Here are 1-3 brief analogies to describe Arrow Electronics (ARW):

• Like W.W. Grainger, but for electronic components and enterprise IT solutions, helping tech companies source and manage their essential parts and systems.
• The Amazon for business-to-business supply chain in the technology industry, providing a vast catalog of components and IT infrastructure solutions for companies to build and run their products.

• Electronic Component Distribution: Distributes a wide array of semiconductors, passive, and electromechanical components to original equipment manufacturers (OEMs) and contract manufacturers (CMs).
• Enterprise Computing Solutions Distribution: Distributes enterprise IT hardware, software, and cloud solutions, including servers, storage, and networking, to value-added resellers and managed service providers.
• Design Engineering Services: Provides technical design support and engineering expertise to assist customers in developing products that integrate electronic components.
• Supply Chain Services: Offers global logistics, inventory management, and value-added integration services to optimize the supply chain for electronic components and enterprise computing solutions.
• Managed Services and Support: Delivers post-sales technical support, integration services, and various managed solutions for enterprise computing environments.

Arrow Electronics (ARW) sells primarily to other companies (Business-to-Business or B2B).

Due to the highly diversified nature of its customer base, Arrow Electronics has publicly stated in its financial filings (e.g., 10-K) that no single customer accounted for 10% or more of its consolidated net sales in recent years. Therefore, there are no specific named "major customers" that are individually identified as such in their disclosures.

However, Arrow Electronics serves a vast array of companies across its two primary business segments. Its customers broadly fall into the following categories:

• Original Equipment Manufacturers (OEMs): These are companies that design and manufacture their own end-products across various industries, such as automotive, industrial automation, medical devices, consumer electronics, and telecommunications infrastructure. Arrow supplies them with a wide range of electronic components, as well as engineering design and supply chain services to support their product development and manufacturing processes.

• Contract Manufacturers (CMs): Companies that provide manufacturing services to OEMs and other technology companies. They rely on Arrow for sourcing electronic components and managing the supply chain to produce products for their clients.

• Value-Added Resellers (VARs), Managed Service Providers (MSPs), and System Integrators: These partners purchase enterprise computing solutions (including servers, storage, networking, software, cloud services, and cybersecurity solutions) from Arrow. They then integrate these products and services to deliver comprehensive IT solutions to their own end-user business customers across various industries.

• Analog Devices (ADI)
• Broadcom (AVGO)
• Cisco Systems (CSCO)
• Dell Technologies (DELL)
• Hewlett Packard Enterprise (HPE)
• IBM (IBM)
• Intel (INTC)
• Microchip Technology (MCHP)
• Microsoft (MSFT)
• NXP Semiconductors (NXPI)
• STMicroelectronics (STM)
• Texas Instruments (TXN)
• Vishay Intertechnology (VSH)

William F. Austen, Interim President and Chief Executive Officer

Mr. Austen was named Interim President and CEO of Arrow Electronics, Inc. effective September 16, 2025. He has been a member of Arrow's Board of Directors since May 15, 2020. Prior to his interim appointment, Mr. Austen served as president, chief executive officer, and director of Bemis Company, Inc., a global manufacturer of flexible packaging products and pressure-sensitive materials, for six years until June 2019. From 2000 to 2013, he held roles of increasing executive and operational leadership responsibilities within Bemis and its divisions.

Raj Agrawal, Senior Vice President and Chief Financial Officer

Mr. Agrawal was appointed senior vice president and chief financial officer of Arrow Electronics, Inc. effective September 6, 2022. Before joining Arrow, he served as executive vice president and chief financial officer for Western Union since 2014. During his tenure at Western Union, he also intermittently held positions as head of mergers and acquisition strategy and global operations. Mr. Agrawal has held progressively senior financial and business leadership roles with Deluxe Corp., General Mills, Inc., Chrysler Corp., and General Motors Corp.

