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Arrow Electronics
(NYSE:ARW)
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Rating:69Neutral
Price Target:
$263.00
▲(29.84% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by improving financial performance (strong TTM cash flow, meaningfully reduced leverage, and an earnings rebound) and a constructive earnings outlook with strong recent execution and upbeat Q3 growth guidance. Technicals are supportive but not unequivocally bullish due to a slightly negative MACD, and valuation is reasonable on P/E but lacks dividend yield support in the provided data.
Positive Factors
Broad-Based Revenue Growth
The strong Q2 revenue increase demonstrates broad demand across Arrow’s distribution platform and confirms that recent growth is not dependent on a single product area. Sustained volume expansion can improve supplier relevance, customer relationships, and operating leverage over the next several quarters.
Negative Factors
Thin and Cyclical Profit Margins
Arrow’s distribution model produces structurally modest margins, leaving earnings sensitive to product mix, industry cycles, and changes in operating efficiency. The decline from stronger historical profitability indicates that current earnings improvement may not fully represent a durable, best-in-class margin profile.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-Based Revenue Growth
The strong Q2 revenue increase demonstrates broad demand across Arrow’s distribution platform and confirms that recent growth is not dependent on a single product area. Sustained volume expansion can improve supplier relevance, customer relationships, and operating leverage over the next several quarters.
Read all positive factors
Arrow Electronics Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue by broad regions (for example Americas, EMEA, APAC), indicating where the company is growing or contracting and exposing regional macro or trade risks that can materially affect top-line stability and future growth potential.
Breaks down revenue by broad regions (for example Americas, EMEA, APAC), indicating where the company is growing or contracting and exposing regional macro or trade risks that can materially affect top-line stability and future growth potential.
Data provided by:
The Fly
The FlyArrow Electronics (ARW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.60B
Dividend YieldN/A
Average Volume (3M)531.30K
Price to Earnings (P/E)14.5
Beta (1Y)1.05
Revenue Growth26.05%
EPS Growth76.95%
CountryUS
Employees22,230
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)15.79
Shares Outstanding50,905,422
10 Day Avg. Volume546,788
30 Day Avg. Volume531,300
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 Cap1.06
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda9.86
Forecast
1Y Price Target
$230.00Price Target Upside13.55% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)21.81
Revenue Forecast (FY)$40.04B
Arrow Electronics Business Overview & Revenue Model
Company Description
Arrow Electronics, Inc. provides a wide array of products, services, and strategic solutions to industrial and commercial clients across the Americas, Europe, the Middle East, Africa, and Asia Pacific who depend on electronic components and sophis...
How the Company Makes Money
Arrow makes money primarily by selling technology products and related services through distribution and value-added solutions. (1) Global Components revenue: Arrow purchases electronic components (e.g., semiconductors and related parts) from manu...
Arrow Electronics Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The quarter demonstrated robust, broad‑based revenue growth, substantial EPS and margin expansion, improved returns and balance sheet strength, driven by both components and ECS backlog growth and value‑added services. Notable strategic progress (new platforms, Gartner recognition, Microsoft distinctions) reinforces long‑term positioning. Near‑term negatives include a $27M ECS restructuring charge, partner agreement transitions with potential additional smaller charges, expected normalization of supply chain services profitability, and some inventory and technology lead‑time pressures. Overall, the positive operational and financial momentum and diversified growth drivers materially outweigh the manageable near‑term challenges.Positive Updates
Strong Revenue Growth
Total revenue of $10.0B in Q2 2026, up 32% year over year (30% on a constant currency basis), above guidance.
Negative Updates
ECS Contract Charge and Margin Impact
Took a charge of $27M in Q2 related to underperforming multiyear 'Beyond distribution' contracts with a strategic partner, which reduced ECS non‑GAAP operating margins by ~100 basis points YoY; company expects additional restructuring charges in H2 at a lower pace.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $10.0B in Q2 2026, up 32% year over year (30% on a constant currency basis), above guidance.
