Arrow Electronics’ (ARW) Strong Q2 Results and Buybacks Could Be a Game Changer for Shareholders

• Arrow Electronics recently announced its second quarter 2025 results, posting revenue of US$7.58 billion and net income of US$187.75 million, both higher than the same period last year, and provided new earnings guidance for the third quarter alongside updates on its ongoing share buyback program.
• An interesting insight is that Arrow's ongoing share repurchases have now reduced shares outstanding by more than a third since August 2021, underlining management's commitment to returning capital to shareholders.
• We'll examine how Arrow's robust quarterly results and rising earnings guidance may reshape the company’s growth narrative and margin outlook.

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Arrow Electronics Investment Narrative Recap

Owning Arrow Electronics today means believing that robust end-market demand, expanding value-added solutions, and disciplined financial management will outweigh risks from market normalization and digital disintermediation. The company's latest strong quarterly revenue and earnings do little to reduce the immediate risk that sales and margins could face pressure if customer inventory drawdowns persist, leaving Arrow exposed to cycles outside its control.

Arrow’s recent update on its substantial share buyback, now totaling over a third of shares retired since 2021, illustrates a clear focus on shareholder returns. While this is supportive of earnings per share on the surface, the real near-term catalyst remains a sustained broad-based recovery in customer ordering, especially in the mass-market segment, which is still subject to end-market uncertainty.

Yet, with the company’s margin profile sensitive to shifts in regional and customer mix, investors should be aware that if mass market demand fails to rebound, this could ...

Read the full narrative on Arrow Electronics (it's free!)

Arrow Electronics is projected to reach $34.9 billion in revenue and $880.8 million in earnings by 2028. This outlook is based on an assumed 6.9% annual revenue growth rate and reflects a $413.6 million increase in earnings from the current $467.2 million.

Uncover how Arrow Electronics' forecasts yield a $116.75 fair value, in line with its current price.

Exploring Other Perspectives

Fair value opinions from the Simply Wall St Community range dramatically from US$19.45 to US$116.75, with just two perspectives contributing to this spread. Against this backdrop, the sensitivity of Arrow’s margins to customer mix may shape future performance in ways not yet reflected here, consider reviewing multiple viewpoints before deciding your next step.

Explore 2 other fair value estimates on Arrow Electronics - why the stock might be worth less than half the current price!

Build Your Own Arrow Electronics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arrow Electronics research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Arrow Electronics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arrow Electronics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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