Open the filing on EDGARArrow Electronics Reports Strong Second-Quarter 2026 Results
--Total Revenue of $10.0 billion, up 32% Year-over-Year, Above High End of Guidance--
--Diluted earnings Per Share of $5.26 and Non-GAAP Earnings Per Share of $5.45, Both Above High End of Guidance--
CENTENNIAL, Colo.--(BUSINESS WIRE)- Aug. 6, 2026--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its second quarter of 2026.
“Arrow delivered another strong quarter, underpinned by meaningful year-over-year growth in revenue, profit margin and earnings per share, all of which exceeded expectations,” said Bill Austen, Arrow’s interim president and chief executive officer. “Both our Global Components and Global Enterprise Computing Solutions businesses continue to demonstrate strong strategic execution, supported by healthy demand across regions, end markets and customer segments. Book-to-bill ratios remain well above parity, and our backlog continues to build in both size and duration.”
“Our results are the tangible outcome of the dedication, effort, decisions, and tradeoffs put forward by everyone at Arrow. The results also reinforce our belief in the strength of our business and our ability to continue delivering profitable growth. Together with our higher-margin, value-added offerings, scalable operating model and focused capital allocation strategy, we believe Arrow is well positioned to create long-term value for our suppliers, customers and shareholders.”
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | | July 4, | June 28, | |
|---|
| Arrow Consolidated |
| (in millions except per share data) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Consolidated sales | $9,992 | $7,580 | 32% | $19,466 | $14,394 | 35% |
| Net income attributable to shareholders | 273 | 188 | 45% | 508 | 267 | 90% |
| Net income per diluted share | 5.26 | 3.59 | 47% | 9.81 | 5.09 | 93% |
| Non-GAAP net income attributable to shareholders | 283 | 127 | 122% | 553 | 222 | 149% |
| Non-GAAP net income per diluted share | 5.45 | 2.43 | 124% | 10.67 | 4.23 | 152% |
In the second quarter of 2026, sales increased 32 percent year over year and increased 30 percent year over year on a constant currency basis. Changes in foreign currencies had a positive impact on growth of $93.5 million on sales and $0.09 on earnings per share on a diluted basis compared to the second quarter of 2025.
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | | July 4, | June 28, | |
|---|
| Global Components |
| (in millions) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Global Components sales | $7,366 | $5,285 | 39% | $14,006 | $10,063 | 39% |
| Global Components operating income | 396 | 187 | 112% | 760 | 358 | 112% |
| Global Components non-GAAP operating income | 397 | 189 | 110% | 762 | 362 | 111% |
In the second quarter of 2026, Global Components sales increased 39 percent year over year and increased 38 percent year over year on a constant currency basis. Americas Components second-quarter sales increased 44 percent year over year. EMEA Components second-quarter sales increased 36 percent year over year and increased 32 percent year over year on a constant currency basis. Asia-Pacific Components second-quarter sales increased 38 percent year over year and increased 37 percent year over year on a constant currency basis.
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | | July 4, | June 28, | |
|---|
| Global Enterprise Computing Solutions ("ECS") |
| (in millions) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Global ECS sales | $2,627 | $2,295 | 14% | $5,460 | $4,331 | 26% |
| Global ECS operating income | 85 | 97 | (12)% | 189 | 174 | 9% |
| Global ECS non-GAAP operating income | 86 | 98 | (12)% | 191 | 176 | 8% |
In the second quarter of 2026, Global ECS sales increased 14 percent year over year and increased 13 percent year over year on a constant currency basis. Global ECS gross billings increased 14 percent year over year. Global ECS second-quarter operating income and non-GAAP operating income decreased 12 percent year over year. EMEA ECS second-quarter sales increased 20 percent year over year and increased 17 percent year over year on a constant currency basis. Americas ECS second-quarter sales increased 8 percent year over year.
Other Financial Information
In the second quarter of 2026, Arrow generated $318 million of cash flow from operations partly due to the timing of cash flows within Global Components supply chain services offerings. Arrow also repurchased $43 million of shares in the second quarter of 2026.
