Arrow Electronics, Inc. (ARW) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Arrow Electronics, Inc. (ARW) Technology Profile & Competitive Position

Arrow Electronics, Inc. distributes electronic components and enterprise computing solutions, operating through Global Components and Global Enterprise Computing Solutions segments. The company serves original equipment manufacturers, value-added resellers, and managed service providers across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions, positioning itself as a key link in the technology supply chain.

What Is the Investment Thesis for ARW?

Arrow Electronics, Inc. presents a notable research candidate due to its strategic position in the technology supply chain and its diversified business model. With a market capitalization of $10.9B and a P/E ratio of 15.22, the company demonstrates financial stability. Key value drivers include the increasing demand for electronic components and enterprise computing solutions, driven by technological advancements and digital transformation initiatives. The company's ability to provide value-added services, such as engineering support and logistics, enhances customer relationships and fosters long-term growth. However, investors should be aware of potential risks, including economic downturns and supply chain disruptions, which could impact the company's financial performance. The company's beta of 0.99 indicates moderate volatility relative to the market.

Based on FMP financials and quantitative analysis

ARW Key Highlights

Arrow Electronics operates in two segments: Global Components and Global Enterprise Computing Solutions, providing diversification and resilience.

• The company's gross margin of 11.3% reflects its ability to manage costs effectively in a competitive market.
• Arrow Electronics serves a diverse customer base, including OEMs, VARs, and MSPs, reducing reliance on any single customer segment.
• The company's global presence across the Americas, Europe, the Middle East, Africa, and the Asia Pacific provides access to diverse markets and growth opportunities.
• Arrow Electronics' P/E ratio of 15.22 suggests a reasonable valuation compared to its earnings.

Who Are ARW's Competitors?

ARW is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ARW's Key Strengths?

Global presence and extensive distribution network.

• Diversified product and service offerings.
• Strong relationships with leading technology manufacturers.
• Value-added services enhance customer relationships.

What Are ARW's Weaknesses?

Relatively low profit margin compared to some competitors.

• Exposure to economic cycles and supply chain disruptions.
• Dependence on key suppliers for product availability.
• Intense competition in the technology distribution industry.

What Could Drive ARW Stock Higher?

Continued expansion in the Asia Pacific region, driven by increasing demand for electronic components.

• Growing adoption of IoT solutions and cloud computing services.
• Potential strategic acquisitions to expand product portfolio and market share.
• Increased focus on value-added services to differentiate from competitors.

What Are the Key Risks for ARW?

Financial-distress signal — its Altman Z-Score of 1.69 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $6.0M recently.
• Economic downturns and reduced demand for electronic components.
• Supply chain disruptions and component shortages.
• Increased competition from online retailers and direct sales models.
• Rapid technological advancements and obsolescence of existing products.

What Are the Growth Opportunities for ARW?

• Expansion in the Asia Pacific Region: The Asia Pacific region presents a significant growth opportunity for Arrow Electronics, driven by increasing demand for electronic components and enterprise computing solutions in countries like China and India. The region's rapidly growing economies and increasing adoption of technology create a favorable environment for Arrow to expand its market share and revenue. This expansion can be achieved through strategic partnerships, acquisitions, and investments in local infrastructure. The market size for electronic components in the Asia Pacific region is projected to reach $500 billion by 2028.
• Focus on IoT Solutions: The Internet of Things (IoT) is driving demand for a wide range of electronic components and enterprise computing solutions, creating a significant growth opportunity for Arrow Electronics. By focusing on providing comprehensive IoT solutions, including sensors, connectivity, and data analytics, Arrow can capitalize on this growing market. The company can leverage its existing relationships with OEMs and VARs to promote its IoT offerings and expand its customer base. The global IoT market is expected to reach $1.5 trillion by 2027.
• Cloud Computing Solutions: The increasing adoption of cloud computing is driving demand for datacenter, cloud, security, and analytics solutions, creating a significant growth opportunity for Arrow Electronics' Global Enterprise Computing Solutions segment. By offering a comprehensive suite of cloud-based solutions and services, Arrow can help its customers migrate to the cloud, optimize their cloud infrastructure, and enhance their cybersecurity posture. The company can also leverage its partnerships with leading cloud providers to expand its cloud offerings.
• Strategic Acquisitions: Arrow Electronics can pursue strategic acquisitions to expand its product portfolio, enhance its technological capabilities, and increase its market share. By acquiring companies with complementary products and services, Arrow can strengthen its competitive position and accelerate its growth. Potential acquisition targets include companies specializing in niche electronic components, IoT solutions, and cloud computing services. Successful acquisitions can provide Arrow with access to new markets, technologies, and customer relationships.
• Value-Added Services: Arrow Electronics can differentiate itself from its competitors by offering value-added services, such as engineering support, warehousing, and logistics. These services can help customers streamline their operations, reduce costs, and improve their time-to-market. By providing customized solutions and personalized support, Arrow can build stronger relationships with its customers and increase customer loyalty. The company can also leverage its expertise in supply chain management to optimize its logistics network and reduce delivery times.

