Arrow Electronics is one of the world's largest distributors of electronic components and enterprise IT products, acting as an intermediary between manufacturers and the businesses that use their products. Arrow operates two segments. Global Components (~70% of revenue) buys semiconductors, passive components, and related electronic parts from manufacturers and resells them to OEMs and electronics manufacturing services providers, who use these parts to build end products across industrial, transportation, aerospace and defense, medical, and consumer electronics markets. Global ECS (~30% of revenue) distributes enterprise IT products — infrastructure hardware, software, and cloud solutions — to value-added resellers and managed service providers. Arrow earns the spread between what it pays suppliers and what it charges customers, plus fees for value-added services like engineering support and supply chain management, which carry materially higher margins than standard distribution. In ECS, Arrow also operates ArrowSphere, a digital platform that helps resellers manage and scale their cloud and software businesses. Arrow's profitability is driven by volume, product mix, and the growing share of higher-margin services. As a distributor, Arrow carries substantial inventory and receivables, making working capital management and interest rates meaningful drivers of earnings. Arrow's capital allocation priorities are organic reinvestment, M&A, and share repurchases, having returned ~$3.6B to shareholders via buybacks since 2020.