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
Third-Quarter 2026 Outlook
- Consolidated sales of $9.60 billion to $10.20 billion, with Global Components sales of $7.50 billion to $7.90 billion, and Global ECS sales of $2.10 billion to $2.30 billion
- Net income per share on a diluted basis of $4.72 to $4.92, and non-GAAP net income per share on a diluted basis of $4.83 to $5.03
- 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 $27 million, and earnings per share on a diluted basis by $0.01 compared to the third quarter of 2025
- Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $50 million, and earnings per share on a diluted basis to decrease by $0.04 compared to the second quarter of 2026
| Quarter Ended | | Quarter Ended | |
|---|
| October 3, | September 27, | | October 3, | July 4, | |
|---|
| Third-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation |
| NON-GAAP SALES RECONCILIATION |
| (in billions) | | 2026 | 2025 | % Change | | 2026 | 2026 | % Change |
| Global Components sales, GAAP | $ | $7.50 - 7.90 | $5.56 | 35% - 42% | $ | $7.50 - 7.90 | $7.37 | 2% - 7% |
| Impact of changes in foreign currencies | | - | (0.01) | | | - | (0.03) | |
| Global Components sales, constant currency | $ | $7.50 - 7.90 | $5.55 | 35% - 42% | $ | $7.50 - 7.90 | $7.34 | 2% - 8% |
| Global ECS sales, GAAP | $ | $2.10 - 2.30 | $2.16 | (3)% - 7% | $ | $2.10 - 2.30 | $2.63 | (20)% - (12)% |
| Impact of changes in foreign currencies | | - | (0.02) | | | - | (0.02) | |
| Global ECS sales, constant currency | $ | $2.10 - 2.30 | $2.14 | (2)% - 8% | $ | $2.10 - 2.30 | $2.61 | (19)% - (12)% |
Reported
Intangible amortization
Restructuring &
GAAP measure expense integration charges
Non-GAAP measure
Net income per diluted share
$4.72 to $4.92
$0.07
$0.04
$4.83 to $5.03
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 second-quarter 2026 financial results on Aug. 6, 2026, at 4:30 p.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/235232794. 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 represent amounts invoiced to customers for goods and services during a specified period and do 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
Forward-looking statements notice
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 relationships with key suppliers; management transitions, including the company’s search for a permanent CEO; 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; 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 environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; 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 the reader 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Quarter Ended | Six Months Ended |
|---|
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 |
|---|
| Sales | $9,992,237 | $7,579,947 | $19,465,785 | $14,393,964 |
| Cost of sales | 8,867,028 | 6,731,290 | 17,250,116 | 12,771,315 |
| Gross profit | 1,125,209 | 848,657 | 2,215,669 | 1,622,649 |
| Operating expenses: | | | | |
| Selling, general, and administrative | 688,138 | 600,990 | 1,344,279 | 1,163,306 |
| Depreciation and amortization | 35,599 | 35,162 | 71,652 | 70,972 |
| Restructuring, integration, and other | 24,139 | 21,919 | 60,803 | 39,232 |
| 747,876 | 658,071 | 1,476,734 | 1,273,510 |
| Operating income | 377,333 | 190,586 | 738,935 | 349,139 |
| Equity in earnings (losses) of affiliated companies | 2,065 | (659) | 2,961 | 661 |
| Gain on investments, net | 12,044 | 103,976 | 6,252 | 104,116 |
| Post-retirement expense | (999) | (664) | (1,961) | (1,286) |
| Interest and other financing expense, net | (37,297) | (60,283) | (85,781) | (116,465) |
