Description

Arrow Electronics: From Distributor to Strategic Partner—The High-Margin Transformation Underway!

Arrow Electronics delivered a robust performance in its fourth quarter and full-year 2025 results. The company’s global operations, spanning electronic components and enterprise computing solutions (ECS), showcased significant growth and adaptability, both of which are critical in a gradually recovering market environment. Revenue increased by 20% year-over-year, and non-GAAP EPS surged by 48%, exceeding market expectations. On the positive side, Arrow’s global components segment experienced increased demand, recovering from a cyclical downturn. This was evident from the improved book-to-bill ratios and backlog growth across all operating regions, with particular strength in sectors such as industrial, transportation, and aerospace. The ECS segment also performed well, driven by secular growth trends in cloud and AI demand. Notably, Arrow has made strides in expanding its value-added services, which now comprise approximately 30% of its operating income.