Revenue growth accelerated to 39.0% in 2026Q1, though gross margins remain tightly constrained near the 11.1% level, reflecting limited pricing power.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 33.51B | 30.85B | 27.92B | 33.11B | 37.12B | 34.48B | 28.67B | 28.92B | 29.68B | 26.81B | 23.83B | 23.28B | 22.77B | 21.36B | 20.41B | 21.39B | 18.74B | 14.68B | 16.76B | 15.98B | 13.58B | 11.16B | 10.65B | 8.68B | 7.39B | 10.13B | 12.96B | 9.31B | 8.34B | 7.76B | 6.53B |
| Revenue Growth % | 20.49% | 10.49% | -15.66% | -10.82% | 7.68% | 20.24% | -0.84% | -2.56% | 10.68% | 12.54% | 2.33% | 2.25% | 6.61% | 4.67% | -4.61% | 14.11% | 27.65% | -12.39% | 4.85% | 17.73% | 21.61% | 4.87% | 22.66% | 17.44% | -27.03% | -21.85% | 39.16% | 11.6% | 7.48% | 18.81% | 10.39% |
| Cost of Goods Sold | 29.77B | 27.39B | 24.63B | 28.96B | 32.29B | 30.27B | 25.48B | 25.62B | 25.98B | 23.46B | 20.68B | 20.25B | 19.77B | 18.57B | 17.67B | 18.44B | 16.33B | 12.93B | 14.48B | 13.7B | 11.55B | 9.42B | 8.92B | 7.26B | 6.13B | 8.61B | 10.93B | 8.01B | 7.18B | 6.57B | 5.49B |
| COGS % of Revenue | - | 88.76% | 88.21% | 87.47% | 86.97% | 87.81% | 88.87% | 88.59% | 87.53% | 87.48% | 86.8% | 86.96% | 86.84% | 86.93% | 86.59% | 86.22% | 87.1% | 88.08% | 86.38% | 85.7% | 85.04% | 84.42% | 83.81% | 83.63% | 82.96% | 85.01% | 84.31% | 86.03% | 86.08% | 84.68% | 84.05% |
| Gross Profit | 3.75B | 3.47B | 3.29B | 4.15B | 4.84B | 4.2B | 3.19B | 3.3B | 3.7B | 3.36B | 3.14B | 3.04B | 3B | 2.79B | 2.74B | 2.95B | 2.42B | 1.75B | 2.28B | 2.29B | 2.03B | 1.74B | 1.72B | 1.42B | 1.26B | 1.52B | 2.03B | 1.3B | 1.16B | 1.19B | 1.04B |
| Gross Margin % | 11.18% | 11.24% | 11.79% | 12.53% | 13.03% | 12.19% | 11.13% | 11.41% | 12.47% | 12.52% | 13.2% | 13.04% | 13.16% | 13.07% | 13.41% | 13.78% | 12.9% | 11.92% | 13.62% | 14.3% | 14.96% | 15.58% | 16.19% | 16.37% | 17.04% | 14.99% | 15.69% | 13.97% | 13.92% | 15.32% | 15.95% |
| Gross Profit Growth % | - | 5.29% | -20.65% | -14.22% | 15.09% | 31.69% | -3.25% | -10.88% | 10.23% | 6.78% | 3.59% | 1.31% | 7.34% | 1.96% | -7.17% | 21.91% | 38.14% | -23.3% | -0.11% | 12.5% | 16.77% | 0.96% | 21.27% | 12.81% | -17.03% | -25.36% | 56.31% | 12.05% | -2.37% | 14.16% | 0.91% |
| Operating Expenses | 2.64B | 2.53B | 2.52B | 2.68B | 2.77B | 2.65B | 2.3B | 3.19B | 2.5B | 2.32B | 2.21B | 2.14B | 2.12B | 2B | 1.96B | 2B | 1.63B | 1.48B | 1.86B | 1.59B | 1.41B | 1.25B | 1.27B | 1.2B | 1.09B | 1.28B | 1.25B | 962.5M | 808.8M | 814.8M | 641.4M |
| OpEx % of Revenue | - | 8.19% | 9.04% | 8.09% | 7.46% | 7.67% | 8.01% | 11.03% | 8.41% | 8.64% | 9.28% | 9.2% | 9.29% | 9.39% | 9.63% | 9.33% | 8.72% | 10.07% | 11.08% | 9.93% | 10.41% | 11.18% | 11.95% | 13.81% | 14.78% | 12.68% | 9.64% | 10.34% | 9.69% | 10.49% | 9.82% |
| Selling, General & Admin | 2.49B | 2.39B | 2.22B | 2.42B | 2.57B | 2.44B | 2.09B | 2.22B | 2.31B | 2.16B | 2.05B | 1.99B | 1.96B | 1.87B | 1.85B | 1.89B | 1.56B | 1.31B | 1.61B | 1.52B | 1.36B | 1.2B | 1.21B | 1.11B | 1.02B | 1.16B | 1.16B | 866.9M | 756.8M | 712.2M | 604.4M |
| SG&A % of Revenue | - | 7.75% | 7.96% | 7.3% | 6.92% | 7.08% | 7.29% | 7.66% | 7.78% | 8.07% | 8.62% | 8.53% | 8.61% | 8.77% | 9.06% | 8.85% | 8.31% | 8.89% | 9.59% | 9.51% | 10.03% | 10.76% | 11.4% | 12.81% | 13.81% | 11.42% | 8.95% | 9.31% | 9.07% | 9.17% | 9.25% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 137.75M | 301.63M | 261.25M | 197.62M | 205.33M | 206.71M | 974.22M | -6.87M | 153.6M | 159.19M | -3M | 156.05M | -4.28M | 115.35M | 103.48M | 77.35M | 172.54M | -19.69M | 66.72M | 51.19M | 47.48M | 58.88M | 86.75M | 71.52M | 127.72M | 90.25M | 95.6M | 52M | 102.6M | 37M |
| Operating Income | 1.1B | 938.34M | 768.56M | 1.47B | 2.07B | 1.56B | 894.51M | 107.7M | 1.15B | 928.45M | 858.54M | 824.48M | 762.26M | 693.5M | 804.12M | 908.84M | 750.77M | 272.79M | 525.21M | 686.9M | 606.23M | 480.26M | 439.34M | 184.04M | 167.53M | 156.6M | 784.11M | 338.7M | 352.5M | 374.7M | 400.6M |
| Operating Margin % | 3.29% | 3.04% | 2.75% | 4.44% | 5.57% | 4.52% | 3.12% | 0.37% | 3.87% | 3.46% | 3.6% | 3.54% | 3.35% | 3.25% | 3.94% | 4.25% | 4.01% | 1.86% | 3.13% | 4.3% | 4.47% | 4.3% | 4.13% | 2.12% | 2.27% | 1.55% | 6.05% | 3.64% | 4.22% | 4.83% | 6.13% |
| Operating Income Growth % | - | 22.09% | -47.76% | -28.88% | 32.87% | 74.04% | 730.59% | -90.61% | 23.59% | 8.14% | 4.13% | 8.16% | 9.91% | -13.76% | -11.52% | 21.05% | 175.22% | -48.06% | -23.54% | 13.31% | 26.23% | 9.31% | 138.71% | 9.86% | 6.98% | -80.03% | 131.5% | -3.91% | -5.92% | -6.47% | -5.34% |
| EBITDA | 1.24B | 1.08B | 931.55M | 1.65B | 2.26B | 1.75B | 1.08B | 297.49M | 1.33B | 1.08B | 1.02B | 980.24M | 918.3M | 824.64M | 919.47M | 1.01B | 828.13M | 339.81M | 594.5M | 777.16M | 677.21M | 538.28M | 505.01M | 257.96M | 246.31M | 288.76M | 883.59M | 417.3M | 407.6M | 421.8M | 440.1M |
| EBITDA Margin % | 3.7% | 3.49% | 3.34% | 4.99% | 6.08% | 5.08% | 3.78% | 1.03% | 4.49% | 4.04% | 4.27% | 4.21% | 4.03% | 3.86% | 4.51% | 4.73% | 4.42% | 2.31% | 3.55% | 4.86% | 4.99% | 4.82% | 4.74% | 2.97% | 3.33% | 2.85% | 6.82% | 4.48% | 4.88% | 5.43% | 6.73% |
| EBITDA Growth % | 38.17% | 15.52% | -43.62% | -26.76% | 28.76% | 61.68% | 264.24% | -77.7% | 23.28% | 6.32% | 3.83% | 6.74% | 11.36% | -10.31% | -9.17% | 22.24% | 143.7% | -42.84% | -23.5% | 14.76% | 25.81% | 6.59% | 95.77% | 4.73% | -14.7% | -67.32% | 111.74% | 2.38% | -3.37% | -4.16% | -3.99% |
| D&A (Non-Cash Add-back) | 137.99M | 137.75M | 162.99M | 181.12M | 187.38M | 195.12M | 189.06M | 189.79M | 186.38M | 153.6M | 159.19M | 155.75M | 156.05M | 131.14M | 115.35M | 103.48M | 77.35M | 67.03M | 69.29M | 90.25M | 70.98M | 58.02M | 65.67M | 73.91M | 78.78M | 132.16M | 99.48M | 78.6M | 55.1M | 47.1M | 39.5M |
| EBIT | 1.18B | 933.03M | 956.03M | 1.49B | 2.07B | 1.57B | 896.47M | 91.91M | 1.12B | 890.33M | 866.83M | 827.58M | 799.32M | 696.65M | 812.24M | 915.77M | 755.57M | 272.21M | -497.05M | 698.65M | 618.05M | 491.3M | 438.73M | 241.92M | 167.53M | 229.82M | 773.19M | 363.2M | 352.5M | 434.2M | 400.6M |
| Net Interest Income | -121.57M | -215.1M | -269.83M | -328.72M | -185.65M | -131.73M | -137.21M | -210.51M | -214.77M | -156.97M | -151.31M | -135.4M | -115.98M | -114.43M | -101.88M | -105.97M | -76.57M | -83.28M | -99.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 54.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 121.57M | 215.1M | 269.83M | 328.72M | 185.65M | 131.73M | 137.21M | 265.33M | 214.77M | 156.97M | 150.72M | 135.4M | 115.98M | 114.43M | 101.88M | 105.97M | 76.57M | 83.28M | 99.86M | 0 | 90.56M | 91.83M | 103.2M | 0 | 152.59M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -181.2M | -220.41M | -279.24M | -306.81M | -184.34M | -120.45M | -135.25M | -219.53M | -238.14M | -251.82M | -161.43M | -132.3M | -78.92M | -111.28M | -93.76M | -99.04M | -71.77M | -83.87M | -103.34M | -94.72M | -87.95M | -94.7M | -134.35M | -137.14M | -149.98M | -261.96M | -172.52M | -137.2M | -80.2M | -138.9M | -53.2M |
| Pretax Income | 921.98M | 717.93M | 489.32M | 1.16B | 1.88B | 1.44B | 759.26M | -111.83M | 909.37M | 694.29M | 715.4M | 692.18M | 683.33M | 582.22M | 710.36M | 809.8M | 679M | 188.92M | 431.9M | 592.18M | 518.28M | 385.56M | 304.98M | 47.28M | 17.55M | -109.29M | 610.13M | 231.2M | 272.3M | 308.4M | 362.6M |
| Pretax Margin % | 2.75% | 2.33% | 1.75% | 3.52% | 5.08% | 4.17% | 2.65% | -0.39% | 3.06% | 2.59% | 3% | 2.97% | 3% | 2.73% | 3.48% | 3.79% | 3.62% | 1.29% | 2.58% | 3.7% | 3.82% | 3.45% | 2.86% | 0.54% | 0.24% | -1.08% | 4.71% | 2.48% | 3.26% | 3.97% | 5.55% |
| Income Tax | 196.12M | 148.23M | 95.81M | 254.99M | 448.99M | 325.91M | 172.79M | 88.34M | 187.8M | 287.13M | 190.67M | 191.7M | 184.94M | 182.34M | 203.64M | 210.49M | 199.38M | 65.42M | 130.43M | 180.7M | 128.46M | 131.25M | 96.44M | 21.21M | 6.17M | -34.19M | 248.19M | 101.8M | 115M | 131.6M | 144.7M |
| Effective Tax Rate % | 21.27% | 20.65% | 19.58% | 21.9% | 23.83% | 22.69% | 22.76% | -78.99% | 20.65% | 41.36% | 26.65% | 27.69% | 27.06% | 31.32% | 28.67% | 25.99% | 29.36% | 34.63% | 30.2% | 30.51% | 24.79% | 34.04% | 31.62% | 44.85% | 35.14% | 31.28% | 40.68% | 44.03% | 42.23% | 42.67% | 39.91% |
| Net Income | 726.65M | 571.27M | 392.07M | 903.5M | 1.43B | 1.11B | 584.44M | -204.09M | 716.2M | 401.96M | 522.75M | 497.73M | 498.05M | 399.42M | 506.33M | 598.81M | 479.63M | 123.51M | 301.36M | 407.79M | 388.33M | 253.61M | 207.5M | 25.7M | -610.48M | -73.83M | 357.93M | 124.2M | 145.8M | 163.7M | 202.7M |
| Net Margin % | 2.17% | 1.85% | 1.4% | 2.73% | 3.84% | 3.21% | 2.04% | -0.71% | 2.41% | 1.5% | 2.19% | 2.14% | 2.19% | 1.87% | 2.48% | 2.8% | 2.56% | 0.84% | 1.8% | 2.55% | 2.86% | 2.27% | 1.95% | 0.3% | -8.26% | -0.73% | 2.76% | 1.33% | 1.75% | 2.11% | 3.1% |
| Net Income Growth % | 87.19% | 45.7% | -56.61% | -36.68% | 28.76% | 89.62% | 386.37% | -128.5% | 78.17% | -23.11% | 5.03% | -0.06% | 24.69% | -21.12% | -15.44% | 24.85% | 288.33% | -59.02% | -26.1% | 5.01% | 53.12% | 22.22% | 707.41% | 104.21% | -726.92% | -120.63% | 188.19% | -14.81% | -10.93% | -19.24% | 0.1% |
| Net Income (Continuing) | 725.86M | 569.69M | 393.51M | 909.36M | 1.44B | 1.11B | 586.46M | -200.17M | 721.57M | 407.38M | 524.72M | 500.49M | 498.39M | 399.88M | 506.72M | 599.32M | 479.63M | 123.5M | -613.63M | 407.79M | 388.33M | 253.61M | 207.5M | 25.7M | 12.09M | -75.59M | 351.93M | 124.2M | 145.8M | 163.7M | 202.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 74.05M | 73.99M | 70.38M | 71.84M | 65M | 58.55M | 59.63M | 54.47M | 51.38M | 48.69M | 52.18M | 52.37M | 4.94M | 4.6M | 4.14M | 6.45M | 0 | 337K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.4M | 69.7M | 70.3M | 92.7M |
| EPS (Diluted) | 14.05 | 10.93 | 7.29 | 15.84 | 21.80 | 15.10 | 7.43 | -2.40 | 8.10 | 4.48 | 5.68 | 5.20 | 4.98 | 3.85 | 4.56 | 5.17 | 4.01 | 1.03 | 2.48 | 3.28 | 3.16 | 2.09 | 1.75 | 0.25 | -6.04 | -0.77 | 3.56 | 1.20 | 1.50 | 1.64 | 1.98 |
| EPS Growth % | 92.56% | 49.93% | -53.98% | -27.34% | 44.37% | 103.23% | 409.58% | -129.63% | 80.8% | -21.13% | 9.23% | 4.42% | 29.35% | -15.57% | -11.8% | 28.93% | 289.32% | -58.47% | -24.39% | 3.8% | 51.2% | 19.43% | 600% | 104.14% | -684.42% | -121.63% | 196.67% | -20% | -8.54% | -17.17% | -1.98% |
| EPS (Basic) | - | 11.03 | 7.36 | 16.03 | 22.01 | 15.29 | 7.49 | -2.40 | 8.19 | 4.53 | 5.75 | 5.26 | 5.05 | 3.89 | 4.64 | 5.25 | 4.06 | 1.03 | 2.50 | 3.31 | 3.19 | 2.15 | 1.83 | 0.26 | -6.12 | -0.77 | 3.64 | 1.21 | 1.53 | 1.67 | 2.01 |
| Diluted Shares Outstanding | 51.71M | 52.26M | 53.8M | 57.03M | 65.45M | 73.39M | 78.64M | 83.57M | 88.44M | 89.77M | 92.03M | 95.69M | 99.95M | 103.7M | 111.08M | 115.93M | 119.58M | 120.49M | 121.42M | 124.43M | 123.18M | 124.08M | 124.56M | 100.92M | 101.07M | 95.88M | 100.54M | 103.5M | 97.11M | 99.82M | 102.37M |
| Basic Shares Outstanding | 51.32M | 51.8M | 53.28M | 56.36M | 64.84M | 72.47M | 77.99M | 83.57M | 87.48M | 88.68M | 90.96M | 94.61M | 98.67M | 102.56M | 109.24M | 114.03M | 118M | 119.8M | 120.77M | 123.18M | 121.67M | 117.82M | 113.11M | 100.14M | 99.79M | 95.88M | 98.33M | 102.64M | 95.4M | 98.02M | 100.85M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 30.52% | 12.48% | 10.69% | 3.95% |
Cyclical Inventory Obsolescence Risk
According to recent quarterly financial statements, Arrow Electronics achieved a significant revenue acceleration to 39.0% year-over-year growth in 2026Q1, marking a stark reversal from the double-digit contractions observed throughout the 2024 fiscal year as the company navigated a challenging semiconductor cycle.
The recent surge in top-line performance suggests a potential stabilization in demand across the Global Components segment. Investors should monitor whether this growth is sustainable or merely a reflection of inventory restocking cycles that may prove transitory in the coming quarters.
As reported in the company's income statement data, gross margins have remained tightly range-bound near 11%, reflecting the inherent limitations of a high-volume distribution model where pricing power is constrained by the dominance of major semiconductor suppliers and competitive industry dynamics.
