Arrow Electronics Reports Record Quarterly Revenue and EPS

Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its third quarter of 2026.

“Arrow delivered record quarterly revenue and EPS in the third quarter, with strong momentum across both our Global Components and Global Enterprise Computing Solutions businesses, demonstrating the power of our diversified business model,” said Bill Austen, Arrow’s interim chief executive officer. “Global Components continues to benefit from broad-based demand across geographies, customer segments and industry verticals, with a growing backlog and book-to-bill ratios well above parity. Global Enterprise Computing Solutions also experienced robust demand as customers continue to modernize their technology environments through investments in AI, cloud, cybersecurity and hybrid infrastructure solutions.”

“These results reflect the strength of our scalable operating model, disciplined execution and continued focus on expanding higher-margin, value-added services. We remain committed to strengthening our competitive position and broadening our capabilities to capture attractive growth opportunities. Supported by our solid financial foundation and disciplined approach to capital allocation, we are confident that Arrow is well positioned to deliver sustainable, profitable growth and create long-term value for all of our stakeholders.”

In the third quarter of 2026, sales increased 39 percent year over year on both an actual and constant currency basis. Changes in foreign currencies had a negative impact of $10.3 million on sales and a positive impact of $0.02 on earnings per share on a diluted basis compared to the third quarter of 2025.

In the third quarter of 2026, Global Components sales increased 43 percent year over year on both an actual and constant currency basis. Americas Components third-quarter sales increased 58 percent year over year. EMEA Components third-quarter sales increased 41 percent year over year and increased 42 percent year over year on a constant currency basis. Asia-Pacific Components third-quarter sales increased 33 percent year over year.

In the third quarter of 2026, Global ECS sales increased 29 percent year over year and increased 30 percent year over year on a constant currency basis. Global ECS gross billings increased 14 percent year over year. Global ECS third-quarter operating income increased 54 percent and non-GAAP operating income increased 53 percent year over year. EMEA ECS third-quarter sales increased 30 percent year over year and increased 32 percent year over year on a constant currency basis. Americas ECS third-quarter sales increased 27 percent year over year.

Other Financial Information

In the third quarter of 2026, Arrow used $441 million of cash flow from operations, primarily due to working capital investments to support customer demand. The company also repurchased $93 million of shares during the third quarter.

¹ A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

Fourth-Quarter 2026 Outlook

• Consolidated sales of $11.55 billion to $12.15 billion, with Global Components sales of $8.15 billion to $8.55 billion, and Global ECS sales of $3.40 billion to $3.60 billion

• Net income per share on a diluted basis of $6.25 to $6.45, and non-GAAP net income per share on a diluted basis of $7.00 to $7.20

• Average tax rate in the range of 23 percent to 25 percent

• Interest expense of approximately $50 million

• Changes in foreign currencies to decrease sales by approximately $88 million, and earnings per share on a diluted basis by $0.14 compared to the fourth quarter of 2025

• Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $86 million, and earnings per share on a diluted basis to decrease by $0.07 compared to the third quarter of 2026

Earnings Presentation

Please refer to the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company may use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the website noted above, in addition to following the company’s press releases, SEC filings, and public conference calls and webcasts.

Webcast and Conference Call Information

Arrow Electronics will host a conference call to discuss third-quarter 2026 financial results on Nov. 5, 2026, at 8:30 a.m. ET. A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/511113055. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.

About Arrow Electronics

Arrow Electronics (NYSE:ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With global 2025 sales of $30.9 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.

Key Business Metrics

Management uses gross billings as an operational metric to monitor operating performance of its Global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information in evaluating the overall performance of the Global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represents amounts invoiced to customers for goods and services during a specified period and does not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.

Information Relating to Forward-Looking Statements

This press release includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “would,” “could,” “believes,” “seeks,” “projected,” “potential,” “estimates,” and similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions or changes, including those that may occur in connection with recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; impacts of military conflict and sanctions; political instability and changes; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; disruptions, shortages, or inefficiencies in the supply chain; non-compliance with certain laws, regulations, or executive orders, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; other vagaries in the Global Components and the Global ECS markets; management transitions; changes to applicable laws, regulations, executive orders, or rules relating to government contractors and the resulting legal and reputational exposure, including but not limited to those relating to artificial intelligence, environmental, social, governance, cybersecurity, and data privacy issues; changes in relationships with key suppliers; commercial disputes, patent infringement claims, product liability lawsuits, or other legal proceedings; foreign tax and other loss contingencies; failure, disruption, or compromise of the company’s information systems or those of a third-party service provider, including unauthorized use or disclosure of company, supplier, or customer information; outbreaks, epidemics, pandemics, or public health crises; the effects of natural or man-made catastrophic events; and the company’s ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent Quarterly Report on Form 10-Q and the company’s most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, gross profit, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate, and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization; restructuring, integration, and other; net gains (losses) on investments; inventory recoveries related to the wind down of a business within Global Components (“impact of wind down”); tax adjustments related to the wind down of a business; and employee severance and benefits costs not related to restructuring initiative presented in cost of sales. Management believes that providing this additional information is useful to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company’s financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP.