Arrow Electronics reported third‑quarter 2025 financial results, with consolidated sales of $7.71 billion, up 13 % from the same quarter a year earlier. GAAP earnings per share were $2.09, exceeding the high end of analyst guidance, while non‑GAAP EPS reached $2.41. Net income attributable to shareholders was $109 million, a 9 % increase from Q3 2024.
Global Components sales rose 12 % YoY to $5.56 billion, and Global Enterprise Computing Solutions (ECS) sales increased 15 % YoY to $2.16 billion. ECS operating income fell 16 % to $64.7 million after a $21 million charge related to under‑performed multi‑year contracts, but the segment still generated a 8 % YoY increase in operating income.
For the fourth quarter Arrow forecasts revenue of $8.10 billion, 3.1 % below consensus estimates, and a non‑GAAP EPS range of $3.44 to $3.64. Management noted that the pace of the cyclical upturn in the components market is gradual amid macroeconomic uncertainty, and that regional and customer mix dynamics are presenting headwinds to profitability.
Gross margin contracted to 10.8 %, down 70 basis points from the prior year, while operating margin remained at 2.3 %. Free cash flow was negative $312 million in Q3 2025, a sharp decline from $62 million in the same quarter last year. Arrow is also navigating a leadership transition, with interim CEO William Austen not a candidate for the permanent role and a search committee in place.
Management highlighted secular tailwinds from artificial intelligence and hybrid cloud demand, which are driving strength across technology categories. The company continues to emphasize value‑added services such as supply‑chain and engineering support to support AI build‑outs, positioning it for margin accretion in the long term.
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