Arrow Electronics, Inc. (ARW)
NYSE:ARW
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Arrow Electronics
(NYSE:ARW)
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Rating:75Outperform
Price Target:
$227.00
▲(29.74% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving fundamentals and balance-sheet trend, plus strong technical uptrend. A low P/E supports valuation, while the earnings call reinforced momentum and constructive guidance; the main constraints are thin structural margins, inconsistent cash-flow conversion from working-capital swings, and stretched momentum signals (RSI/Stoch) that increase pullback risk.
Positive Factors
Value‑Added Services
A large, persistent contribution from value‑added services (supply chain, engineering, integration) increases customer stickiness and yields higher margin dollars than pure distribution. This structural mix supports more durable operating margin expansion and revenue resiliency through cycles over the next several months.
Negative Factors
Structurally Thin Margins
Gross and net margins are structurally narrow for a distribution business, limiting the firm's ability to absorb cost inflation or sustain large SG&A increases without pressuring profitability. Thin margins heighten sensitivity to product mix, pricing, and regional mix shifts over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Value‑Added Services
A large, persistent contribution from value‑added services (supply chain, engineering, integration) increases customer stickiness and yields higher margin dollars than pure distribution. This structural mix supports more durable operating margin expansion and revenue resiliency through cycles over the next several months.
Read all positive factors
Arrow Electronics Key Performance Indicators (KPIs)
Arrow Electronics (ARW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.11B
Dividend YieldN/A
Average Volume (3M)771.68K
Price to Earnings (P/E)8.0
Beta (1Y)1.09
Revenue Growth20.49%
EPS Growth92.31%
CountryUS
Employees21,520
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)14.06
Shares Outstanding51,133,945
10 Day Avg. Volume750,670
30 Day Avg. Volume771,678
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.87
Price to Sales (P/S)0.18
P/FCF Ratio-153.41
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda10.06
Forecast
1Y Price Target
$214.50Price Target Upside22.59% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)18.57
Revenue Forecast (FY)$37.94B
Arrow Electronics Business Overview & Revenue Model
Company Description
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company o...
How the Company Makes Money
Arrow primarily makes money by selling products it sources from technology manufacturers to OEMs, contract manufacturers, and other business customers, earning a gross margin on distribution at scale. A major revenue stream is its Global Component...
Arrow Electronics Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum and meaningful financial improvement: high revenue growth (+39% YoY), substantial EPS and margin expansion, improved returns on capital, and healthy Q2 guidance. Management flagged several transitory and structural risks — including an ECS one-time charge, the benefit of four extra shipping days in Q1 (creating timing-related volatility), inventory build related to AI/data-center projects, compensation-driven OpEx increases, and exposure to memory pricing — but these were framed as manageable or temporary. Given the weight and magnitude of the positive operational and financial results and constructive guidance relative to the identified lowlights, the tone of the call is overall favorable.Positive Updates
Robust Revenue Growth
Total revenue of $9.5 billion, up 39% year-over-year (34% on a constant currency basis); Q2 sales guidance $9.15B–$9.75B (midpoint +25% YoY).
Negative Updates
ECS Margin Pressure and One-Time Items
ECS non-GAAP operating margins declined modestly by 10 bps YoY, driven in part by pockets of constrained supply and a charge related to one underperforming multiyear contract; management is adjusting contract economics.
Read all updates
Q1-2026 Updates
Positive
Negative
Robust Revenue Growth
Total revenue of $9.5 billion, up 39% year-over-year (34% on a constant currency basis); Q2 sales guidance $9.15B–$9.75B (midpoint +25% YoY).