Shantnu Sharma, Senior Vice President and Chief Strategy and Technology Officer

Mr. Sharma leads strategic planning and all merger and acquisition activity for Arrow. Before joining Arrow, he spent ten years as the head of strategy, M&A, and business development at Advanced Micro Devices (AMD). Prior to AMD, he spent four years at McKinsey, where he helped establish the consultancy's cybersecurity practice. He is also the holder of seven patents.

Kim Brown Wilmsen, Senior Vice President and Chief Information Officer

Ms. Wilmsen is responsible for managing Arrow's global information technology systems and operations. She joined Arrow in 2017 as vice president of information technology – global infrastructure. She then served as vice president and CIO of global components in 2019, and in 2022, she was named vice president and CIO of global application solutions for all of Arrow's business groups.

Gretchen K. Zech, Senior Vice President and Chief Governance, Sustainability, and Human Resources Officer

Ms. Zech leads Arrow's global Environmental, Social, and Governance (ESG) strategy. She also oversees strategy, operations, and business partnerships for various global functions, including corporate affairs, real estate and environmental sustainability, legal and compliance, human resources, and payroll.

Key Risks to Arrow Electronics (ARW)

1. Highly Competitive Environment and Margin Pressure: Arrow Electronics operates in a fiercely competitive global market, which leads to significant pricing and margin pressures. The company competes with large multinational and national distributors, as well as specialized smaller players and even its own suppliers, for customers. This intense competition can materially and adversely affect the company's business. In Q3 2025, Arrow experienced margin compression, with the non-GAAP operating margin declining to 2.8% from 3.2% in the prior year period, and gross margin contracting to 10.8% from 11.5% year-over-year.
2. Global Operations and International Risks: A substantial portion of Arrow's revenue comes from its international operations, making it highly exposed to various global risks. These include adherence to diverse international regulations (such as import/export controls and anti-corruption laws), geopolitical uncertainties, and fluctuations in currency exchange rates, all of which can significantly impact financial results. Challenges in executing global operations, including geographic segmentation and operational disruptions, could also hinder strategic plans. Approximately 65-66% of the company's sales came from outside the United States in 2022, 2023, and 2024.
3. Reliance on Key Suppliers: Arrow Electronics heavily depends on its relationships with suppliers, which are typically governed by non-exclusive and cancellable agreements. Any alteration in terms or cessation of distribution by these suppliers poses a significant risk. While many products are available from alternative sources, certain business segments, like the Global Enterprise Computing Solutions (ECS) business, rely on a limited number of suppliers. A substantial portion of the company's consolidated sales can be attributed to a single supplier, for instance, approximately 14% in 2020.

The accelerating and widespread shift within enterprise IT from purchasing on-premise hardware and perpetual software licenses (capital expenditure model) to consuming IT resources via subscription-based cloud services (IaaS, PaaS, SaaS) and other "as-a-service" models (operational expenditure model). This trend directly impacts Arrow's Global Enterprise Computing Solutions segment by reducing demand for the discrete hardware and software products it traditionally distributes. While Arrow is actively expanding its cloud offerings and services to help partners transition, the fundamental move towards direct consumption from hyperscale cloud providers (e.g., AWS, Microsoft Azure, Google Cloud) and SaaS vendors poses a continuous threat to the traditional reseller and distributor value chain, potentially leading to disintermediation or reduced revenue opportunities in its legacy distribution business. The shift necessitates Arrow to fundamentally re-architect its business model and value proposition to capture recurring revenue streams and provide different types of services in a cloud-centric world, a transition that carries execution risk and intense competition.

Arrow Electronics (ARW) operates primarily in two main market segments: the distribution of electronic components and enterprise computing solutions.

Global Components Business

This segment focuses on the distribution of electronic components, including semiconductors, passive components (such as capacitors, resistors, and potentiometers), electro-mechanical products (like relays, switches, and connectors), and computing and memory products.

The global addressable market for the distribution of electronic components was valued at approximately $418.2 billion in 2025 and is projected to reach $871 billion by 2035, growing at an estimated Compound Annual Growth Rate (CAGR) of 7.2% from 2026 to 2035. Another estimate places the global market at $199.39 billion in 2025, with projections to reach $332.45 billion by 2032 at a CAGR of 7.52%. Arrow Electronics itself estimates its total addressable market (DTAM) for its core distribution business to be over $250 billion. The Asia-Pacific region is a dominant territory in this market, accounting for 47% of global sales in 2024.

