Arrow Electronics

United States · www.arrow.com · 21 vendors

Arrow Electronics, Inc. is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company guides innovation for leading technology manufacturers and service providers, helping them design, distribute, and deploy forward-thinking products.

Resilience scores

Disruption prediction

Arrow Electronics has an estimated 11% probability of disruption in the next 6 months.

14 of Arrow Electronics's 21 vendors monitored for disruptions.

Technology vendors

Services catalogue

1 service in catalogue across 1 category; runs on 21 sub-vendors.

Insights

Last updated 2026-09-13 · revision 1

21 direct vendors, 243 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Migration Readiness: 9/10

Assessed by AI based on technology stack characteristics (cloud-native vs legacy, containerization, microservices), regulatory environment, data residency requirements, financial stability, and vendor lock-in risks. The score ranges from 0-10, where higher scores indicate better readiness for technology migration.

Arrow Electronics demonstrates high migration readiness due to its advanced and cloud-centric internal tech stack, which includes multiple public cloud providers (Azure, AWS, Google Cloud Platform) and multicloud management platforms. The use of REST APIs, RPA, and ISO-certified cloud infrastructure, along with products like ArrowSphere designed for multi-cloud lifecycle management, indicates a strong existing foundation for cloud adoption and modernization. The company's embrace of key technologies such as cloud lifecycle management, multicloud orchestration, and B2B API integration further supports its ability to migrate and integrate new systems. However, the absence of data on specific regulatory environments and data residency requirements introduces potential unknown complexities that could impact migration strategies. Regarding vendor relationships, while 'Total Vendors: 0' is stated, the presence of 'Total Services: 40' and 'Vendor Geographic Diversity: 5 unique countries' (United States, United Kingdom, Japan, Germany, Australia) suggests reliance on external providers. The adoption of a multi-cloud strategy indicates a proactive approach to mitigating single-cloud vendor lock-in, although the overall 'Vendor Lock-in Risk: Unknown' remains a factor. The geographic diversity of vendor HQs is a positive aspect for managing migration complexity. Overall, the technological maturity and existing cloud infrastructure point to a high readiness for further migration and modernization efforts.

Compliance

4 in-scope frameworks identified; showing 3.

NIS2 (source) — Assessment Required

Arrow operates in multiple sectors that could fall under NIS2 scope including digital infrastructure, supply chain services, and potentially manufacturing support. As a large enterprise with significant EU operations, they likely exceed size thresholds. However, specific sector classification requires detailed assessment of their exact business activities in relation to NIS2 entity definitions.

Evidence: https://www.arrow.com/company/expertise/supply-chain, https://www.arrow.com/company/overview/facilities/office-locations

GDPR (source) — Assessment Required

Arrow has significant EU operations including major distribution center in Venlo, Netherlands, and offices across multiple EU countries. They process personal data of EU residents through their business operations, employee data, and customer interactions. Non-compliance could result in fines up to 4% of global annual revenue. Given Arrow's Fortune 500 status (ranked 154), this represents substantial financial risk.

Evidence: https://www.arrow.com/company/privacy-center/privacy-policy, https://www.arrow.com/company/overview/facilities/office-locations, https://www.arrow.com/company/overview/facilities/venlo

ISO 27001 (source) — Assessment Required

As a global technology distributor handling sensitive customer and supplier data, ISO 27001 certification would be expected for information security management. The risk is moderate as lack of certification could impact customer confidence and competitive positioning, particularly in enterprise markets.

Evidence: https://www.arrow.com/company/expertise/security, https://www.arrow.com/company/privacy-center/privacy-policy

Financials

Three-year financials

Financial Resilience Score: 6/10

Arrow Electronics is one of the world's largest electronic components and enterprise computing solutions distributors, with revenues consistently in the high-$20B to low-$30B range. The company demonstrated strong cyclical upside during the 2021-2022 semiconductor supercycle, posting record revenues of $33.6B in 2022, but has since experienced meaningful revenue and earnings compression as the components market normalized and inventory digestion weighed on demand through 2023 and into 2024. This cyclicality is a structural feature of the distribution business and represents a key resilience consideration. Arrow maintains a diversified business across two primary segments—Global Components and Global Enterprise Computing Solutions (ECS)—which provides some buffer against single-segment downturns. The company has a long track record of navigating industry cycles, having operated for over 70 years. Its balance sheet carries moderate leverage, with long-term debt typically in the $3B–$4B range, and the company actively manages capital through share buybacks. Interest coverage, while healthy at peak earnings, tightens during downturns, warranting attention. Geographic diversification across the Americas, EMEA, and Asia-Pacific reduces concentration risk, though exposure to global trade dynamics, tariffs, and semiconductor supply chain disruptions introduces macro sensitivity. The company's asset-light distribution model limits capital expenditure requirements but also constrains gross margins, which typically run in the 12–14% range, leaving limited buffer if revenues decline sharply. Key risks include customer and supplier concentration (dependence on major semiconductor manufacturers), working capital intensity (large receivables and inventory balances), and the inherently cyclical nature of the electronics distribution industry. The company's ability to generate free cash flow during downturns—partly through inventory liquidation—provides a meaningful offset to earnings volatility.

Key strengths: Scale as one of the world's two largest electronic components distributors, Diversified two-segment model: Global Components and Global ECS, Geographic diversification across Americas, EMEA, and Asia-Pacific, Long operating history (70+ years) with demonstrated cycle navigation, Active capital return program including share repurchases, Asset-light distribution model with manageable capex requirements, Strong supplier relationships with leading semiconductor manufacturers

Risk factors: High cyclicality tied to semiconductor and electronics demand cycles, Thin gross margins (~12–14%) limiting earnings buffer during downturns, Moderate financial leverage with $3B–$4B in long-term debt, Working capital intensity with large inventory and receivables balances, Supplier and customer concentration risk, Exposure to global trade policy, tariffs, and supply chain disruptions, Revenue declined ~14% in 2023 reflecting post-supercycle normalization, Competitive pressure from direct manufacturer sales and other distributors

Revenue by geography

Revenue by product/service

Workforce by country

Signed-in users can see whether their own company is exposed to this vendor's disruption, plus the full sub-vendor list and country breakdowns, every in-scope compliance framework plus gaps and next steps, and alerts when any of it changes.

View the full interactive report