| Income before income taxes | 353,146 | 232,956 | 660,406 | 336,165 |
| Provision for income taxes | 80,311 | 45,934 | 151,541 | 69,279 |
| Consolidated net income | 272,835 | 187,022 | 508,865 | 266,886 |
| Noncontrolling interests | 124 | (727) | 1,048 | (583) |
| Net income attributable to shareholders | $272,711 | $187,749 | $507,817 | $267,469 |
| Net income per share: | | | | |
| Basic | $5.32 | $3.62 | $9.90 | $5.14 |
| Diluted | $5.26 | $3.59 | $9.81 | $5.09 |
| Weighted-average shares outstanding: | | | | |
| Basic | 51,306 | 51,856 | 51,314 | 52,057 |
| Diluted | 51,867 | 52,342 | 51,787 | 52,504 |
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
| July 4, | December 31, |
|---|
| 2026 | 2025 |
|---|
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $244,631 | $306,467 |
| Accounts receivable, net | 28,008,735 | 19,738,666 |
| Inventories | 5,939,587 | 5,081,863 |
| Other current assets | 796,035 | 533,035 |
| Total current assets | 34,988,988 | 25,660,031 |
| Property, plant, and equipment, at cost: | | |
| Land | 5,691 | 5,691 |
| Buildings and improvements | 205,840 | 199,433 |
| Machinery and equipment | 1,728,678 | 1,715,415 |
| 1,940,209 | 1,920,539 |
| Less: Accumulated depreciation and amortization | (1,479,390) | (1,445,889) |
| Property, plant, and equipment, net | 460,819 | 474,650 |
| Investments in affiliated companies | 62,149 | 59,315 |
| Intangible assets, net | 67,514 | 77,022 |
| Goodwill | 2,109,446 | 2,120,071 |
| Other assets | 687,765 | 687,049 |
| Total assets | $38,376,681 | $29,078,138 |
| LIABILITIES AND EQUITY | | |
| Current liabilities: | | |
| Accounts payable | $27,107,855 | $17,383,796 |
| Accrued expenses | 1,516,824 | 1,461,261 |
| Short-term borrowings, including current portion of long-term debt | 117,539 | 341 |
| Total current liabilities | 28,742,218 | 18,845,398 |
| Long-term debt | 2,053,041 | 3,084,715 |
| Other liabilities | 502,541 | 489,326 |
| Equity: | | |
| Shareholders’ equity: | | |
| Common stock, par value $1: | | |
| Authorized - 160,000 shares in both 2026 and 2025 | | |
| Issued - 56,094 and 55,838 shares in 2026 and 2025, respectively | 56,094 | 55,838 |
| Capital in excess of par value | 613,560 | 586,993 |
| Treasury stock (5,119 and 4,768 shares in 2026 and 2025, respectively), at cost | (554,346) | (483,571) |
| Retained earnings | 7,059,909 | 6,552,092 |
| Accumulated other comprehensive loss | (170,036) | (126,640) |
| Total shareholders’ equity | 7,005,181 | 6,584,712 |
| Noncontrolling interests | 73,700 | 73,987 |
| Total equity | 7,078,881 | 6,658,699 |
| Total liabilities and equity | $38,376,681 | $29,078,138 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Quarter Ended |
|---|
| July 4, 2026 | June 28, 2025 |
|---|
| Cash flows from operating activities: | | |
| Consolidated net income: | $272,835 | $187,022 |
| Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | | |
| Depreciation and amortization | 35,599 | 35,162 |
| Amortization of stock-based compensation | 12,816 | 11,641 |
| Equity in earnings of affiliated companies | (2,065) | 659 |
| Deferred income taxes | 2,649 | 11,092 |
| Loss on dispostions of businesses, net | 14,264 | - |
| Gain on investments, net | (11,917) | (103,863) |
| Other | 289 | 376 |
| Change in assets and liabilities | | |
| Accounts receivable, net | (2,058,576) | (2,627,707) |
| Inventories | (219,734) | 108,833 |
| Accounts payable | 2,364,684 | 2,200,976 |
| Accrued expenses | 105,671 | (2,027) |
| Other assets and liabilities | (198,166) | (28,060) |
| Net cash provided by (used for) operating activities | 318,349 | (205,896) |