Global Enterprise Computing Solutions (ECS)

This segment provides enterprise computing products and solutions, encompassing areas such as datacenter, cloud, security, and analytics. It also offers various value-added services, including engineering and integration support, warehousing and logistics, and authorized hardware and software training.

The global enterprise tech ecosystem market, which aligns with Arrow's ECS offerings, was valued at $405.26 billion in 2025 and is projected to reach $728.58 billion by 2035, growing at a CAGR of 6.1%. North America is a leading region in this market, holding approximately 38% of the market share. Another estimate for the global enterprise software market, which overlaps with ECS, suggests a size of $280.49 billion in 2025, predicted to exceed $761.73 billion by 2034, expanding at a CAGR of 11.74% from 2025 to 2034.

Arrow Electronics (ARW) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Global Components Cyclical Recovery: The company anticipates a gradual recovery in its global components business following a prolonged market correction and inventory overhangs in 2023 and 2024. Leading indicators such as stable book-to-bill ratios and improving regional trends, particularly in Asia Pacific, Europe, and North America, and sectors like automotive and industrial, are expected to fuel this rebound.
2. Growth in Enterprise Computing Solutions (ECS) driven by Cloud and AI: The Enterprise Computing Solutions segment is a significant driver, showing consistent year-over-year growth. This momentum is attributed to strong demand for hybrid cloud solutions and increasing investments in AI-related technologies. Arrow's cloud commerce platform, ArrowSphere, plays a crucial role in leveraging the shift towards IT-as-a-Service.
3. Shift Towards Higher-Margin Value-Added Offerings and Services: Arrow is strategically focusing on expanding its portfolio of higher-margin value-added offerings and supply chain services. This includes enhancing design services, supply chain management solutions, and specialized offerings in areas such as cybersecurity, data protection, and data intelligence, which are expected to contribute to profitable growth.
4. Market Share Gains and Expanding Customer and Supplier Base: Management has expressed confidence in gaining market share and expanding both its customer and supplier bases. These efforts are anticipated to support a gradual market recovery and contribute to overall revenue growth.
5. Strong Geographic Performance: Continued robust performance in key geographic regions, such as Asia Pacific and EMEA, is expected to drive revenue. Specifically, growth in the Global Components segment is led by Asia Pacific, while the Enterprise Computing Solutions segment sees strong performance across EMEA, fueled by broad-based growth and strength in cloud and data storage solutions.

Share Repurchases

• Arrow Electronics has returned approximately $3.5 billion to shareholders through share repurchases since 2020.
• In 2024, the company repurchased 2.0 million shares for $250 million.
• As of December 31, 2024, $324.1 million remained available under its share repurchase program, which does not have an expiration date.

Share Issuance

• Arrow Electronics issued 55,787 thousand shares in 2025 and 55,592 thousand shares in 2024, primarily related to stock-based compensation awards.
• The number of outstanding shares has steadily declined from 75.7 million in 2020 to 51.856 million as of October 2025, indicating a net reduction through repurchases.

Outbound Investments

• The company acquired iQmine GmbH in October 2024, a provider of diagnostics, embedded solutions, and AUTOSAR integration for the automotive industry.
• Arrow Electronics continues to evaluate strategic acquisitions to enhance its product and service offerings and expand its geographic reach.
• The average number of acquisitions per year for Arrow Electronics between 2019 and 2024 was 0.2.

Capital Expenditures

• Arrow Electronics anticipates capital expenditures of approximately $100 million for fiscal year 2025.
• Capital expenditures are focused on improving operational efficiency, including investments in IT for automation and consolidating real estate, as part of an Operating Expense Efficiency Plan slated for completion by the end of fiscal year 2026.
• The company's capital expenditures generally encompass both maintenance CAPEX to sustain current operations and growth CAPEX for expansion and new products.