Arrow Electronics (NYSE:ARW) Posts Earnings Results, Beats Expectations By $1.16 EPS

Arrow Electronics (NYSE:ARW) posted its earnings results on Thursday. The technology company reported $6.22 EPS for the quarter, topping analysts’ consensus estimates of $5.06 by $1.16, FiscalAI reports. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%. The business had revenue of $10.72 billion during the quarter, compared to analyst estimates of $10.07 billion. During the same quarter last year, the company earned $2.41 EPS. The company’s quarterly revenue was up 39.0% compared to the same quarter last year. 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 Down 12.7%

Shares of NYSE:ARW traded down $25.72 during trading on Thursday, reaching $176.91. The company’s stock had a trading volume of 1,103,502 shares, compared to its average volume of 609,445. The stock has a market capitalization of $9.00 billion, a PE ratio of 11.30, a price-to-earnings-growth ratio of 0.31 and a beta of 1.20. Arrow Electronics has a 12 month low of $101.79 and a 12 month high of $249.43. The firm’s 50 day simple moving average is $219.06 and its two-hundred day simple moving average is $191.69. The company has a current ratio of 1.22, a quick ratio of 1.01 and a debt-to-equity ratio of 0.29.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ARW. Weiss Ratings raised shares of Arrow Electronics from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Wells Fargo & Company lifted their price objective on Arrow Electronics from $175.00 to $200.00 and gave the company an “underweight” rating in a research report on Friday, August 7th. Zacks Research downgraded shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a report on Monday, October 26th. Raymond James Financial reaffirmed an “outperform” rating and set a $250.00 price objective on shares of Arrow Electronics in a report on Friday, August 7th. Finally, Truist Financial dropped their price target on Arrow Electronics from $260.00 to $250.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Arrow Electronics presently has a consensus rating of “Hold” and a consensus target price of $233.25.

Arrow Electronics News Summary

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

• Positive Sentiment: Third-quarter EPS was $6.22, beating the cited consensus estimate of $5.06, while revenue of $10.72 billion topped estimates of $10.07 billion and rose 39% year over year. The company described the quarter as a record, with momentum in both Global Components and Global Enterprise Computing Solutions. Arrow Electronics reports record quarterly revenue and EPS
• Positive Sentiment: Fourth-quarter guidance substantially exceeded consensus: Arrow forecast EPS of $7.00–$7.20 versus $5.80 expected, and revenue of $11.6–$12.2 billion versus $10.5 billion expected. The stronger outlook signals management expects continued earnings and sales momentum. Arrow Electronics Q3 profit jumps, issues Q4 outlook
• Negative Sentiment: Despite the earnings beat and upbeat outlook, ARW traded lower during the session. The supplied coverage does not specify what drove the weaker market reaction, so the price move may reflect factors beyond the reported results.

Insiders Place Their Bets

In other Arrow Electronics news, SVP Carine Jean-Claude sold 1,000 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $209.85, for a total transaction of $209,850.00. Following the transaction, the senior vice president owned 11,626 shares in the company, valued at $2,439,716.10. The trade was a 7.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.80% of the stock is owned by company insiders.

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.