| Cash flows from investing activities: | | |
| Acquisition of property, plant, and equipment | (21,138) | (18,618) |
| Proceeds from settlement of net investment hedges | - | 24,858 |
| Proceeds from sale of investments in equity securities | - | 100,000 |
| Net cash (used for) provided by investing activities | (21,138) | 106,240 |
| Cash flows from financing activities: | | |
| Change in short-term and other borrowings | 4,581 | 274,187 |
| (Repayments of) proceeds from long-term bank borrowings, net | (300,074) | 50,566 |
| Redemption of notes | - | (350,000) |
| Proceeds from exercise of stock options | 5,393 | 2,299 |
| Repurchases of common stock | (41,855) | (50,736) |
| Other | (153) | (148) |
| Net cash used for financing activities | (332,108) | (73,832) |
| Effect of exchange rate changes on cash | (6,984) | 163,576 |
| Net decrease in cash and cash equivalents | (41,881) | (9,912) |
| Cash and cash equivalents at beginning of period | 286,512 | 231,882 |
| Cash and cash equivalents at end of period | $244,631 | $221,970 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended |
|---|
| July 4, 2026 | June 28, 2025 |
|---|
| Cash flows from operating activities: | | |
| Consolidated net income: | $508,865 | $266,886 |
| Adjustments to reconcile consolidated net income to net cash provided by operations: | | |
| Depreciation and amortization | 71,652 | 70,972 |
| Amortization of stock-based compensation | 22,415 | 30,200 |
| Equity in earnings of affiliated companies | (2,961) | (661) |
| Deferred income taxes | 12,403 | 5,251 |
| Loss on disposition of businesses, net | 22,830 | - |
| Gain on investments, net | (6,046) | (103,895) |
| Other | (173) | (302) |
| Change in assets and liabilities: | | |
| Accounts receivable, net | (8,338,902) | (1,896,481) |
| Inventories | (876,277) | 46,449 |
| Accounts payable | 9,755,373 | 1,949,919 |
| Accrued expenses | 112,581 | (81,710) |
| Other assets and liabilities | (263,659) | (140,845) |
| Net cash provided by operating activities | 1,018,101 | 145,783 |
| Cash flows from investing activities: | | |
| Acquisition of property, plant, and equipment | (53,246) | (43,597) |
| Proceeds from settlement of net investment hedges | - | 24,858 |
| Proceeds from sale of investments in equity securities | - | 100,000 |
| Net cash (used for) provided by investing activities | (53,246) | 81,261 |
| Cash flows from financing activities: | | |
| Change in short-term and other borrowings | 7,262 | 454,803 |
| Repayments of long-term bank borrowings, net | (923,170) | (413,657) |
| Redemption of notes | - | (350,000) |
| Proceeds from exercise of stock options | 10,431 | 3,203 |
| Repurchases of common stock | (75,147) | (110,149) |
| Other | (153) | (148) |
| Net cash used for financing activities | (980,777) | (415,948) |
| Effect of exchange rate changes on cash | (45,914) | 222,067 |
| Net (decrease) increase in cash and cash equivalents | (61,836) | 33,163 |
| Cash and cash equivalents at beginning of period | 306,467 | 188,807 |
| Cash and cash equivalents at end of period | $244,631 | $221,970 |
ECS Gross Billings
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | | July 4, | June 28, | |
|---|
| 2026 | 2025 | % Change | 2026 | 2025 | % Change |
|---|
| Global Enterprise Computing Solutions - Gross Billings |
| Gross billings: | | | | | | |
| Americas ECS | $2,693,364 | $2,543,759 | 6% | $5,652,975 | $4,851,496 | 17% |
| EMEA ECS | 3,162,931 | 2,596,209 | 22% | 6,636,643 | 4,927,426 | 35% |
| Global ECS | $5,856,295 | $5,139,968 | 14% | $12,289,618 | $9,778,922 | 26% |
- Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue.
NON-GAAP SALES RECONCILIATION
| Quarter Ended | |
|---|
| July 4, 2026 | June 28, 2025 | % Change |
|---|
| Consolidated sales, as reported | $9,992,237 | $7,579,947 | 31.8% |
| Impact of changes in foreign currencies | - | 93,482 | |
| Consolidated sales, constant currency | $9,992,237 | $7,673,429 | 30.2% |
| Global Components sales, as reported | $7,365,625 | $5,284,898 | 39.4% |
| Impact of changes in foreign currencies | - | 58,847 | |
| Global Components sales, constant currency | $7,365,625 | $5,343,745 | 37.8% |
| Americas Components sales, as reported | $2,454,521 | $1,707,522 | 43.7% |
| Impact of changes in foreign currencies | - | 203 | |
| Americas Components sales, constant currency | $2,454,521 | $1,707,725 | 43.7% |
| EMEA Components sales, as reported | $1,938,784 | $1,426,944 | 35.9% |
| Impact of changes in foreign currencies | - | 45,924 | |
| EMEA Components sales, constant currency | $1,938,784 | $1,472,868 | 31.6% |
| Asia Components sales, as reported | $2,972,320 | $2,150,432 | 38.2% |
| Impact of changes in foreign currencies | - | 12,720 | |
| Asia Components sales, constant currency | $2,972,320 | $2,163,152 | 37.4% |
| Global ECS sales, as reported | $2,626,612 | $2,295,049 | 14.4% |
| Impact of changes in foreign currencies | - | 34,635 | |
| Global ECS sales, constant currency | $2,626,612 | $2,329,684 | 12.7% |
| Americas ECS sales, as reported | $1,135,513 | $1,052,785 | 7.9% |
| Impact of changes in foreign currencies | - | (185) | |
| Americas ECS sales, constant currency | $1,135,513 | $1,052,600 | 7.9% |
| EMEA ECS sales, as reported | $1,491,099 | $1,242,264 | 20.0% |
| Impact of changes in foreign currencies | - | 34,820 | |
| EMEA ECS sales, constant currency | $1,491,099 | $1,277,084 | 16.8% |
NON-GAAP SALES RECONCILIATION
| Six Months Ended | |
|---|
| July 4, 2026 | June 28, 2025 | % Change |
|---|
| Consolidated sales, as reported | $19,465,785 | $14,393,964 | 35.2% |
| Impact of changes in foreign currencies | - | 366,996 | |
| Consolidated sales, constant currency | $19,465,785 | $14,760,960 | 31.9% |
| Global Components sales, as reported | $14,005,960 | $10,062,620 | 39.2% |
| Impact of changes in foreign currencies | - | 213,545 | |
| Global Components sales, constant currency | $14,005,960 | $10,276,165 | 36.3% |
| Americas Components sales, as reported | $4,766,668 | $3,276,092 | 45.5% |
| Impact of changes in foreign currencies | - | 791 | |
| Americas Components sales, constant currency | $4,766,668 | $3,276,883 | 45.5% |
| EMEA Components sales, as reported | $3,703,963 | $2,766,945 | 33.9% |
| Impact of changes in foreign currencies | - | 188,215 | |
| EMEA Components sales, constant currency | $3,703,963 | $2,955,160 | 25.3% |
| Asia Components sales, as reported | $5,535,329 | $4,019,583 | 37.7% |
| Impact of changes in foreign currencies | - | 24,539 | |
| Asia Components sales, constant currency | $5,535,329 | $4,044,122 | 36.9% |
| Global ECS sales, as reported | $5,459,825 | $4,331,344 | 26.1% |
| Impact of changes in foreign currencies | - | 153,451 | |
| Global ECS sales, constant currency | $5,459,825 | $4,484,795 | 21.7% |
| Americas ECS sales, as reported | $2,320,563 | $1,962,688 | 18.2% |
| Impact of changes in foreign currencies | - | 4,550 | |
| Americas ECS sales, constant currency | $2,320,563 | $1,967,238 | 18.0% |
| EMEA ECS sales, as reported | $3,139,262 | $2,368,656 | 32.5% |
| Impact of changes in foreign currencies | - | 148,901 | |
| EMEA ECS sales, constant currency | $3,139,262 | $2,517,557 | 24.7% |
| Reported | Intangible | Restructuring, | Impact of | | |
|---|
| GAAP | amortization | Integration | Wind | | Non-GAAP |
|---|
| measure | expense | and other | Down | Other | measure |
|---|
| Three months ended July 4, 2026 |
| Operating income | $377,333 | $4,753 | $24,139 | $(2,970) | $ - | $403,255 |
| Income before income taxes | 353,146 | 4,753 | 24,139 | (2,970) | (12,044) | 367,024 |
| Provision for income taxes | 80,311 | 1,162 | 6,752 | (944) | (2,892) | 84,389 |
| Consolidated net income | 272,835 | 3,591 | 17,387 | (2,026) | (9,152) | 282,635 |
| Noncontrolling interests | 124 | - | - | - | - | 124 |
| Net income attributable to shareholders | $272,711 | $3,591 | $17,387 | $(2,026) | $(9,152) | $282,511 |
| Net income per diluted share | $5.26 | $0.07 | $0.34 | $(0.04) | $(0.18) | $5.45 |
| Effective tax rate | 22.7% | | | | | 23.0% |
| Reported | Intangible | Restructuring, | Impact of | | |
|---|
| GAAP | amortization | Integration | Wind | | Non-GAAP |
|---|
| measure | expense | and other | Down | Other | measure |
|---|
| Three months ended June 28, 2025 |
| Operating income | $190,586 | $4,870 | $21,919 | $(2,172) | $172 | $215,375 |
| Income before income taxes | 232,956 | 4,870 | 21,919 | (2,172) | (103,804) | 153,769 |
| Provision for income taxes | 45,934 | 1,208 | 5,747 | (689) | (25,119) | 27,081 |
| Consolidated net income | 187,022 | 3,662 | 16,172 | (1,483) | (78,685) | 126,688 |
| Noncontrolling interests | (727) | 24 | - | - | - | (703) |
| Net income attributable to shareholders | $187,749 | $3,638 | $16,172 | $(1,483) | $(78,685) | $127,391 |
| Net income per diluted share | $3.59 | $0.07 | $0.31 | $(0.03) | $(1.50) | $2.43 |
| Effective tax rate | 19.7% | | | | | 17.6% |
| Reported | Intangible | Restructuring, | Impact of | | |
|---|
| GAAP | amortization | Integration | Wind | | Non-GAAP |
|---|
| measure | expense | and other | Down | Other | measure |
|---|
| Six months ended July 4, 2026 |
| Operating income | $738,935 | $9,518 | $60,803 | $(5,218) | $ - | $804,038 |
| Income before income taxes | 660,406 | 9,518 | 60,803 | (5,218) | (6,252) | 719,257 |
| Provision for income taxes | 151,541 | 2,326 | 14,804 | (1,651) | (1,501) | 165,519 |
| Consolidated net income | 508,865 | 7,192 | 45,999 | (3,567) | (4,751) | 553,738 |
| Noncontrolling interests | 1,048 | - | - | - | - | 1,048 |
| Net income attributable to shareholders | $507,817 | $7,192 | $45,999 | $(3,567) | $(4,751) | $552,690 |
| Net income per diluted share | $9.81 | $0.14 | $0.86 | $(0.07) | $(0.09) | $10.67 |
| Effective tax rate | 22.9% | | | | | 23.0% |
| Reported | Intangible | Restructuring, | Impact of | | |
|---|
| GAAP | amortization | Integration | Wind | | Non-GAAP |
|---|
| measure | expense | and other | Down | Other | measure |
|---|
| Six months ended June 28, 2025 |
| Operating income | $349,139 | $10,230 | $39,232 | $(4,639) | $172 | $394,134 |
| Income before income taxes | 336,165 | 10,230 | 39,232 | (4,639) | (103,944) | 277,044 |
| Provision for income taxes | 69,279 | 2,524 | 10,098 | (1,470) | (25,152) | 55,279 |
| Consolidated net income | 266,886 | 7,706 | 29,134 | (3,169) | (78,792) | 221,765 |
| Noncontrolling interests | (583) | 156 | - | - | - | (427) |
| Net income attributable to shareholders | $267,469 | $7,550 | $29,134 | $(3,169) | $(78,792) | $222,192 |
| Net income per diluted share | $5.09 | $0.14 | $0.55 | $(0.06) | $(1.50) | $4.23 |
| Effective tax rate | 20.6% | | | | | 20.0% |
(1) Includes recoveries of inventory related to the wind down of a business.
(2) Other includes gain on investments, net.
(3) Other includes gain on investments, net, non-recurring tax items, and employee severance and benefits costs not related to restructuring initiative presented in cost of sales.
