Update shared on 22 Jul 2026
Fair value Increased 6.06%Analysts have revised their fair value estimate for Arrow Electronics to $175 from $165, citing updated assumptions for revenue growth, profit margins and future P/E that adjust the analyst price target accordingly.
What’s in the News for Arrow Electronics
- Arrow Electronics reported AI driven growth across cloud and diversified end markets, with recent quarters showing 39% year over year sales growth, margin improvements, aggressive debt reduction and about US$700 million in quarterly free cash flow, according to recent news reports.
- Management issued Q2 guidance calling for consolidated sales between US$9.15 billion and US$9.75 billion and adjusted EPS of US$4.32 to US$4.52, highlighting expectations around global components and enterprise computing solutions performance. Source: recent company guidance.
- Arrow Electronics earned the Frontier Distributor designation within the Microsoft AI Cloud Partner Program, recognizing its scale, partner readiness and execution across EMEA and North America, and reinforcing its support for Microsoft based cloud and AI solutions. Source: company announcement.
- The company launched Digital Test Drive, a cloud based remote engineering service that lets developers connect via the cloud to physical development boards in Arrow labs, run tests and access live support, aimed at shortening hardware evaluation cycles. Source: product announcement.
- Arrow Electronics is pursuing mergers and acquisitions focused on IP&E and has an ongoing capital return program that includes a US$1,000 million share repurchase authorization reapproved by the board, with past buybacks totaling US$3.6 billion at an average price of about US$98 per share. Source: management commentary and board authorization.
Valuation Changes for Arrow Electronics
- Fair Value: revised to $175 from $165, an increase of about 6%.
- Discount Rate: adjusted slightly lower to 9.34% from 9.41%.
- Revenue Growth: updated assumption to 11.31% from 10.75%.
- Net Profit Margin: refined modestly to 2.32% from 2.34%.
- Future P/E: updated to 10.66x from 10.13x, reflecting a small change in the valuation multiple applied to Arrow Electronics.
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