What Are ARW's Competitive Advantages?

• Global distribution network provides access to diverse markets and customers.
• Strong relationships with leading technology manufacturers.
• Value-added services enhance customer loyalty and differentiation.
• Broad product portfolio caters to a wide range of customer needs.

What Does ARW Do?

Founded in 1935 and headquartered in Centennial, Colorado, Arrow Electronics, Inc. has evolved into a leading global provider of technology products, services, and solutions. Initially a retailer of radio parts, the company strategically transformed its business model to focus on the distribution of electronic components and enterprise computing solutions. Today, Arrow operates through two primary segments: Global Components and Global Enterprise Computing Solutions. The Global Components segment focuses on marketing and distributing a wide array of semiconductor products, passive, electro-mechanical, and interconnect products, as well as computing and memory products. The Global Enterprise Computing Solutions segment offers computing solutions, including datacenter, cloud, security, and analytics solutions, complemented by services such as engineering support, warehousing, and training. Arrow serves a diverse customer base, including original equipment manufacturers (OEMs), value-added resellers (VARs), managed service providers (MSPs), and contract manufacturers, providing them with the necessary components and solutions to drive innovation and efficiency in their respective industries. With a presence spanning the Americas, Europe, the Middle East, Africa, and the Asia Pacific, Arrow Electronics plays a crucial role in the global technology ecosystem.

What Products and Services Does ARW Offer?

• Distributes semiconductor products and related services.
• Markets passive, electro-mechanical, and interconnect products.
• Provides computing and memory products.
• Offers datacenter, cloud, security, and analytics solutions.
• Provides engineering and integration support.
• Offers warehousing and logistics services.
• Provides marketing resources.
• Offers authorized hardware and software training.

How Does ARW Make Money?

• Distributes electronic components and enterprise computing solutions to industrial and commercial users.
• Generates revenue through sales of products and services.
• Provides value-added services to enhance customer relationships and drive sales.
• Operates through two segments: Global Components and Global Enterprise Computing Solutions.

What Industry Does ARW Operate In?

Arrow Electronics operates within the technology distribution industry, which is characterized by rapid technological advancements and evolving customer demands. The industry is experiencing growth driven by increased demand for electronic components and enterprise computing solutions, fueled by trends such as IoT, cloud computing, and artificial intelligence. The competitive landscape includes companies like Ingram Micro Holding Corporation and Semtech Corporation, each vying for market share by offering differentiated products and services. Arrow's focus on value-added services and its global presence position it favorably within this dynamic industry.

Who Are ARW's Key Customers?

• Original equipment manufacturers (OEMs)
• Value-added resellers (VARs)
• Managed service providers (MSPs)
• Contract manufacturers
• Other commercial customers

Company Profile

Arrow Electronics, Inc. operates in the Technology Distributors industry within the Technology sector. It is headquartered in Centennial, US. The company is led by CEO William F. Austen. ARW has traded publicly since 1980.

Arrow Electronics, Inc. Financial Trajectory

Arrow Electronics, Inc. (ARW) reported $9.99B in revenue for Q2 FY2026, reflecting 5.5% growth compared to the prior quarter. The company recorded net income of $272.7M, with diluted EPS of $5.26. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Technology company. Across the four most recent quarters, ARW averaged $3.91 in diluted EPS.

How Arrow Electronics, Inc. Is Valued

Arrow Electronics, Inc. carries a market capitalization of $10.9B, placing it in the large-cap category. Analyst price targets span from $175.00 to $250.00, with a consensus of $225.00. At the current price of $213.44, that implies approximately 5% upside potential. Relative to its peer group, ARW's quantitative score of 75/100 is above the peer average of 58/100.

Return on equity for Arrow Electronics, Inc. stands at 11.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.0%, showing how much profit it generates from its asset base. ARW trades at a trailing price-to-earnings ratio of 15.22, below the Technology sector average of ~32.70x. Its free cash flow yield is 3.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.24 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.6%, the inverse of the P/E and a quick read on earnings relative to price.

Arrow Electronics, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.69 places it in the distress zone, a signal of elevated financial risk.

Arrow Electronics, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 22.8% above estimates on average.

Over the past six months, Arrow Electronics, Inc. insiders filed 26 SEC Form 4 transactions — 8 sales and 18 purchases. On net that is roughly 19K shares disposed (about $6.0M), a signal worth weighing alongside the fundamentals.

ARW Financials

ARW Latest News

ARW Analyst Consensus

ARW MoonshotScore

ARW Technology Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources