ARW - Supplier loss is an incremental but manageable negative; maintain Buy rating and $260 PT

Research evidence excerpt

ARW - Supplier loss is an incremental but manageable negative; maintain Buy rating and $260 PT

Truist Securities

Equity Research Report June 29, 2026

TMT: Technology Distributors Arrow Electronics, Inc. (ARW)

ARW - Supplier loss is an incremental but manageable negative; William Stein, CFA

212-319-3808 maintain Buy rating and $260 PT

William.Stein@truist.com

Elliott Smith, CFA Loss is incremental but manageable negative. CRN recently reported that ARW's

212-303-4150 supplier Dell Technologies (DELL, Hold, Niknam) is terminating its distribution relationship

Elliott.Smith@truist.com with ARW. We believe the loss is significant at ~4% of sales (and perhaps somewhat smaller

portion of EBIT). This is a clear headwind for ARW; however, we believe the loss will be

Aidan Wilson overwhelmed by cyclical strength across ARW's business. We make no changes to our

212-319-3429 model. Maintain Buy rating and $260 price target.

Aidan.Wilson@truist.com

Dell ends decade-long distribution relationship with ARW. Last week, CRN reported

that DELL will terminate its distribution relationship with ARW, which distributes enterprise

Stock Rating BUY solutions through its ECS segment. The article cited two factors for the termination: (1) ARW

Unchanged does not carry DELL's full product line that includes client devices, and (2) potentially the

departure of the prior CEO, Sean Kerins, who had a strong relationship with DELL.

Price Target $260.00

Unchanged Our take on why this happened. After speaking with ARW, we believe DELL likely wanted

ARW to provide a variety of services that did not fit into ARW's scope of business, including

(1) carrying DELL's full line of products, including client devices, (2) carrying inventory

of DELL's products, and (3) providing coverage of customers in Asia.