ARROW ELECTRONICS, INC. (ARW)

Arrow Electronics, Inc. sources and engineers technology for thousands of manufacturers, service providers, and users of enterprise computing solutions. Incorporated in New York in 1946, it offers one of the world's broadest portfolios of electronic components and enterprise computing solutions from leading suppliers. It pairs these products with services, solutions, and software that help industrial and commercial customers launch innovative products, shorten time to market, and improve competitiveness. Its stated strategy is to be the premier, technology-centric, go-to-market and supply chain services company.

The company has two reportable segments. Global components, about 70% of 2025 sales, markets and distributes electronic components to OEMs and EMS providers. Its sales were roughly 72% semiconductors and related services, 16% IP&E products (capacitors, resistors, potentiometers, power supplies, relays, switches, connectors), 7% computing and memory, and 5% other. It also offers supply chain services (procurement, logistics, warehousing, financial management, data analytics), engineering and design services (software development, product design, integrated circuit design), demand creation through field application engineers, and integration services from prototyping to volume production. Global ECS, about 30% of sales, provides datacenter, cloud, security, and analytics solutions to VARs and MSPs. Its sales were roughly 27% software applications, 25% storage, 15% security, 14% compute, 5% data intelligence, 5% networking, and 9% other. It also runs ArrowSphere, a software and cloud marketplace and management platform, and manages go-to-market activities for certain suppliers under strategic outsourcing agreements with a contractual fee model.

Arrow serves a diverse worldwide customer base of OEMs, VARs, MSPs, EMS providers, and other commercial customers. They span industries such as industrial, automotive and transportation, computing, and networking and communications, and the company also counts U.S. government agencies among its customers. No customer exceeded 2% of 2025 consolidated sales. Substantially all sales are made order by order rather than under long-term contracts. The company operates in the Americas, EMEA, and Asia/Pacific, with over 140 sales facilities and 39 distribution and value-added centers serving over 85 countries.

Most purchases from suppliers are made under non-exclusive distributor agreements that either party can cancel on short notice. No supplier exceeded 8% of 2025 sales, though global ECS relies on a limited number of suppliers. Many agreements offer price protection, return privileges, and scrap allowances, covering about 56% of inventories, and repurchase arrangements covering about 59%. Arrow competes with large multinational and national distributors of electronic components and enterprise computing solutions, smaller specialized firms, its own suppliers, and new entrants in logistics, fulfillment, electronic catalog distribution, and e-commerce supply chain services. It had about 22,230 employees at December 31, 2025: 5,860 in the Americas, 8,020 in EMEA, and 8,350 in Asia/Pacific.