Arrow Electronics Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Arrow Electronics ARW reported fourth-quarter earnings of $4.39 per share, beating the Zacks Consensus Estimate by 23.66%. The bottom line increased 48% year over year.

In the fourth quarter, ARW reported revenues of $8.75 billion, up 20% year over year. The figure surpassed the Zacks Consensus Estimate by 7.97%. At constant currency, revenues increased 16.4% year over year.

Arrow Electronics, Inc. Price, Consensus and EPS Surprise

Arrow Electronics, Inc. price-consensus-eps-surprise-chart | Arrow Electronics, Inc. Quote

ARW's Q4 Revenue Details

In the fourth quarter of 2025, Global Component sales increased 22% year over year on a reported basis and 19.5% on a constant currency basis to $5.88 billion.

Region-wise, revenues from the Americas increased 22%, and the same from the Asia-Pacific region rose 26%, respectively, year over year, on a reported basis. EMEA revenues increased 16% year over year on a reported basis and 6.7% at constant currency.

Global Enterprise Computing Solutions (ECS) revenues were $2.86 billion, which increased 16% year over year on a reported basis and 10.5% at constant currency.

Region-wise, the segment's revenues from the Americas and EMEA increased 7% and 24%, respectively, year over year, on a reported basis. At constant currency, Americas’ ECS increased 7.1% while EMEA ECS increased 13.2%.

ARW's Q4 Operating Details

Consolidated non-GAAP gross margin was 11.5%, down 20 basis points on a year-over-year basis. The Global Components segment reported a non-GAAP gross margin of 10.9%, down 50 basis points year over year, whereas the Global ECS segment saw its margin contract 40 basis points to 12.6% year over year.

The non-GAAP operating income from Global Components and Global ECS was $219 million and $189 million, respectively. Global Components' operating income increased 26% year over year, while Global ECS increased 17% year over year.

Arrow Electronics' non-GAAP operating income rose 23% year over year to $336 million in the fourth quarter of 2025. The non-GAAP operating margin was flat on a year-over-year basis at 3.8%.

Balance Sheet & Cash Flow

As of Dec. 31, 2025, cash and cash equivalents totaled $306 million, which increased from $214 million as of Sept. 27, 2025.

The long-term debt was $3.08 billion, up from $3.05 billion at the end of the previous quarter. In the reported quarter, cash flow from operations was $200 million compared with $64 million in the third quarter of 2025.

In the fourth quarter of 2025, ARW repurchased $50 million of shares.

ARW Offers Q1 2026 Guidance

For the first quarter of 2026, sales are estimated between $7.95 and $8.55 billion.

Global Components sales are projected between $5.75 and $6.15 billion. Global ECS sales are anticipated to be between $2.20 and $2.40 billion.

Interest expenses are expected to be approximately $60 million.

ARW anticipates non-GAAP earnings of $2.70-$2.90 per share.

Changes in foreign currencies are expected to increase sales by approximately $263 million and earnings per share by 10 cents compared to the first quarter of 2025.

ARW’s Zacks Rank & Other Stocks to Consider

ARW currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks ANET, Advanced Energy AEIS and Amkor Technology AMKR. 

While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy currently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Arista Networks have declined 7.7% in the trailing six-month period. It is set to report fourth-quarter 2025 results on Feb. 12

Shares of Advanced Energy have surged 75.8% in the trailing six-month period. The company is slated to report fourth-quarter 2025 results on Feb. 10.

Amkor Technology shares have surged 93.5% in the trailing six-month period. AMKR is set to report fourth-quarter 2025 results on Feb. 9.

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This article originally published on Zacks Investment Research (zacks.com).

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