Slide 1: Arrow Electronics Earnings Presentation Second Quarter 2026
Arrow Electronics Earnings Presentation Second Quarter 2026 August 6, 2026 William Austen, Interim President and CEO Raj Agrawal, Senior Vice President and CFO
Slide 2: Safe Harbor
Safe Harbor This presentation 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
Slide 3: Q2 2026 Highlights
Q2 2026 Highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 10.0 Billion 4.0 Percent $ 5.45 Up 32% Y/Y Up 120 bps Y/Y Up 124% Y/Y • Revenue and EPS exceeded high end of guidance range • Leading indicators continue to improve • Strong operational momentum • Additional Q2 202
Slide 4: Why Arrow
Why Arrow As the premier distributor of technology solutions, we guide innovation forward Strong Position in Differentiated Diversified Business Focused Large and Growing Capabilities Driving Model Provides Capital Allocation Markets Profitable Growth Financial Flexibility Strategy • Superior produc
Slide 5: Overview
Overview • Disciplined execution • Expand higher margin value-added services • Deliver profitable growth • Drive positive operating leverage • Create sustainable long-term shareholder value 5
Slide 6: Q2 2026 Financial Metrics
Q2 2026 Financial Metrics $ in millions except for EPS Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Expenses1 $9,474 $9,992 $719 $687 $7,580 $631 74.6% 11.5% 63.2% 64.1% 11.2% 11.2% Q2 '25 Q1 '26 Q2 '26 Q2 '25 Q1 '26 Q2 '26 ECS Global Components Gross Margin (%) OPEX % of Gross Profit 1 Non-GAA
Slide 7: Q2 2026 Global Components
Q2 2026 Global Components $ in millions Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 $7,366 $397 $6,640 $365 $5,285 5.5% 5.4% $189 12.1% 11.6% 11.2% 3.6% Q2 '25 Q1 '26 Q2 '26 Q2 '25 Q1 '26 Q2 '26 Americas EMEA Asia Pacific Gross Margin (%) Operating Income Operating Margin (%) • Broad b
Slide 8: Q2 2026 Enterprise Computing Solutions
Q2 2026 Enterprise Computing Solutions $ in millions Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 $2,627 $104 $2,295 $98 $86 $1,861 5.6% 11.9% 11.2% 4.3% 10.2% 3.3% Q2 '24 Q2 '25 Q2 '26 Q2 '24 Q2 '25 Q2 '26 EMEA Americas Gross Margin (%) Operating Income Operating Margin (%) • Strategic
Slide 9: Q2 2026 Balance Sheet and Cash Highlights
Q2 2026 Balance Sheet and Cash Highlights Net Working Capital ($B) • Non-GAAP Return on Working Capital 26.0 28.0 (ROWC)1 of 23.6% in the second quarter, rose 15.3 1090 basis points year on year. The increase in 4.7 6.8 5.7 6.9 5.9 6.8 Accounts Receivable ROWC related primarily to higher operating I
Slide 10: Q3 2026 Guidance
Q3 2026 Guidance Consolidated Sales $9.60 billion to $10.20 billion Global Components $7.50 billion to $7.90 billion Global ECS $2.10 billion to $2.30 billion Diluted Earnings Per Share $4.72 to $4.92 Non-GAAP Diluted Earnings Per Share 1 $4.83 to $5.03 Interest and other expense, net Approximately
Slide 11: Looking Forward
Looking Forward • Build on operational momentum • Constructive leading indicators • Drive sustainable profitable growth • Focused capital allocation • Expand higher-margin value-added services • Deliver long-term shareholder value 11
Slide 12: Thank You Q&A
Thank You Q&A ANOW
Slide 13: Additional information and financial tables
Additional information and financial tables 13
Slide 14: Consolidated second-quarter overview
Consolidated second-quarter overview ($ in millions, except per share data) Q2 2026 Q2 2025 Y/Y CHANGE Q2 2025 IN Y/Y CHANGE IN Q1 2026 Q/Q CHANGE CONSTANT CONSTANT CURRENCY CURRENCY P&L Highlights* Sales $9,992 $7,580 31.8% $7,673 30.2% $9,474 5.5% Gross Profit Margin 11.3% 11.2% 10 bps 11.2% 10 bp
Slide 15: Revenue history
