Arrow Electronics (ARW) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 and full-year 2025 results, with consolidated sales up 20% and non-GAAP EPS up 48% year-over-year, both exceeding guidance.

• Both Global Components and ECS segments outperformed expectations, with momentum in cloud, AI, and datacenter activity.

• Strategic focus on higher-margin, value-added services and operational productivity drove improved margins and cash generation.

• Diversified business model and disciplined capital allocation underpin resilience and long-term value creation.

• Ongoing CEO search and internal organizational changes to align go-to-market teams and accelerate growth initiatives.

Financial highlights

• Q4 2025 consolidated sales reached $8.7 billion, up 20% year-over-year; full-year sales were $30.9 billion, up 10%.

• Q4 non-GAAP diluted EPS was $4.39, up 48% year-over-year; full-year non-GAAP diluted EPS was $11.02, up 4%.

• Q4 non-GAAP operating income was $336 million (3.8% of sales); net income was $228 million.

• Q4 gross margin was 11.5%, up 50 bps year-over-year.

• Q4 cash flow from operations was $200 million; $50 million in share repurchases.

Outlook and guidance

• Q1 2026 consolidated sales expected between $7.95–$8.55 billion, up 21% year-over-year at midpoint.

• Q1 2026 non-GAAP diluted EPS guidance is $2.70–$2.90; tax rate expected at 23–25%, interest expense at ~$60 million.

• Global Components Q1 sales expected between $5.75–$6.15 billion; ECS between $2.2–$2.4 billion.

• Foreign currency expected to increase Q1 sales by $263 million and EPS by $0.10 year-over-year.

• Gradual recovery anticipated in 2026, with above-seasonal performance expected in Q1 across all regions.