Overview

• US electronics distributor's Q1 revenue rose 39%, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company repurchased $25 mln of shares in Q1

Outlook

• Arrow expects Q2 2026 consolidated sales of $9.15 bln to $9.75 bln

• Company forecasts Q2 2026 diluted EPS of $3.91 to $4.11; non-GAAP EPS of $4.32 to $4.52

• Arrow sees Q2 2026 average tax rate of 23% to 25% and interest expense of about $60 mln

Result Drivers

• OPERATIONAL MOMENTUM - Co said both Global Components and ECS segments saw continued operational momentum, supported by an accelerated recovery across geographies and industry verticals

• STRONG REGIONAL GROWTH - Americas components sales rose 47%, EMEA components up 32%, and Asia-Pacific components up 37% year over year; EMEA ECS sales up 46%, Americas ECS up 30%

• FOREIGN CURRENCY IMPACT - Changes in foreign currencies increased sales by $274 mln and EPS by $0.07 compared to Q1 2025

Company press release: ID:nBw63bW9Ka

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• Wall Street's median 12-month price target for Arrow Electronics Inc is $140.00, about 27% below its May 6 closing price of $191.85

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

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