(4) Includes restructuring, integration, and other charges, and tax adjustments related to the wind down of a business.
(5) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.
(6) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.
SEGMENT INFORMATION
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | July 4, | June 28, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Sales: | | | | |
| Global Components | $7,365,625 | $5,284,898 | $14,005,960 | $10,062,620 |
| Global ECS | 2,626,612 | 2,295,049 | 5,459,825 | 4,331,344 |
| Consolidated | $9,992,237 | $7,579,947 | $19,465,785 | $14,393,964 |
| Operating income: | | | | |
| Global Components (a) | $396,275 | $186,808 | $759,794 | $358,193 |
| Global ECS (b) | 85,375 | 96,969 | 189,113 | 174,283 |
| Segment operating income | $481,650 | $283,777 | $948,907 | $532,476 |
| Corporate operating expenses (c) | (104,317) | (93,191) | (209,972) | (183,337) |
| Consolidated | $377,333 | $190,586 | $738,935 | $349,139 |
- Global Components operating income includes $3.0 million and $5.2 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2026, respectively, and $2.2 million and $4.6 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2025.
- Global ECS operating income includes $26.6 million and $48.3 million in losses related to the underperformance of certain non-cancellable multi-year purchase obligations during the second quarter and first six months of 2026, respectively.
- Corporate unallocated operating expenses includes restructuring, integration, and other charges of $24.1 million and $60.8 million for the second quarter and first six months of 2026, respectively, and $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively.
NON-GAAP SEGMENT RECONCILIATION
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | July 4, | June 28, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Global Components gross profit, as reported | $856,503 | $591,454 | $1,663,251 | $1,146,399 |
| Impact of wind down to inventory | (2,970) | (2,172) | (5,218) | (4,639) |
| Other | - | 172 | - | 172 |
| Global Components non-GAAP gross profit | $853,533 | $589,454 | $1,658,033 | $1,141,932 |
| Global Components gross profit as a percentage of sales, as reported | 11.6% | 11.2% | 11.9% | 11.4% |
| Global Components non-GAAP gross profit as a percentage of sales | 11.6% | 11.2% | 11.8% | 11.3% |
| Global ECS gross profit, as reported | $268,706 | $257,203 | $552,418 | $476,250 |
| Global ECS gross profit as a percentage of sales, as reported | 10.2% | 11.2% | 10.1% | 11.0% |
| Quarter Ended | Six Months Ended |
|---|
| July 4, | June 28, | July 4, | June 28, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Global Components operating income, as reported | $396,275 | $186,808 | $759,794 | $358,193 |
| Intangible assets amortization expense | 3,824 | 3,945 | 7,661 | 8,383 |
| Impact of wind down to inventory | (2,970) | (2,172) | (5,218) | (4,639) |
| Other | - | 172 | - | 172 |
| Global Components non-GAAP operating income | $397,129 | $188,753 | $762,237 | $362,109 |
| Global Components operating income as a percentage of sales, as reported | 5.4% | 3.5% | 5.4% | 3.6% |
| Global Components non-GAAP operating income as a percentage of sales | 5.4% | 3.6% | 5.4% | 3.6% |
| Global ECS operating income, as reported | $85,375 | $96,969 | $189,113 | $174,283 |
| Intangible assets amortization expense | 929 | 925 | 1,857 | 1,847 |
| Global ECS non-GAAP operating income | $86,304 | $97,894 | $190,970 | $176,130 |
| Global ECS operating income as a percentage of sales, as reported | 3.3% | 4.2% | 3.5% | 4.0% |
| Global ECS non-GAAP operating income as a percentage of sales | 3.3% | 4.3% | 3.5% | 4.1% |
NON-GAAP SEGMENT RECONCILIATIONS
Contacts
ARROW ELECTRONICS, INC.9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112303-824-4000
ARROW ELECTRONICS, INC.9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112303-824-4000
Investors: Media:
Michael Nelson, · Vice President, Investor Relations · 720-654-9893 · John Hourigan, · Vice President, Public Affairs and Corporate Marketing · 303-824-4586