Arrow Electronics Inc

Arrow Electronics is a distributor, a middleman between the companies that make technology and the businesses that use it. Founded in New York in 1946, it purchases electronic parts and computing products from suppliers and resells them, with services, to thousands of business customers in more than 85 countries. Many customers need volumes or delivery schedules that manufacturers don't offer directly. It is a high-volume, thin-margin trade: in 2025, revenue was about $30.9 billion, but net profit was just 1.9% of sales.

The larger segment, global components, made up about 70% of 2025 sales. It supplies parts to OEMs (original equipment manufacturers, which build finished products) and EMS providers (contract factories that assemble electronics for others). Semiconductors account for about 72% of the segment's sales, and basic parts such as capacitors, resistors, switches and connectors for about 16%. Arrow also earns fees for supply-chain management, design engineering and integration work.

Global ECS (enterprise computing solutions), about 30% of sales, sells software, storage, security and computing hardware to VARs (value-added resellers) and MSPs (managed service providers, which run IT for other businesses). Its ArrowSphere platform helps them offer cloud subscriptions. About 66% of 2025 sales came from outside the U.S.; China and Hong Kong made up 14.3% and Germany 10.2%. No customer topped 2% of sales.

• In Q2 FY2026 (ended Jul 4, 2026), revenue was $9.99B, up 31.8% from a year earlier, and net income was $272.7M (+45.3%).
• For fiscal 2025, revenue was $30.85B (+10.5% year over year; +1.5% a year from FY2020 to FY2025) with a 1.9% net margin.

• Over FY2021–FY2025: $3.16B in buybacks and $0.00 in dividends.
• The company pays no regular dividend.
• Shares outstanding changed -26.9% from Oct 28, 2021 to Jul 30, 2026.

Rank among 1514 US companies

Market value at each year end

Arrow Electronics’s market value went from $6.39B at the end of 2016 to $11.35B on Oct 28, 2026, up 78%; since the end of 2025 it is up 100%.

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 7 sales ($10.8M).

Large shareholders (13G filings)

ETFs with the most weight in ARW

1. Suppliers can cancel deals on short notice. Most supplier agreements are non-exclusive and can be canceled on roughly 30 to 90 days' notice. One supplier made up about 8% of 2025 sales. Losing a big supplier, or suppliers selling direct, would hurt.
2. Razor-thin margins leave little room for error. Arrow competes with other distributors and even its own suppliers, creating price pressure. With only 2.7 cents of operating profit per sales dollar in 2025, small price cuts can erase much of its earnings.
3. Chip and IT cycles can strand inventory. Semiconductor and IT hardware sales rise and fall in cycles. If Arrow overestimates demand, unsold stock can lose value. Supplier price protection covered about 56% of inventories as of December 31, 2025, leaving the rest exposed.
4. No long-term contracts and little visibility. Nearly all sales are made order by order. Arrow says it can see only a few months ahead, so a sudden drop in orders can hit results quickly.
5. Heavy exposure to tariffs and trade disputes. About 66% of 2025 sales came from outside the U.S., including 14.3% from China and Hong Kong. Tariffs, U.S.-China trade disputes, export rules and currency swings can all cut into results.
6. Debt and loan terms limit flexibility. As of July 4, 2026, Arrow had about $2.2 billion of debt and $245 million of cash. Loan rules (covenants) restrict some decisions, and tight credit could squeeze the cash it needs to operate.

• Oct 15, 2026 Executive or board change
• Sep 4, 2026 Major agreement signed; New debt or financial obligation
• Aug 6, 2026 Quarterly results released; Executive or board change; Investor presentation or announcement
• May 13, 2026 Bylaws or fiscal year changed; Shareholder vote results
• May 7, 2026 Quarterly results released
• Feb 5, 2026 Quarterly results released
• Oct 30, 2025 Quarterly results released

Arrow pays no dividend and paid none from fiscal 2021 through fiscal 2025, so the stock provides no regular income. It returns cash through share buybacks instead: about $3.2 billion over those five years. The share count fell about 27% between October 2021 and July 2026. Buybacks raise each share's slice of profits but pay holders no cash, and they have slowed, from about $1.05 billion in 2022 to about $162 million in 2025.

The stock has fallen hard in downturns. It dropped 73% between October 2007 and November 2008, then took more than two years to recover. It fell about 49% in the 2020 COVID crash, recovering in about 5.5 months, and about 33% in the 2022 bear market, recovering in about 8 months. Retirees drawing on their shares for spending could end up cashing out at deep losses. A single stock like Arrow carries more risk than a diversified fund.