Arrow Electronics Q4 2025 revenues surged 20% year-over-year to $8.7 billion. In the full year, revenues rose 10% to $30.8 billion.
“Arrow delivered a strong fourth quarter, reflecting disciplined execution across the business and continued progress against our strategic priorities,” said Bill Austen, Arrow’s interim president and chief executive officer. “We saw meaningful momentum across both Global Components and ECS, supported by improving leading indicators, strong performance in our value-added offerings, and continued momentum in cloud, AI, and datacentre activity.”
“In global components, demand continues to gradually recover from a prolonged cyclical correction,” commented Austen. “And in ECS, we delivered record gross profit and operating profit in the fourth quarter. The fundamentals of the business are strengthening.”
He added: “Our leading indicators continue to improve, book-to-bill and backlog are increasing, lead times are incrementally extending, visibility continues to be cloudy, but we remain disciplined in how we interpret these data points. Our strategic priority to purposely shift our mix is translating into higher quality results as value-added offerings and ECS continue to perform well, supporting margins, cash generation and positioning Arrow for profitable growth as the cycle continues to gradually improve.”
Q4 Global components sales climbed 22% year-over-year to $5.8 billion and the full year advanced 8% to $21.5 billion.
Arrow’s Enterprise Computing Services (ECS) business reported Q4 revenues up 16% to $2.86 billion and an 18% uptick to $9.4 billion in the full year.
In the regions, the Americas Q4 year-over-year component sales jumped 22% to $1.96 billion and in the full year rose 8.3% to $6.94 billion.
EMEA Q4 component sales gained 15.7% to $1.46 billion. In the full year sales edged up 0.4% to $5.67 billion.
Asia Q4 component sales soared 26.4 per cent year-over-year to $2.46 billion. Full year sales rose 12.1% to $8.88 billion.
“Our sales growth was underpinned by strength for both semiconductor and IP&E components. Demand trends across many of our core markets, such as transportation, industrial and aerospace and defence remain healthy and are showing activity levels higher than one year ago,” commented Rajesh Agrawal, Arrow’s Chief Financial Officer. “Our inventory is turning at a more normal pace compared to historical trends. Stated lead times in the fourth quarter began to modestly expand indicating improving demand levels. Taking all of this together, the market environment has incrementally improved over the last 90 days, reiterating our view that the business is in the early stages of a gradual cyclical upturn. Importantly, our focus remains on driving profitable growth.”
“We are closely monitoring the mix of our business, both from a regional and customer standpoint,” Agrawal continued. “We are seeing incremental improvements in both Western regions and mass market customers, but continue to expect a gradual recovery. Second, we are making a measured shift toward an increased mix of higher-margin value-added offerings, namely supply chain services, engineering and design services and integration services. These offerings are a natural extension for Arrow, building upon our core semi, IP&E and demand creation capabilities, which remain an important piece of our business.”
Bill Austen noted that Arrow’s value-added offerings continue to gain traction and adoption.
“The contribution of value-added services as a percentage of total operating income has grown over time, historically, value-added services accounted for less than 20% of total company operating income. In 2025, that mix has grown to roughly 30% and reflecting both strong demand and an intentional shift in our portfolio towards margin-accretive offerings. Looking ahead, we are focused on further increasing this mix to drive profitable growth.”
To support this strategy Arrow is sharpening its focus on higher-margin opportunities with deep technical engagement, value-added services and differentiated solutions.
In its global components business, the company appointed Chief Growth Officers across global classic distribution, global services and global IP&E distribution.
A Chief Revenue Officer was appointed in its ECS business to integrate sales, marketing as well as vendor and customer success to deliver optimal results across all regions. The direction is clear.
“We will continue to expand our higher-margin value-added offerings across both global components and ECS, deepening customer relationships and improving the quality and durability of our earnings over time,” said Austen.
