Will Expanded Citrix Partnership and Strong 2025 Results Change Arrow Electronics' (ARW) Services-Led Narrative?

• In early February 2026, Citrix announced it will expand its agreement with Arrow Electronics from March 1, 2026, handing Arrow responsibility for managing all Citrix Service Providers across North America and Europe, while Arrow also reported 2025 sales of US$30.85 billion and net income of US$571.27 million alongside new Q1 2026 guidance.
• This combination of strong recent results, guidance, and an expanded Citrix partnership underscores Arrow’s push toward higher-margin, service-led offerings and operational efficiency.
• Next, we’ll examine how the expanded Citrix Service Provider engagement could reshape Arrow’s investment narrative around services-led growth.

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Arrow Electronics Investment Narrative Recap

To own Arrow Electronics, you need to believe its shift toward services, software, and higher-value distribution can offset pressure on traditional component margins and working capital. Right now, the key short term catalyst is execution on higher-margin, service-led growth, while the biggest risk is that digital procurement and direct sourcing keep chipping away at Arrow’s role in the chain. The expanded Citrix Service Provider engagement supports the services story, but does not fundamentally remove that disintermediation risk.

The Citrix expansion sits alongside Arrow’s recent 2025 results, where the company reported US$30,852.94 million in sales and net income of US$571.27 million, and issued Q1 2026 guidance. Together, they highlight management’s focus on scaling value-added offerings while trying to keep earnings and cash generation on a steadier footing. For investors watching catalysts, this latest Citrix move fits directly into the push for more predictable, services-led revenue rather than being a disconnected headline.

Yet against this improving services picture, growing digital procurement by large OEMs remains a risk investors should be aware of, because it could eventually...

Read the full narrative on Arrow Electronics (it's free!)

Arrow Electronics' narrative projects $35.2 billion revenue and $734.1 million earnings by 2028. This requires 7.3% yearly revenue growth and a $266.9 million earnings increase from $467.2 million today.

Uncover how Arrow Electronics' forecasts yield a $108.25 fair value, a 31% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already assuming revenue above US$35 billion and earnings near US$1 billion, but this Citrix deal may either strengthen that upbeat services story or highlight how margin pressure and digital disruption could still surprise you on the downside, so it is worth comparing these different views before deciding what you believe.

Explore 2 other fair value estimates on Arrow Electronics - why the stock might be worth as much as $108.25!

Build Your Own Arrow Electronics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arrow Electronics research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Arrow Electronics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arrow Electronics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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