Arrow Electronics (ARW)
NYSEInformation TechnologyTechnology DistributorsSnapshot 2026-09-04
$215.97+2.42%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyTechnology DistributorsSnapshot 2026-09-04
Warn: Primary pillar under pressure — EPS at or above $4.42 in Q2 FY2026: EPS $5.45 vs $4.42 target.
Arrow Electronics grew revenue from $6.81B to $9.47B in one year. Profit rose strongly with operating income doubling to $361.6M. The company keeps improving gross profit and managing costs well. Its valuation is cheap compared to peers, with a PE of 13.4 versus 45.4.
The recent sharp selloff shows investor concern despite past beats. Guidance is soft, signaling possible slowing growth. Profit margins and revenue growth could weaken if market conditions worsen.
The price sits about 20% below our fair value near $245. Analysts expect about 14% revenue growth, which is reasonable. Our view is slightly more optimistic than the Street.
Breaks if: EPS guidance falls below $4.32 in Q2 FY2026
Breaks if: Gross profit falls below $900 million quarterly
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue and operating income growth. The current thesis state remains intact, supported by recent strong financial results and management's commitment to key priorities.
The market currently prices ARW as cheap compared to its peers, with a notable expectations gap. This suggests that investors may not fully reflect the company's recent strong performance and growth potential.
Management has demonstrated robust execution in increasing revenue and operating income, with recent results showing significant year-over-year growth. While there is a low probability of missing earnings expectations, the company's recent history of erratic earnings surprises warrants cautious observation.
The long-term thesis hinges on several factors, including the potential for the Federal Reserve to cut interest rates and the performance of sector bellwethers like SNX, AVT, and CNXN. Additionally, any negative guidance from management could impact investor sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Additionally, new growth opportunities align with revenue growth objectives. There are no significant threats noted at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on expanding gross profit through higher-margin, value-added offerings and operational efficiency.
Stated as a priority in 3 of last 3 quarters. Gross profit increased from $803 million in 2025-Q4 to $1.125 billion in 2026-Q2, reflecting a 40% increase. This growth aligns with management's focus on higher-margin offerings and operational efficiency, showing delivery on the priority.
“Gross profit of $1.125 billion, up 32% year-over-year.”
“Gross profit of $1.090 billion, up from $0.774 billion prior year.”
“Gross profit of $1.009 billion, up from $0.803 billion prior year.”
Breaks if: Operating income falls below $300 million over next 4 quarters
Drive operating income growth through operational momentum and disciplined execution in both Global Components and ECS segments.
Stated as a priority in 3 of last 3 quarters. Global Components operating income grew from $219 million in 2025-Q4 to $396 million in 2026-Q2, a 112% increase year-over-year. Operating income improvements reflect disciplined execution and operational momentum, indicating the priority is delivering.
“Global Components operating income increased 112% year-over-year.”
“Global Components operating income increased 112% year-over-year.”
“Global Components operating income increased 87% year-over-year.”
Breaks if: Revenue falls below $9.15 billion in Q2 FY2026
Focus on accelerating profitable revenue growth across Global Components and Global Enterprise Computing Solutions segments.
Stated as a priority in 3 of last 3 quarters. Total revenue grew from $8.7 billion in 2025-Q4 to $10.0 billion in 2026-Q2, a 32% increase year-over-year. Global Components sales increased 39% year-over-year in 2026-Q2. The trajectory is delivering with consistent double-digit revenue growth across quarters.
“Arrow delivered another strong quarter, total revenue of $10.0 billion, up 32% year-over-year.”
“First quarter marked a strong start with total revenue up 39% year-over-year.”
“Fourth-quarter sales of $8.7 billion, up 20%, above high end of guidance.”
Overall, ARW's strong financial trajectory and management execution provide a solid foundation for the next few years. Not investment advice.