Artificial intelligence (AI) is changing not only what customers purchase from Arrow Electronics, but how and when they engage the distributor, executives said as the company reported sharply higher Q4 and full-year 2025 results.
Arrow Electronics reported Q4 sales of $8.746 billion, up 20% from $7.283 billion a year earlier. It also reported net income of $195 million, up 96% from $99 million.
For the full year 2025, Arrow Electronics sales reached $30.853 billion, up 10% from $27.923 billion. Meanwhile, net income increased 46% to $571 million from $392 million.
“Arrow delivered a strong fourth quarter, reflecting disciplined execution across the business and continued progress against our strategic priorities,” said Bill Austen, interim president and CEO. “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 datacenter activity.”
Impact of AI on Arrow Electronics sales in Q4 2025
Executives from Arrow’s Global Components and Enterprise Computing Solutions (ECS) groups said AI, edge computing and data-center modernization are increasing customer reliance on Arrow’s engineering, configuration and integration capabilities earlier in the design cycle.
“We are seeing customers move faster from concept to deployment, particularly in AI-driven and data-intensive applications,” Austen said. “That is changing how they rely on us — not just for parts, but for design support, configuration and integration.”
Rick Marano, president of Global Components, said AI-enabled devices are influencing component selection and increasing demand for engineering engagement.
“Customers are designing for more processing at the edge and for AI-enabled devices,” Marano said. “That is increasing the need for engineering engagement and design services early in the cycle.”
On the enterprise side, Eric Nowak, president of ECS, said Arrow Electronics is seeing stronger demand tied to AI workloads and hybrid infrastructure.
“We are seeing meaningful activity around data-center modernization and infrastructure required to support AI and advanced analytics,” Nowak said. “That plays directly into our integration and configuration capabilities.”
Executives said the growing complexity of AI-driven environments is shifting Arrow’s role beyond traditional distribution.
“Design complexity is rising,” Marano said. “Our engineering resources are becoming more central to how customers bring products to market.”
How Arrow Electronics tries to meet customer expectations
Nowak said enterprise customers increasingly rely on Arrow Electronics to assemble and configure infrastructure before it arrives on site.
“We are doing more integration work upstream so customers can deploy faster once equipment arrives,” he said.
Austen said customers’ expectations for speed and transparency are pushing Arrow Electronics to invest further in digital tools and supply-chain data visibility.
“Customers want better insight into availability, lead times and alternatives in real time,” he said. “Digital capabilities are critical to meeting those expectations.”
As AI adoption accelerates, executives said Arrow Electronics aims to engage customers earlier in planning and design phases.
“We want to be engaged when customers are designing and planning, not just when they are ordering,” Austen said.
With improving indicators and what executives described as the early stages of a cyclical recovery, Arrow Electronics said it is focused on expanding higher-margin, value-added capabilities tied to AI, cloud and data-center demand in 2026.
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