Revenue history ($ in millions, may reflect rounding) YoY QoQ Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 change change Global Components Total 5,285 5,556 5,882 6,640 7,366 39% 11% Americas 1,708 1,709 1,960 2,312 2,455 44% 6% Europe, Middle East & Africa 1,427 1,444 1,460 1,765 1,939 36% 10% Asia Pacific 2,150
Slide 16: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $188 $189 $396 $397 $364 $365 $104 $105 $97 $98 $219 $219 $85 $86 $187 $189 $197 $199 $64 $65 Q2-'25 Q3-'25 Q4-'25 Q1-'26 Q2-'26 Q2-'25 Q3-'25 Q4-'25 Q1-'26 Q2-'26 GAAP Non-GAAP GAAP Non-GAAP 16 See the reconciliatio
Slide 17: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 18: Third-quarter 2026 GAAP to non-GAAP outlook reconciliation
Third-quarter 2026 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP NON-GAAPSALES RECONCILIATION SALES RECONCILIATION Quarter Quarter Ended Ended Quarter Quarter Ended Ended 4-Jul-26 3-Oct-26 28-Jun-25 27-Sep-25 % % Change Change 4-Jul-26 3-Oct-26 4-Apr-26 4-Ju
Slide 19: Non-GAAP second-quarter sales reconciliation
Non-GAAP second-quarter sales reconciliation ($ in thousands) Quarter Ended 4-Jul-26 28-Jun-25 % 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
Slide 20: Quarterly GAAP to non-GAAP reconciliation
Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended July 4, 2026 (1) Includes write-downs (recoveries) of Reported GAAP Intangible Restructuring & inventory related to the wind down of measure Amortization Expense Integration charges Impact of Wind Do
Slide 21: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) 6/28/2025 9/27/2025 12/31/2025 4/4/2026 7/4/2026 Consolidated Gross Profit $ 848,657 $ 835,314 $ 1,008,756 $ 1,090,460 $ 1,125,209 Impact of wind down to inventory (2,172) (1,989) (3,638) (2,248) (2,970) Other 172 - - - - Consolidate
Slide 22: Operating income margin reconciliation
Operating income margin reconciliation ($ in thousands) 6/28/2025 4/4/2026 7/4/2026 Operating Income $ 190,586 $ 361,602 $ 377,333 Intangible Amortization 4,871 4,765 4,753 Restructuring and Integration Charges 21,919 36,664 24,139 Inventory Adjustment $ (2,000) $ (2,248) $ (2,970) Consolidated non-
Slide 23: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended July 4, 2026 June 28, 2025 Numerator: Consolidated operating income, as reported $ 377,333 $ 190,586 x4 x4 Annualized consolidated operating income $ 1,509,332 $ 762,344 Non-GAAP consolidated operating income $ 403,255 $ 215,375
Slide 24: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended July 4, 2026 June 28, 2025 (1) Operating income, as reported, and non- Numerator: GAAP operating income is adjusted for Consolidated operating income, as reported $ 377,333 $ 190,586 noncontrolling interest and equity in earnin
Slide 25: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) 6/29/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 4/4/2026 7/4/2026 Global components operating income, as reported $ 210,201 $ 171,385 $ 186,808 $ 197,355 $ 219,158 $ 363,520 $ 396,275 Intangible assets amortization expense 6,399 4,438 3,945 3,838 3
Slide 26: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) 6/29/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 4/4/2026 7/4/2026 Global components gross profit, as reported $ 624,860 $ 554,945 $ 591,454 $ 609,101 $ 647,154 $ 806,748 $ 856,503 Impact of wind down to inventory 1,627 (2,467) (2,172) (
Slide 27: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in thousands) Trailing Twelve Months Trailing Twelve Months 6/28/2025 7/4/2026 6/28/2025 7/4/2026 Income before income taxes $ 580,964 $ 1,042,169 Income before income taxes $ 580,964 $ 1,042,169 Interest and other financing expense, net 239,804 184,420 Interest and ot