Arrow Electronics Q4 EPS Jumps 48% to $4.39, Revenue Rises 20%
Arrow Electronics reported Q4 non-GAAP EPS of $4.39, beating estimates by 23.7% and rising 48% year over year. Revenues reached $8.75 billion, up 20% year over year (16.4% at constant currency), driven by 22% growth in Global Components and 16% in Enterprise Computing Solutions.
1. Q4 Financial Highlights
Arrow Electronics delivered Q4 non-GAAP EPS of $4.39, beating consensus by 23.7% and marking a 48% year-over-year increase. Revenue for the quarter rose 20% to $8.75 billion, outpacing estimates by 8% and reflecting a 16.4% gain on a constant-currency basis.
2. Segment Performance
Global Components sales climbed 22% year over year to $5.88 billion (19.5% at constant currency), with the Americas up 22% and Asia-Pacific up 26%. The Global Enterprise Computing Solutions segment generated $2.86 billion, up 16% year over year (10.5% constant currency), led by a 24% EMEA increase.
3. Margins, Cash Flow and Balance Sheet
Consolidated non-GAAP gross margin dipped 20 bp to 11.5%, with Components margin down 50 bp to 10.9% and ECS margin down 40 bp to 12.6%. Operating income rose 23% to $336 million, cash from operations improved to $200 million, and cash reserves grew to $306 million vs. $214 million in Q3.
4. Q1 2026 Guidance
For Q1 2026, Arrow expects sales between $7.95 billion and $8.55 billion, with Components at $5.75 billion–$6.15 billion and ECS at $2.20 billion–$2.40 billion. It projects non-GAAP EPS of $2.70–$2.90, with FX tailwinds adding roughly $263 million in revenue and $0.10 per share.