Arrow Electronics(NYSE) ARW

Arrow helps manufacturers and service providers find and use the electronic parts they need to build products. The company also manages large-scale computer and software systems for businesses. These services help industrial and commercial customers get new technology to market faster.

What Arrow Sells

• Global Components: Markets and distributes semiconductor products and electronic parts to manufacturers; accounted for 70% of sales in 2025.
• Enterprise Computing Solutions: Provides data center, cloud, and security software and hardware to resellers and service providers; represented 30% of sales in 2025.
• Supply Chain Services: Offers logistics, warehousing, and data analytics to help customers manage complex electronics manufacturing.
• Engineering and Design: Provides technical support and software development to help companies create new electronic devices.
• ArrowSphere: Operates a digital marketplace that helps businesses manage and scale their cloud-based software subscriptions.

A History of Growth

• Launched the Operating Expense Efficiency Plan in 2024 to improve global operational efficiency and reduce costs.
• Established a strategic partnership through ArrowSphere to help suppliers increase their software subscription adoption and utilization.
• Expanded international reach through 39 distribution and value-added centers serving customers in over 85 countries.
• Navigated a temporary trade restriction in 2025 after BIS added then removed three Chinese subsidiaries from its Entity List.

How Arrow Stands Out

Arrow acts as a global technology aggregator, connecting over 22,000 employees across 52 countries to bridge the gap between technology suppliers and industrial users. The company maintains protection for approximately 56% of its inventory through agreements that shield against price drops or parts becoming outdated.

Financial Performance Highlights

• Revenue reached $8.7 billion in Q4 2025, up 20.1% from the previous year.
• Net income rose to $194.6 million in Q4 2025, a 96.2% increase compared to Q4 2024.
• Operating income grew to $335.3 million in Q4 2025, up 71.9% year-over-year.
• Free cash flow was $172.6 million in Q4 2025, down 43.2% from the $303.9 million reported in Q4 2024.

Bottom Line

Arrow has transformed from a traditional parts distributor into a global provider of complex supply chain and computing solutions. This evolution allows the company to support the entire lifecycle of technology products for thousands of commercial customers.