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Arrow Electronics Inc. (NYSE: ARW) announced Monday the launch of Capstone, a new global business focused on interconnect, passive and electromechanical (IP&E) products and services.
The move aims to strengthen Arrow's position in the IP&E market as demand grows across artificial intelligence, data centers, aerospace, defense and industrial applications.
The launch is part of Arrow's broader restructuring of its global components business. The company is shifting from a geographic operating model to one organized around technology.
Under the new structure, Arrow will focus on three areas: semiconductors, IP&E, and supply chain and engineering services.
Capstone will provide specialized support to help customers select components, manage supply chains and scale production. The business will also remain connected to Arrow's semiconductor, engineering and digital capabilities.
Jörg Strughold, Arrow's chief growth officer for global IP&E and Capstone, said IP&E plays a vital role in electronic design. He added that a more specialized approach can help customers and suppliers gain greater value.
Arrow sees opportunities for Capstone across several high-growth markets, including AI data centers, 800-volt electrical systems, edge computing and commercial space applications. Other areas include building security, autonomous agriculture, medical technology and transportation.
The company said Capstone will help customers navigate the increasingly complex IP&E market while improving component selection and supply reliability.
Arrow plans to introduce Capstone at the electronica trade show in Munich, Germany, from Nov. 10-13. A dedicated Capstone website is expected to launch in the first quarter of 2027, allowing customers to source IP&E products directly. Until then, customers can continue purchasing these products through Arrow's existing website.
Arrow reported $31 billion in sales for 2025. The company provides electronic components and technology solutions to manufacturers and service providers worldwide.
The engineering technology solutions provider reported better-than-expected third-quarter 2026 results on Nov. 5. Revenue rose 39% year over year to $10.72 billion, beating the Street estimate of $10.01 billion. The company reported adjusted diluted earnings of $6.22 per share, exceeding the analyst consensus estimate of $4.96.
Arrow's Global Components and Global Enterprise Computing Solutions (ECS) segments delivered strong performance, with revenue increasing 43% and 29% year over year, respectively.
Interim CEO Bill Austen highlighted broad-based demand across geographies, customer segments and industries, supported by growing backlogs and strong demand for AI, cloud, cybersecurity and hybrid infrastructure solutions.
For the fourth quarter, Arrow Electronics forecast adjusted earnings of $7.00 to $7.20 per share, well above the $6.00 estimate. It expects revenue of $11.55 billion to $12.15 billion, exceeding Wall Street's estimate of $10.57 billion.
ARW Price Action: Arrow Electronics shares were up 0.23% at $181.50 during premarket trading on Monday, according to market data.
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