ARW NYSE Russell 1000 Earnings call
ARROW Electronics, Inc. (ARW) · Q2 2026 results and valuation
Share price: $198.03 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026
Net income up 15.5% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+15.5%
Net income vs Q1 2026
Outlook given
Net income 272.7M vs 236.0M
Revenue +5.5%
Against the same quarter last year (Q2 2025) it is +45.3%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 82% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out Nothing unusual flagged this period.
Valuation
Is ARROW Electronics, Inc. undervalued?
Reverse DCF. Average free cash flow of the last three fiscal years (the last year was negative) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −6.0% growth a year (3-year revenue growth), the model's fair value is $41.22 a share — the stock trades 380% above it. Today's price assumes 9.2% growth a year.
Current price
$198.03
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+9.2% for 10 yrs
Fair value / share
$41.22
Buy below
$30.91
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +28% · from the Q2 2026 report: “We expect sales for the third quarter to be between $9.6 billion to $10.2 billion representing an increase of 28% year over year at the midpoint of the range.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Third-quarter sales are guided to $9.6 billion to $10.2 billion, up 28% year over year at the midpoint.
Source quote
“We expect sales for the third quarter to be between $9.6 billion to $10.2 billion representing an increase of 28% year over year at the midpoint of the range.”
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Figure
Non-GAAP EPS reached $5.45 for Q2 2026 due to broad-based demand, disciplined execution, and positive operating leverage.
Source quote
“The combination of broad-based demand, disciplined execution, and positive operating leverage resulted in non GAAP EPS of $5.45 representing a significant...”
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Fading
ARW continued to benefit from strong secular demand trends in AI-driven workloads within ECS while seeing a broad-based recovery in global components across geographies and customer mix.
Source quote
“In ECS, we continue to benefit from strong secular demand trends in the AI-driven workloads, and we have generated year-over-year... In global components, the recovery is broad-based across geographies, industry verticals and customer mix, driven by customer demand. Operating momentum across our business continues to build as our fundamentals strengthen.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 92% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“We will continue investing in innovation and customer enablement to deepen relationships and expand our value proposition with a disciplined focus on allocating capital, to the highest return on investment...”
“As a result, we believe we are well positioned to capitalize on emerging opportunities and convert them into sustainable, profitable growth.”
“As we enter the second half of the year, our focus remains on improving the quality of our growth through strong execution and disciplined financial management.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-04)
| Metric | Q2 2026period end 2026-07-04 | Q1 2026period end 2026-04-04 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 9.99B | 9.47B | +5.5% | 7.58B | +31.8% |
| Gross profit | 1.13B | 1.09B | +3.2% | 848.7M | +32.6% |
| Operating income | 377.3M | 361.6M | +4.4% | 190.6M | +98.0% |
| Net income | 272.7M | 236.0M | +15.5% | 187.7M | +45.3% |
| EPS | 5.26 | 4.55 | +15.6% | 3.59 | +46.5% |
| P/E today 15.3 | 12.6 | 10.4 | +2.2 | 14.4 | −1.8 |
Topics
Most discussed now
- 3, positive operating leverage resulting in year over year margin expansion and 4, favorable mix of higher margin value added...
- New Until that time, that the board says that the succession planning process has completed, I will continue to be the...
- Arrow Electronics continues to focus on disciplined profitable growth and its efforts around operational efficiency are driving substantial…
- Combined with the actions Arrow Electronics has taken to enhance efficiency and optimize its operating model, it believes it is well...
- In parallel, Arrow Electronics will strive to continue growing its portfolio of higher margin value added services across both global…
Faded since Q1 2026
- Fading Just to be clear, Arrow Electronics will always excel at its traditional distribution and its higher-margin value-added offerings…
- Dropped Arrow Electronics is not guiding to margins in the second quarter, but component margins do step down a little bit related to...
- Fading Arrow Electronics' strong results were attributable to several items, including: one, unit volume growth, coupled with good execution; two…
- Fading Arrow Electronics will continue to allocate capital to the highest return on investment opportunities with the goal of creating sustainable…
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation · SEC 8-K
- Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K