the companies that design and build electronic products. Beyond simple distribution, Arrow provides value-added services including supply chain management, demand creation through marketing support, and engineering services to help customers design products and solve technical challenges. The Enterprise Computing Solutions (ECS) segment, representing about 30% of revenue, distributes computing hardware, software, and cloud solutions to businesses. This division offers datacenter equipment, cloud computing services, cybersecurity solutions, and analytics software. ECS operates more as a solutions provider than a traditional distributor, offering services like system integration, warehousing and logistics, technical training, and ongoing support. The segment has been transitioning toward an IT-as-a-Service model, focusing on recurring revenue streams through software subscriptions and managed services rather than one-time hardware sales. Both segments serve original equipment manufacturers (companies that build finished products), value-added resellers (companies that customize and resell technology), managed service providers, contract manufacturers, and other commercial customers across various industries including automotive, industrial automation, telecommunications, and healthcare.
Revenue model
Arrow Electronics generates revenue primarily through product sales and distribution margins. The company purchases electronic components and computing solutions from manufacturers at wholesale prices and sells them to customers at marked-up retail prices, earning the difference as gross margin. In the Global Components segment, Arrow typically earns gross margins of 12-13% on semiconductor and component sales, while the Enterprise Computing Solutions segment operates with similar margins on hardware and higher margins on software and services. The company's customers include original equipment manufacturers who need components for their products, value-added resellers who customize technology solutions, contract manufacturers who build products for other companies, and managed service providers who provide IT services to end users. Payment terms are typically 30-60 days, creating a working capital cycle where Arrow must finance inventory and receivables. Several factors influence Arrow's profitability margins. Favorable factors include strong end-market demand which allows for better pricing power, supply shortages that increase the value of Arrow's inventory management expertise, customers' need for engineering and design services which command higher margins, and the shift toward recurring revenue models in the ECS segment. Challenging factors include cyclical downturns in semiconductor markets that reduce demand and pricing power, excess inventory in the supply chain that pressures margins, competition from other distributors and direct sales by manufacturers, and customers' ability to source components directly during periods of ample supply. The company's margins are also affected by product mix, with higher-value engineering services and software solutions generating better profitability than commodity component distribution.
Competitive moat
Arrow Electronics operates in a moderately defensible position with several competitive advantages, though these do not constitute an exceptionally strong moat. The company's primary competitive advantages stem from its scale and established relationships in the technology supply chain. Arrow's global presence and large size provide significant purchasing power with suppliers, allowing it to secure better pricing and allocation during supply shortages. The company has built deep, long-term relationships with both major semiconductor manufacturers and thousands of customers worldwide, creating switching costs and barriers to entry for smaller competitors. Arrow's technical expertise and value-added services, particularly in engineering support and supply chain management, differentiate it from pure commodity distributors. The company's investments in digital platforms like ArrowSphere and its expansion into higher-margin services create some customer stickiness. Additionally, the complexity of managing global supply chains, regulatory compliance, and technical support creates operational barriers for new entrants. However, Arrow's competitive position faces several challenges. The distribution business is inherently cyclical and sensitive to economic downturns and semiconductor market cycles. Large customers increasingly seek to work directly with manufacturers, potentially disintermediating distributors. Competition from other major distributors like Avnet and smaller regional players remains intense, often leading to margin pressure. The rise of online marketplaces and direct-to-customer sales by manufacturers poses a long-term structural threat. Furthermore, Arrow's business model depends heavily on maintaining relationships with suppliers who could choose to bypass distributors entirely, particularly during periods of strong demand when direct sales become more attractive to manufacturers.
Risks & safety
Arrow Electronics presents a moderate margin of safety with manageable financial risks but some cyclical vulnerabilities. **Cash and Debt Position:** - Cash and short-term investments: $232 million (Q1 2025) - Total debt-to-equity ratio: 0.48 (Q1 2025), indicating moderate leverage - Strong free cash flow generation: $352 million in Q1 2025, $1.04 billion in FY 2024 - Current ratio of 1.43 indicates adequate liquidity to meet short-term obligations **Valuation Metrics:** - Trading at P/E ratio of 17.0 (Q1 2025), reasonable for a cyclical business - Price-to-book ratio of 0.91, suggesting shares trade below book value - EV/EBITDA of 24.3 appears elevated but reflects cyclical low earnings - Graham number suggests potential undervaluation relative to asset base **Other Considerations:** - Working capital intensive business model creates cash flow volatility - Cyclical nature of semiconductor industry poses earnings variability risk - Strong market position and operational cash flow provide downside protection
Recent development
Over the past few years, Arrow Electronics has undertaken several strategic initiatives focused on navigating cyclical market challenges and positioning for future growth. The company has been managing through a prolonged semiconductor market correction that began in late 2022, characterized by excess inventory throughout the supply chain and reduced demand across most end markets. In response to these challenges, Arrow implemented significant cost reduction initiatives, targeting $90-100 million in annual savings by 2026 through operating expense reductions and exiting non-core business lines. The company has been carefully managing working capital, reducing inventory levels by over $1 billion from peak levels while maintaining service levels for customers. Strategically, Arrow has been investing in higher-value services and capabilities. In the Global Components segment, the company established centers of excellence for automotive, robotics, and high-power markets, expanding its engineering and design services capabilities. The company is also positioning itself to capitalize on emerging opportunities in artificial intelligence infrastructure, both through component sourcing for AI hardware and cloud solutions for AI applications. In the Enterprise Computing Solutions segment, Arrow has been transitioning toward an IT-as-a-Service model, focusing on recurring revenue streams that now approach one-third of the segment's business. The company has expanded its ArrowSphere digital platform to provide customers with better self-service capabilities and has been building expertise in hybrid cloud, cybersecurity, and AI-related software solutions. Recent quarters have shown strong growth in this segment, with recurring revenue and cloud-related services driving improved profitability and customer retention.
ARW company profile · for informational purposes only — not investment advice.
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