Read all positive updates
Company Guidance
Arrow guided Q2 sales of $9.15–$9.75 billion (midpoint ~+25% YoY), with Global Components expected at $6.8–$7.2 billion (≈+5% sequential at the midpoint) and Enterprise Computing Solutions at $2.35–$2.55 billion (≈+7% YoY at the midpoint); non‑GAAP diluted EPS was guided to $4.32–$4.52, with an estimated tax rate of 23–25% and interest expense of roughly $60 million. Management also said Global Components should perform at or above seasonal trends across regions for the remainder of the year, Asia will be seasonally strong in Q2 but at lower margin, Supply Chain Services’ profit should normalize versus the Q1 spike, and Q2 will reflect the timing of annual compensation increases—while reiterating confidence in sustained backlog coverage into Q3–Q4 and continued operating leverage.Arrow Electronics Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.51B | 30.85B | 27.92B | 33.11B | 37.12B | 34.48B |
| Gross Profit | 3.75B | 3.47B | 3.29B | 4.15B | 4.84B | 4.20B |
| EBITDA | 1.32B | 1.07B | 1.12B | 1.67B | 2.26B | 1.76B |
| Net Income | 726.65M | 571.27M | 392.07M | 903.50M | 1.43B | 1.11B |
Balance Sheet | ||||||
| Total Assets | 35.95B | 29.08B | 21.76B | 21.73B | 21.76B | 19.54B |
| Cash, Cash Equivalents and Short-Term Investments | 286.51M | 306.47M | 188.81M | 218.05M | 176.91M | 222.19M |
| Total Debt | 2.47B | 3.09B | 3.39B | 3.81B | 3.77B | 2.63B |
| Total Liabilities | 29.14B | 22.42B | 15.93B | 15.85B | 16.15B | 14.19B |
| Stockholders Equity | 6.74B | 6.58B | 5.76B | 5.81B | 5.55B | 5.28B |
Cash Flow | ||||||
| Free Cash Flow | 377.61M | -37.20M | 1.04B | 622.16M | -111.91M | 335.93M |
| Operating Cash Flow | 412.12M | 64.05M | 1.13B | 705.45M | -33.08M | 418.98M |
| Investing Cash Flow | 16.48M | 23.60M | -94.44M | -72.32M | -57.71M | -60.12M |
| Financing Cash Flow | -512.69M | -206.14M | -956.83M | -666.22M | 109.78M | -463.30M |
Arrow Electronics Technical Analysis
Positive
174.97
Price Trends
172.80
Positive
153.93
Positive
135.83
Positive
Market Momentum
11.71
Negative
74.80
Negative
91.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARW, the sentiment is Positive. The current price of 174.97 is below the 20-day moving average (MA) of 198.73, above the 50-day MA of 172.80, and above the 200-day MA of 135.83, indicating a bullish trend. The MACD of 11.71 indicates Negative momentum. The RSI at 74.80 is Negative, neither overbought nor oversold. The STOCH value of 91.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARW.
Arrow Electronics Risk Analysis
Arrow Electronics disclosed 27 risk factors in its most recent earnings report. Arrow Electronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arrow Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.11B | 7.96 | 11.15% | ― | 20.49% | 92.31% | |
75 Outperform | $19.08B | 9.59 | 11.60% | 1.15% | 10.39% | 50.26% | |
74 Outperform | $1.68B | 21.38 | 9.67% | 1.02% | 0.78% | 3.87% | |
69 Neutral | $896.11M | 11.45 | 8.07% | ― | 3.76% | 18.30% | |
64 Neutral | $2.95B | 17.19 | 11.17% | ― | -1.83% | -2.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $7.05B | 12.98 | 4.33% | 2.77% | 12.68% | -27.94% |
* Technology Sector Average
ARW
Arrow Electronics
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100.20
85.55%
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NSIT
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SCSC
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SNX
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Arrow Electronics Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Arrow Electronics Shareholders Approve Governance and Voting Changes
Positive
May 13, 2026
At its annual meeting held on May 12, 2026, Arrow Electronics shareholders elected eight directors to one‑year terms, ratified Ernst Young as the independent auditor for 2026 and approved, on an advisory basis, the compensation of the compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.