Arrow Electronics Surpasses Forecasts with Robust Year-End Performance

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Arrow Electronics has delivered a powerful finish to its fiscal year, with fourth-quarter results comfortably exceeding market projections. The distributor of electronic components and enterprise computing solutions reported substantial growth in both revenue and profitability, demonstrating resilient operational strength.

The company announced its Q4 and full-year 2025 results, revealing a quarterly revenue surge to $8.75 billion. This figure represents a 20.1% year-over-year increase and notably outperformed the analyst consensus estimate of approximately $8.1 billion.

Profitability metrics were equally impressive. Adjusted earnings per share (Non-GAAP) saw a significant 48% jump, reaching $4.39. For the entire 2025 fiscal year, total revenue hit $30.9 billion, marking a 10% growth compared to the previous year.

Broad-Based Segment Growth and Shareholder Returns

This expansion was driven by strength across Arrow's core business divisions. The Global Components segment achieved Q4 revenue of $5.9 billion, a 22% increase. Meanwhile, the Global Enterprise Computing Solutions (ECS) unit also posted solid gains, with revenue rising 16% to $2.9 billion.

Alongside its operational achievements, the company maintained its commitment to shareholder value. During the final quarter, Arrow allocated roughly $50 million to repurchase its own shares. This brought the total buyback figure for the full year to $150 million. The company also generated a robust $200 million in operating cash flow in Q4.

Guidance for the Coming Quarter

Looking ahead, management has provided its outlook for the first quarter of fiscal 2026, which concludes on March 31. The company anticipates consolidated revenue to land between $7.95 billion and $8.55 billion. Adjusted earnings per share are forecast to be in the range of $2.70 to $2.90.

This initial quarterly projection is expected to receive a favorable currency translation benefit, estimated to contribute approximately $263 million to revenue. The guidance assumes an effective tax rate between 23% and 25%. Arrow's continued trajectory will largely depend on the prevailing trends in global IT investment and component demand, which remain the primary drivers for its business.