Arrow Electronics ARW is scheduled to report second-quarter 2026 earnings on Aug. 6.
For the second quarter of 2026, sales are estimated between $9.15 billion and $9.75 billion. The Zacks Consensus Estimate for ARW’s second-quarter 2026 revenues is pegged at $9.45 billion, indicating a 24.67% increase from the year-ago quarter’s reported figure.
ARW anticipates GAAP earnings of $3.91-$4.11 per share and non-GAAP earnings of $4.32-$4.52 per share.
The consensus mark for earnings is pegged at $4.45 per share, unchanged over the past 30 days. The figure indicates an 83.13% increase from the year-ago quarter’s reported figure.
ARW’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 33.71%.
Arrow Electronics, Inc. Price and EPS Surprise
Arrow Electronics, Inc. price-eps-surprise | Arrow Electronics, Inc. Quote
Factors Likely to Shape ARW’s Q2 Results
Arrow Electronics enters its second-quarter 2026 results against a backdrop of guidance that already points to a moderating pace of growth after an outsized first quarter.
Within Global Components, supplier and distribution relationships expanded through the second-quarter as Arrow Electronics continued broadening its line card across power, electrification, and industrial categories, activity consistent with management's commentary on capturing recovering unit demand across geographies and end markets.
Within Global ECS, Arrow Electronics signed an EMEA-wide distribution agreement with Motorola Solutions in early May, adding Avigilon's video security and access control technologies to its cybersecurity and cloud portfolio. The segment also continued expanding AI enablement initiatives for channel partners through the ArrowSphere platform and new AI-focused hubs introduced during the quarter, aimed at helping partners build and monetize AI-driven solutions, an area management has flagged as central to ECS' software-weighted, less cyclical revenue mix.
On the catalyst side, the broad-based cyclical recovery in components that spanned the Americas, EMEA and Asia-Pacific in the first quarter, alongside improving book-to-bill ratios and a building backlog, appears to have carried into the second quarter, with components guided to sales of $6.8 billion to $7.2 billion. Demand rebuilding from customers replenishing depleted buffer inventories, rather than speculative ordering, together with continued expansion of higher-margin value-added services such as supply chain and engineering support, are among the factors likely to have supported profitability during the period.
Headwinds appear equally relevant. Global ECS sales were guided down sequentially to $2.35 billion to $2.55 billion, reflecting the absence of the extra shipping days and the hyperscaler-driven data center build that lifted first-quarter ECS billings, along with the lingering effect of a charge tied to an underperforming multiyear purchase obligation that pressured segment margins. Continued share repurchases under the newly authorized $1 billion buyback program, effective mid-May, and ongoing costs tied to restructuring and the search for a permanent chief executive also remain relevant considerations for the quarter's results.
Given these mixed signals against a still-building components recovery, investors may find it prudent to hold existing positions or await a clearer post-earnings entry point before adding fresh exposure to the stock.
What Our Model Says About ARW Stock
Our proven model does not predict an earnings beat for Arrow Electronics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
ARW currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Sandisk Corporation SNDK is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Sandisk has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sandisk’s fiscal fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days.
Western Digital Corporation WDC is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Western Digital has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Western Digital’s fiscal fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days.
MKS Inc. MKSI is scheduled to report second-quarter 2026 results on Aug. 5. Currently, MKS has an Earnings ESP of +2.64% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
