Can Arrow Electronics Gain From New 240W USB-C PD 3.2 Design?

Arrow Electronics ARW shares have surged 30.1% in a year, underperforming the Zacks Computer and Technology sector’s appreciation of 36.1%.

The company’s expanding portfolio is expected to boost prospects. On March 4, 2026, Arrow Electronics and Infineon Technologies introduced a new 240W USB-C power reference design, called REF_ARIF240GaN, for battery-powered motor control applications that require high performance and energy efficiency in a compact size. 

The design supports USB Power Delivery (PD) 3.2 and works with Infineon’s new EZ-PD PMGI-B2 USB controller, which can deliver up to 240W of power. It includes built-in buck-boost functionality, assisting developers in adding high-power USB-C charging to their products. The system supports fast charging for lithium-ion battery packs with two to 12 cells. It simplifies product design and reduces the number of required components. For motor control, the design uses Infineon’s PSOC C3 microcontroller and 100V CoolGaN G5 transistors, enabling efficient motor performance in compact battery-powered devices. The above introduction by Arrow Electronics and Infineon Technologies could positively could potentially benefit Arrow Electronics by driving component sales and engineering services revenues.

Although the company did not announce an acquisition in the fourth quarter of 2025, management stated that acquisitions remain a key growth strategy. The company formed a notable partnership with Microsoft, where ARW was recognized as MSFT’s 2025 Distributor Partner of the Year. This recognition relates specifically to ARW’s ArrowSphere AI offerings, which include the ArrowSphere AI platform and the ArrowSphere Assistant.
 

                                  Arrow Electronics, Inc. Price and Consensus

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

Arrow Electronics highlighted its role as a technology ecosystem partner that connects technology vendors, software providers, channel partners and enterprise customers. The company helps partners to sell cloud services, manage subscriptions, deliver AI-enabled solutions and provide digital services through the ArrowSphere platform.

ARW’s Earnings Estimate Revision Shows Positive Trend

Arrow Electronics expects total revenues to be between $7.95 billion and $8.55 billion for the first quarter of 2026. 

The Zacks Consensus Estimate for first-quarter 2026 net sales is pegged at $8.26 billion, indicating a year-over-year increase of 21.22%. The consensus mark for the first-quarter earnings is pinned at $2.81 per share, up 13 cents over the past 30 days, indicating a year-over-year jump of 56.11%.

The Zacks Consensus Estimate for fiscal 2026 net sales is pegged at $33.68 billion, indicating a year-over-year increase of 9.15%. The consensus mark for the fiscal 2026 earnings is pinned at $13.24 per share, up 16 cents over the past 30 days, indicating a year-over-year jump of 20.15%.

Zacks Rank & Other Stocks to Consider

Arrow Electronics currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Advanced Energy Industries AEIS, Alps Electric APELY and Teradyne TER, which currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Advanced Energy Industries, Alps Electric and Teradyne are currently pegged at 19.3%, 38.8% and 27.3%, respectively. Shares of Advanced Energy Industries, Alps Electric and Teradyne are up 206.6, 28.1%, 246.3%, respectively, over the past 12 months.


 

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

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