Revenue and Earnings Performance
Arrow Electronics delivered revenue above the midpoint of guidance and earnings per share above the high end of guidance for Q3 2025. Sales for the third quarter increased by $890 million year-over-year to $7.7 billion, marking a 13% increase versus the prior year.
Strategic Expansion in ECS Business
The ECS business experienced a 15% sales increase year-over-year to $2.2 billion, with ECS billings reaching $5.2 billion, up 14% year-over-year. The segment is growing through strategic outsourcing engagements and expanding its addressable market.
Resolution of Compliance Issue in China
Arrow's Chinese subsidiaries were placed on a U.S. Department of Commerce entity list but were removed after ten days, allowing resumption of normal business activities.
Growth in APAC and Key Markets
The APAC region showed significant growth with a 12% sequential increase in sales, driven by industrial, compute, consumer, and EV momentum in transportation sectors.
Positive Outlook for 2026
Indicators suggest a gradual recovery in the global components market. Leading indicators such as book-to-bill ratios remain above parity across all regions.