Arrow Electronics, Inc. (ARW) AI Stock Analysis

Arrow Electronics, Inc. distributes products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company operates two main segments: Global Components and Global Enterprise Computing Solutions. Global Components markets and distributes semiconductor products, passive components, electro-mechanical items, connectors, and memory products. Global Enterprise Computing Solutions delivers computing hardware, software, and services for datacenters, cloud environments, security, and analytics. It serves original equipment manufacturers, value-added resellers, managed service providers, and contract manufacturers.

Between FY2021 and FY2025, Arrow Electronics' revenue moved from $34.48B to $30.85B, reflecting a 5-year revenue CAGR of 1.5%. After revenue contracted 10.8% in FY2023 and 15.7% in FY2024, it rebounded 10.5% in FY2025. Annual net income peaked at $1.43B in FY2022 before dropping to $392.1M in FY2024 and recovering to $571.3M in FY2025, with an operating margin of 3.0%. For the trailing twelve months, revenue reached $35.92B with a profit margin of 2.3% and an operating margin of 4.0%. In the latest quarter ended June 30, 2026, quarterly revenue grew 31.8% year-over-year, while quarterly earnings grew 46.5%.

As of June 30, 2026, Arrow Electronics held $244.6M in cash and short-term investments against total debt of $2.17B, resulting in net debt of $1.93B. Shareholders' equity stood at $7.01B, supporting a debt-to-equity ratio of 0.31 and a current ratio of 1.22. Operating cash flow in FY2025 was $64.0M, while free cash flow was -$37.2M after capital expenditures of $101.3M. The company repurchased $161.7M of shares in FY2025, contributing to a 5-year share count reduction of 26.5%.

At a last close of $214.61, Arrow Electronics has a market capitalization of $10.92B and an enterprise value of $13.47B. The stock trades at a trailing P/E of 13.7x and a forward P/E of 5.0x, both below the median of its US-listed Technology peers of 28.1x and 18.8x, respectively. Its enterprise value-to-EBITDA multiple of 9.4x is also lower than the peer median of 16.6x. Over the past year, the stock returned 81.8%, outperforming the S&P 500 benchmark ETF return of 16.8%, while its 5-year return of 82.0% slightly trailed the S&P 500 return of 83.0%.

Wall Street coverage includes 1 Strong Buy, 1 Buy, 1 Hold, and 1 Strong Sell rating. The mean price target of $235.00 represents a 9.5% premium to the last closing price of $214.61. For the fiscal year ending December 31, 2026, analysts estimate revenue of $40.05B and EPS of $21.64, representing projected EPS growth of 96.3%. Arrow Electronics has beaten consensus EPS expectations in each of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.

This page is an AI-written research summary of Arrow Electronics, Inc. (ARW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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