Q&A with Arrow Electronics

1. What is the most significant market shift you’re seeing in electronic component distribution in 2026?

We enter 2026 with positive momentum and remain cautiously optimistic as the business remains in the early stages of a modest cyclical upturn. As we announced during our fourth-quarter earnings, 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.

2. How are customer expectations changing, and how is your company differentiating through service or digital capabilities?

A key part of our strategy is growing our higher-margin, value-added services, which deepen customer engagement and improve returns. These offerings, such as supply chain services, design engineering and integration services, extend our role from fulfillment to embedded partnership as we become an extension of customer and supplier product development, supply chain and go-to-market efforts.

3. What are the biggest operational challenges you’re working to overcome right now?

As we announced during our fourth-quarter earnings, we remain focused on executing with discipline in an environment that continues to improve gradually, while recognizing that the recovery remains different by region, end market and customer type. Our priority is to accelerate profitable growth as we continue to manage mix, costs and working capital carefully and align investment levels with the pace of demand.