Slide 1: Arrow Electronics Earnings Presentation First Quarter 2026
Arrow Electronics Earnings Presentation First Quarter 2026 May 7, 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: Q1 2026 Highlights
Q1 2026 Highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 9.5 Billion 4.2 Percent $ 5.22 Up 39% Y/Y Up 160 bps Y/Y Up 190% Y/Y • Revenue and EPS exceeded high end of guidance range • Leading indicators continue to improve • Strong operational momentum • Additional Q1 2026
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 through recovery • Deliver profitable growth • Increase mix of higher margin value-added services • Improving profitability, diversified business model and focused capital allocation 5
Slide 6: Q1 2026 Financial Metrics
Q1 2026 Financial Metrics $ in millions except for EPS Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Expenses1 10,000 $8,746 $9,474 13.0% 750 $669 $687 100% 12.5% 90% 8,000 $6,814 650 $593 12.0% 80% 6,000 550 11.5% 76.8% 70% 4,000 450 11.5% 11.5% 11.0% 66.5% 60% 11.3% 63.2% 2,000 350 50% 10.5% -
Slide 7: Q1 2026 Enterprise Computing Solutions
Q1 2026 Enterprise Computing Solutions $ in millions Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 3,100 $2,833 25.0% 120 12.0% $105 2,600 20.0% 100 10.0% $2,036 $78 2,100 $1,733 80 $73 8.0% 15.0% 1,600 60 6.0% 12.2% 10.0% 1,100 10.8% 40 4.0% 10.0% 5.0% 4.2% 3.8% 3.7% 600 20 2.0% 100 0.0
Slide 8: Q1 2026 Global Components
Q1 2026 Global Components $ in millions Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 7,250 $6,640 12.4% 400 $365 $5,882 12.2% 350 6.5% 6,250 12.0% 5,250 $4,778 12.1% 11.8% 300 5.5% 11.6% 250 $219 5.5% 4,250 11.4% 4.5% 11.6% 200 $173 3,250 11.2% 11.0% 150 3.5% 2,250 10.8% 100 3.6% 3.7% 1
Slide 9: Q1 2026 Balance Sheet and Cash Highlights
Q1 2026 Balance Sheet and Cash Highlights Net Working Capital ($B) • Non-GAAP Return on Working Capital 26.0 19.7 (ROWC)1 of 23.1% in the first quarter, rose 1180 12.4 Accounts Receivable basis points year on year. The increase in 4.8 6.4 5.1 7.4 5.7 6.9 ROWC related primarily to higher operating In
Slide 10: Q2 2026 Guidance
Q2 2026 Guidance Consolidated Sales $9.15 billion to $9.75 billion Global Components $6.80 billion to $7.20 billion Global ECS $2.35 billion to $2.55 billion Diluted Earnings Per Share $3.91 to $4.11 Non-GAAP Diluted Earnings Per Share 1 $4.32 to $4.52 Interest and other expense, net Approximately $
Slide 11: Looking Forward
Looking Forward • Strong execution driving operational momentum • Encouraging leading indicators • Expanding higher margin value-added services • Drive profitable growth • Positioned to deliver long-term shareholder value • Improving profitability • Diversified business model • Focused capital alloc
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 first-quarter overview
Consolidated first-quarter overview ($ in millions, except per share data) Q1 2026 Q1 2025 Y/Y CHANGE Q1 2025 IN Y/Y CHANGE IN Q4 2025 Q/Q CHANGE CONSTANT CONSTANT CURRENCY CURRENCY P&L Highlights* Sales $9,474 $6,814 39.0% $7,088 33.7% $8,746 8.3% Gross Profit Margin 11.5% 11.4% 10 bps 11.4% 10 bps
Slide 15: Revenue history
Revenue history ($ in millions, may reflect rounding) YoY QoQ Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 change change Global Components Total 4,814 4,778 5,285 5,556 5,882 6,640 39% 13% Americas 1,604 1,569 1,708 1,709 1,960 2,312 47% 18% Europe, Middle East & Africa 1,262 1,340 1,427 1,444 1,460 1,765 32
Slide 16: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $188 $189 $364 $365 $104 $105 $219 $219 $97 $98 $187 $189 $197 $199 $171 $173 $77 $78 $64 $65 Q1-'25 Q2-'25 Q3-'25 Q4-'25 Q1-'26 Q1-'25 Q2-'25 Q3-'25 Q4-'25 Q1-'26 GAAP Non-GAAP GAAP Non-GAAP 16 See the reconciliatio
Slide 17: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 18: Second-quarter 2026 GAAP to non-GAAP outlook reconciliation
Second-quarter 2026 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 4-Jul-26 28-Jun-25 % Change 4-Jul-26 4-Apr-26 % Change Global components sales, GAAP $ 6.80 - 7.20 $ 5.28 29% - 36% 6.80 - 7.20 $ 6.64 2% - 8%
Slide 19: Non-GAAP first-quarter sales reconciliation
Non-GAAP first-quarter sales reconciliation ($ in thousands) Quarter Ended 4-Apr-26 29-Mar-25 % Change Consolidated sales, as reported $ 9,473,548 $ 6,814,017 39.0% Impact of changes in foreign currencies - 273,514 Consolidated sales, constant currency $ 9,473,548 $ 7,087,531 33.7% 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 April 4, 2026 Intangible Amortization Restructuring & Integration (1) Includes write-downs (recoveries) of Reported GAAP measure Expense charges Impact of Wind Down (1) Other (2) Non-GAAP measure inv
Slide 21: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) 3/29/2025 6/28/2025 9/27/2025 12/31/2025 4/4/2026 Consolidated Gross Profit $ 773,992 $ 848,657 $ 835,314 $ 1,008,756 $ 1,090,460 Impact of wind down to inventory (2,467) (2,172) (1,989) (3,638) (2,248) Other - 172 - - - Consolidated
Slide 22: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended April 4, 2026 March 29, 2025 Numerator: Consolidated operating income, as reported $ 361,602 $ 158,553 x4 x4 Annualized consolidated operating income $ 1,446,408 $ 634,212 Non-GAAP consolidated operating income $ 400,783 $ 178,7
Slide 23: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended April 4, 2026 March 29, 2025 (1) Operating income, as reported, and non- Numerator: GAAP operating income is adjusted for noncontrolling interest and equity in earnings Consolidated operating income, as reported $ 361,602 $ 158
Slide 24: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) 3/30/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 4/4/2026 Global components operating income, as reported $ 225,562 $ 171,385 $ 186,808 $ 197,355 $ 219,158 $ 363,520 Global components operating income, as reported $ 225,562 $ 171,385 $ 186,808 $ 197
Slide 25: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) 3/30/2024 12/31/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 4/4/2026 Global components gross profit, as reported $ 645,714 $ 497,324 $ 554,945 $ 591,454 $ 609,101 $ 647,154 $ 806,748 Impact of wind down to inventory 10,459 50,344 (2,467)