ARW earnings analysis
What we found in ARW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Arrow Electronics reported a strong Q1 2026 with revenues of $9.47 billion, up 39% year-over-year, and EPS of $4.55, significantly exceeding expectations. Both segments—Global Components and Global ECS—showed robust growth, driven by strong demand particularly related to AI. Management indicates continued positive momentum in the following quarters.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 39% Year-Over-Year
- Total revenue increased to $9.47 billion from $6.81 billion, reflecting a 39% growth year-over-year.
- Record EPS Performance
- Earnings per share rose to $4.55, up 201.3% from $1.51 in the prior year.
- Improved Operating Income Margin
- Operating income margin improved to 3.8%, up from 2.3% last year, driven by strong sales growth.
- Segment Expansion Driven by AI
- Global Components and Global ECS both reported revenue growth of approximately 39%, bolstered by AI-related demand.
- Strong Operating Cash Flow
- Net cash from operating activities was $699.8 million, a significant increase from $351.7 million in Q1 2025.
- Reduced Long-Term Debt
- Long-term debt decreased to $2.35 billion from $3.09 billion, reflecting a more favorable capital structure.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Supplier Mix Impacting Gross Margins
- Global ECS experienced a decline in gross margins due to unfavorable supplier mix and a $21.7 million loss from a non-cancellable contract.
- Geopolitical and Economic Uncertainty
- Management noted that the ongoing geopolitical tensions and economic uncertainty may negatively affect future demand.
- Potential Future Losses on Contracts
- The company may see additional losses from underperforming contracts, as indicated in their non-cancellable agreements.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.55
- Gross margin
- 11.5%
- Operating margin
- 3.8%
- Segment
- Global Components: $6,640 million
- Segment
- Global ECS: $2,833 million
What they said about what is next.
Management expects Q2 2026 revenue between $9.15 billion and $9.75 billion, with EPS between $3.91 and $4.11.
The filing reads better than the one before it.
What came before.
- 10-K · February 11, 2026
- Arrow Electronics reported a stronger top- and bottom-line 2025 versus 2024 with quarterly revenue accelerating to $8.75B in Q4 2025 and full-year revenue of about $30.85B (sum of quarters). The company remains…
- 10-Q · October 30, 2025
- Arrow Electronics reported strong third-quarter results, with revenue and EPS exceeding analyst estimates. The company experienced modest revenue growth year-over-year but faces challenges in margins and cash flow…
- 10-Q · July 31, 2025
- Arrow Electronics reported quarterly sales of $7,579,947 (thousands) and diluted EPS of $3.59 for the quarter ended June 28, 2025. Revenue rose versus Q2 2024, but operating income and gross margin compressed versus the…
- 10-Q · May 1, 2025
- Arrow Electronics reported Q1 sales of $6,814,017,000, down $110,243,000 (≈1.6%) vs. Q1 2024, with gross profit falling to $773,992,000 (gross margin ~11.36%) and operating income down to $158,553,000 (operating margin…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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