| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 85 | 14.5x | 17.8x | Top tier | |
Growth | 81 | 26.1% | 7.1% | Top tier | |
Quality | 50 | 10.7% | 4.5% | Around median | |
Safety | 66 | 1.6x | 2.6x | Around median | |
Capital Return | 81 | — | 2.12% | Top tier | |
Momentum | 96 | 75.9% | 2.9% | Top tier | |
Sentiment | 35 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Arrow Electronics operates as a global technology distributor through two complementary businesses: Global Components and Enterprise Computing Solutions, or ECS. The components business connects suppliers and customers across the industrial, transportation, aerospace and defense, medical, consumer electronics, and data center markets, while ECS focuses on hybrid cloud, cybersecurity, infrastructure software, data protection, and AI-driven workloads. The company adds higher-value revenue and services through supply chain management, engineering, design, integration, and the ArrowSphere platform.
In Q2 fiscal 2026, revenue reached $10 billion, up 32% year over year and 30% in constant currency. Adjusted gross margin held steady at 11.2%, while adjusted operating income rose to $403 million and operating margin expanded 120 basis points to 4%; adjusted diluted earnings per share also jumped 124% to $5.45. Adjusted operating expenses as a percentage of gross profit declined by 10.5 percentage points to 64.1%, reflecting clear operating leverage benefits.
The Global Components segment generated approximately $7.4 billion, or about 74% of Q2 fiscal 2026 revenue, and achieved an adjusted operating margin of 5.4% after sales rose 11% from the previous quarter. ECS recorded approximately $2.6 billion in revenue, or about 26% of the total, with 14% year-over-year growth, and billings reached $5.9 billion. For comparison, EDGAR data for fiscal 2025 shows revenue of $30.9 billion, gross profit of $3.5 billion, net income of $571.3 million, and earnings per share of $10.93.
The average analyst price target is $225, with a wide range of $175 to $250 and a Neutral consensus; the average is approximately 5% below the 52-week range high of $237.33, while the highest target exceeds that high and the lowest target remains approximately 26% below it. The stock's 52-week range is $101.79 to $237.33, but the price-to-earnings ratio is unavailable in the data, so the valuation assessment here relies on the dispersion of targets and the wide trading range, reflecting continued disagreement over the sustainability of the components cycle and ECS contract charges despite strong growth and margins.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue rose 32% year over year to $10 billion, with higher unit volumes leading the growth and price inflation making an additional contribution. In Global Components, price inflation contributed approximately one-third of the sequential increase, while demand came from industrial, transportation, aerospace and defense, and data centers. Value-added services and expense discipline helped lift adjusted operating income to $403 million and adjusted diluted earnings per share to $5.45.
The book-to-bill ratio remained well above 1 across all three regions during Q2 fiscal 2026. Backlog also continued to build into the first half of fiscal 2027, with improving demand among broad-market customers. Management confirmed that order sizes and cadence remained normal and were not driven by panic inventory stocking behavior.
ECS generated revenue of $2.6 billion and billings of $5.9 billion in Q2 fiscal 2026, with each growing 14% year over year. Its backlog rose by more than 75% to a record level, supported by cloud, cybersecurity, data protection, and infrastructure software. Arrow supports this business through ArrowSphere and more than 100 ready-to-deploy solutions in its ECS Centers of Excellence, alongside Microsoft designations in Copilot and Azure Virtual Desktop.
Automated analysis for informational purposes only — not investment advice.
In Q2 fiscal 2026, Arrow recorded a $27 million charge on underperforming multi-year contracts with a strategic partner. The charge reduced the adjusted ECS margin by 100 basis points, while management said the margin would have exceeded 4% without it. The company terminated a key component of a post-distribution agreement and is restructuring another component, with lower additional charges expected during the second half of fiscal 2026.
The company expects revenue of between $9.6 billion and $10.2 billion, representing 28% year-over-year growth at the midpoint. It expects Global Components sales of between $7.5 billion and $7.9 billion and ECS sales of between $2.1 billion and $2.3 billion. It also expects adjusted diluted earnings per share of between $4.83 and $5.03, a tax rate of between 23% and 25%, and interest expense of approximately $50 million.
The company introduced the remote engineering Digital Test Drive platform to enable customers to evaluate hardware performance and accelerate product development without physically transporting evaluation equipment. eInfochips received recognition in Gartner's Emerging Market Quadrant for physical AI services in Q2 fiscal 2026. ECS Centers of Excellence also provide more than 100 ready-to-deploy solutions for hybrid infrastructure, cybersecurity, and AI, and these engagements have historically achieved a 90% proposal close rate.