The inability to meaningfully expand gross margins above the 11-12% threshold indicates that Arrow Electronics remains a price-taker in its core markets. This structural reality implies that profitability improvements must be driven by operational efficiency rather than margin expansion on existing product lines.
Based on the provided financial figures, operating income scaled to $398.3 million in 2026Q1, demonstrating that Arrow Electronics can achieve meaningful operating leverage when revenue growth accelerates, though the thin 4.2% operating margin leaves little buffer for unexpected cost increases or volume declines.
The company's ability to keep SG&A growth in check relative to gross profit expansion appears to be the primary lever for earnings growth. Analysts should investigate whether the current SG&A efficiency is sustainable or if it relies on temporary cost-containment measures that may reverse as business activity intensifies.
As indicated by the quarterly data, net income has shown significant volatility, with EPS jumping from $1.51 in 2025Q1 to $4.55 in 2026Q1, a trend that appears heavily influenced by cyclical revenue swings rather than consistent, high-quality operational improvements across all business segments.
The fluctuation in net margins, which ranged from 1.2% to 2.5% over the last ten quarters, suggests that the bottom line is highly susceptible to non-operating items and cyclical inventory valuation adjustments. Investors should be cautious of relying on recent EPS spikes as a baseline for future performance.
While revenue growth has accelerated, the historical data suggests that Arrow Electronics remains vulnerable to inventory obsolescence, as evidenced by the sharp margin compression during previous periods of industry-wide destocking that could recur if current demand signals prove to be a false positive.
Short-term growth may mask underlying risks related to the company's massive inventory financing requirements. If the current demand environment softens, the company may face significant pressure on its working capital and potential write-downs that would quickly erode the recent gains in net income.
Quick answers to the most common questions about buying ARW stock.
For fiscal year 2025, Arrow Electronics, Inc. (ARW) reported total revenue of $30.85B. This represents a 372.1% increase compared to $6.53B in 1996.
Arrow Electronics, Inc. (ARW) is profitable, generating $571.3M in net income for the fiscal year ending 2025 with a net profit margin of 1.9%.
Arrow Electronics, Inc. (ARW) reported an operating income of $938.3M, resulting in an operating profit margin of 3.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Arrow Electronics, Inc. (ARW) generated $3.47B in gross profit for the year, representing a gross profit margin of 11.2%. This demonstrates the company's core pricing power and production efficiency.