Read all positive updates
Company Guidance
For Q3 the company guided revenue of $9.6 billion to $10.2 billion (up about 28% year‑over‑year at the midpoint), with global components sales of $7.5 billion to $7.9 billion (roughly +5% sequential at the midpoint) and enterprise computing solutions sales of $2.1 billion to $2.3 billion (about +2% year‑over‑year at the midpoint, noting a comparison to a large partner addition last year); it expects a non‑GAAP diluted EPS of $4.83–$5.03, an effective tax rate of 23%–25%, interest expense of roughly $50 million, and cautioned that supply‑chain services profitability should normalize in Q3; the company also said components should perform at or above seasonal trends (Asia seasonally strong, EMEA typically weaker) and provided currency details in its earnings release.Arrow Electronics Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.92B | 30.85B | 27.92B | 33.11B | 37.12B | 34.48B |
| Gross Profit | 4.02B | 3.47B | 3.29B | 4.15B | 4.84B | 4.20B |
| EBITDA | 1.24B | 1.07B | 1.12B | 1.67B | 2.26B | 1.76B |
| Net Income | 811.61M | 571.27M | 392.07M | 903.50M | 1.43B | 1.11B |
Balance Sheet | ||||||
| Total Assets | 38.38B | 29.08B | 21.76B | 21.73B | 21.76B | 19.54B |
| Cash, Cash Equivalents and Short-Term Investments | 244.63M | 306.47M | 188.81M | 218.05M | 176.91M | 222.19M |
| Total Debt | 2.17B | 3.09B | 3.39B | 3.81B | 3.77B | 2.63B |
| Total Liabilities | 31.30B | 22.42B | 15.93B | 15.85B | 16.15B | 14.19B |
| Stockholders Equity | 7.01B | 6.58B | 5.76B | 5.81B | 5.55B | 5.28B |
Cash Flow | ||||||
| Free Cash Flow | 899.34M | -37.20M | 1.04B | 622.16M | -111.91M | 335.93M |
| Operating Cash Flow | 936.37M | 64.05M | 1.13B | 705.45M | -33.08M | 418.98M |
| Investing Cash Flow | -110.90M | 23.60M | -94.44M | -72.32M | -57.71M | -60.12M |
| Financing Cash Flow | -770.97M | -206.14M | -956.83M | -666.22M | 109.78M | -463.30M |
Arrow Electronics Technical Analysis
Positive
202.56
Price Trends
217.72
Positive
216.50
Positive
183.22
Positive
Market Momentum
4.89
Positive
52.65
Neutral
17.98
Positive
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 202.56 is below the 20-day moving average (MA) of 226.46, below the 50-day MA of 217.72, and above the 200-day MA of 183.22, indicating a bullish trend. The MACD of 4.89 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 17.98 is Positive, 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 26 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 | $2.34B | 24.36 | 10.40% | 0.81% | 3.23% | 14.66% | |
71 Outperform | $1.23B | 16.41 | 8.66% | ― | 6.09% | 21.23% | |
69 Neutral | $11.60B | 14.45 | 12.14% | ― | 26.05% | 76.95% | |
65 Neutral | $17.77B | 16.97 | 42.60% | 1.77% | 7.41% | 3.00% | |
64 Neutral | $21.81B | 16.51 | 14.94% | 0.69% | 24.10% | 77.90% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $8.17B | 24.43 | 6.77% | 1.43% | 24.47% | 47.08% |
* Technology Sector Average
ARW
Arrow Electronics
227.90
114.25
100.53%
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CNXN
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92.81
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SCSC
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60.93
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SNX
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273.37
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79.23%
CDW
CDW
142.17
-2.40
-1.66%
Arrow Electronics Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Arrow Electronics Expands North American Securitization Facility
Positive
Sep 4, 2026
On September 2, 2026, Arrow Electronics, Inc. amended its North American Asset Securitization Facility, which is governed by a Transfer and Administration Agreement originally dated March 21, 2001. The amendment extends the facility’s maturi...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Arrow Electronics Names New President and COO
Positive
Aug 6, 2026
Arrow Electronics announced on August 6, 2026, that Deidra (Dee) C. Merriwether will become president and chief operating officer effective September 8, 2026, bringing senior leadership experience from W.W. Grainger and Sears. Her compensation pac...
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.