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.”
Arrow Consolidated | ||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||
(in millions except per share data) | October 3,
| September 27,
| Change | October 3,
| September 27,
| Change | ||||||||||||
Consolidated sales | $ | 10,718 | $ | 7,713 | 39 | % | $ | 30,184 | $ | 22,107 | 37 | % | ||||||
Net income attributable to shareholders | 318 | 109 | 192 | % | 826 | 377 | 119 | % | ||||||||||
Net income per diluted share | 6.17 | 2.09 | 196 | % | 15.97 | 7.19 | 122 | % | ||||||||||
Non-GAAP net income attributable to shareholders (1) | 321 | 126 | 155 | % | 874 | 348 | 151 | % | ||||||||||
Non-GAAP net income per diluted share (1) | 6.22 | 2.41 | 158 | % | 16.89 | 6.64 | 154 | % | ||||||||||
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.
Global Components | ||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||||
(in millions) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||
Global Components sales | $ | 7,943 | $ | 5,556 | 43 | % | $ | 21,949 | $ | 15,619 | 41 | % | ||||||
Global Components operating income | 413 | 197 | 109 | % | 1,173 | 556 | 111 | % | ||||||||||
Global Components non-GAAP operating income (1) | 413 | 199 | 107 | % | 1,175 | 561 | 109 | % | ||||||||||
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.
Global Enterprise Computing Solutions ("ECS") | ||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||||
(in millions) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||
Global ECS sales | $ | 2,775 | $ | 2,156 | 29 | % | $ | 8,235 | $ | 6,487 | 27 | % | ||||||
Global ECS operating income | 98 | 64 | 54 | % | 287 | 238 | 21 | % | ||||||||||
Global ECS non-GAAP operating income (1) | 99 | 65 | 53 | % | 290 | 241 | 20 | % | ||||||||||
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
Fourth-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation | ||||||||||||||||||
NON-GAAP SALES RECONCILIATION | ||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||
December 31, | December 31, | December 31, | October 3, | |||||||||||||||
(in billions) | 2026 | 2025 | % Change | 2026 | 2026 | % Change | ||||||||||||
Global Components sales, GAAP | $ | 8.15 - 8.55 | $ | 5.88 | 39% - 45% | $ | 8.15 - 8.55 | $ | 7.94 | 3% - 8% | ||||||||
Impact of changes in foreign currencies | — | (0.02 | ) | — | (0.04 | ) | ||||||||||||
Global Components sales, constant currency | $ | 8.15 - 8.55 | $ | 5.86 | 39% - 46% | $ | 8.15 - 8.55 | $ | 7.90 | 3% - 8% | ||||||||
Global ECS sales, GAAP | $ | 3.40 - 3.60 | $ | 2.86 | 19% - 26% | $ | 3.40 - 3.60 | $ | 2.78 | 23% - 30% | ||||||||
Impact of changes in foreign currencies | — | (0.06 | ) | — | (0.04 | ) | ||||||||||||
Global ECS sales, constant currency | $ | 3.40 - 3.60 | $ | 2.80 | 21% - 29% | $ | 3.40 - 3.60 | $ | 2.74 | 24% - 31% | ||||||||
NON-GAAP EARNINGS RECONCILIATION | ||||||||
Reported
| Intangible amortization
| Restructuring &
| Non-GAAP measure | |||||
Net income per diluted share | $6.25 to $6.45 | $0.07 | $0.68 | $7.00 to $7.20 | ||||
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.
ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||
Sales | $ | 10,717,739 | $ | 7,712,541 | $ | 30,183,524 | $ | 22,106,505 | ||||||||
Cost of sales | 9,558,407 | 6,877,227 | 26,808,523 | 19,648,542 | ||||||||||||
Gross profit | 1,159,332 | 835,314 | 3,375,001 | 2,457,963 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general, and administrative | 688,168 | 587,866 | 2,032,447 | 1,751,172 | ||||||||||||
Depreciation and amortization | 35,873 | 32,793 | 107,525 | 103,765 | ||||||||||||
Restructuring, integration, and other | 5,034 | 35,648 | 65,837 | 74,880 | ||||||||||||
729,075 | 656,307 | 2,205,809 | 1,929,817 | |||||||||||||
Operating income | 430,257 | 179,007 | 1,169,192 | 528,146 | ||||||||||||
Equity in earnings of affiliated companies | 1,693 | 463 | 4,654 | 1,124 | ||||||||||||
Gain on investments, net | 2,893 | 4,859 | 9,145 | 108,975 | ||||||||||||
Post-retirement expense | (999 | ) | (664 | ) | (2,960 | ) | (1,950 | ) | ||||||||
Interest and other financing expense, net | (40,138 | ) | (54,875 | ) | (125,919 | ) | (171,340 | ) | ||||||||
Income before income taxes | 393,706 | 128,790 | 1,054,112 | 464,955 | ||||||||||||
Provision for income taxes | 75,175 | 19,528 | 226,716 | 88,807 | ||||||||||||
Consolidated net income | 318,531 | 109,262 | 827,396 | 376,148 | ||||||||||||
Noncontrolling interests | 156 | 69 | 1,204 | (514 | ) | |||||||||||
Net income attributable to shareholders | $ | 318,375 | $ | 109,193 | $ | 826,192 | $ | 376,662 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 6.25 | $ | 2.11 | $ | 16.14 | $ | 7.25 | ||||||||
Diluted | $ | 6.17 | $ | 2.09 | $ | 15.97 | $ | 7.19 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 50,953 | 51,695 | 51,195 | 51,935 | ||||||||||||
Diluted | 51,615 | 52,141 | 51,721 | 52,381 | ||||||||||||
ARROW ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS (In thousands except par value) (Unaudited) | ||||||||
October 3, | December 31, | |||||||
2026 | 2025 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 215,607 | $ | 306,467 | ||||
Accounts receivable, net | 33,259,191 | 19,738,666 | ||||||
Inventories | 7,305,982 | 5,081,863 | ||||||
Other current assets | 871,546 | 533,035 | ||||||
Total current assets | 41,652,326 | 25,660,031 | ||||||
Property, plant, and equipment, at cost: | ||||||||
Land | 5,691 | 5,691 | ||||||
Buildings and improvements | 208,288 | 199,433 | ||||||
Machinery and equipment | 1,721,665 | 1,715,415 | ||||||
1,935,644 | 1,920,539 | |||||||
Less: Accumulated depreciation and amortization | (1,482,743 | ) | (1,445,889 | ) | ||||
Property, plant, and equipment, net | 452,901 | 474,650 | ||||||
Investments in affiliated companies | 61,852 | 59,315 | ||||||
Intangible assets, net | 62,769 | 77,022 | ||||||
Goodwill | 2,101,839 | 2,120,071 | ||||||
Other assets | 715,608 | 687,049 | ||||||
Total assets | $ | 45,047,295 | $ | 29,078,138 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 32,862,316 | $ | 17,383,796 | ||||
Accrued expenses | 1,710,636 | 1,461,261 | ||||||
Short-term borrowings, including current portion of long-term debt | 110,497 | 341 | ||||||
Total current liabilities | 34,683,449 | 18,845,398 | ||||||
Long-term debt | 2,641,483 | 3,084,715 | ||||||
Other liabilities | 460,659 | 489,326 | ||||||
Equity: | ||||||||
Shareholders’ equity: | ||||||||
Common stock, par value $1: | ||||||||
Authorized - 160,000 shares in both 2026 and 2025 | ||||||||
Issued - 56,135 and 55,838 shares in 2026 and 2025, respectively | 56,135 | 55,838 | ||||||
Capital in excess of par value | 624,987 | 586,993 | ||||||
Treasury stock (5,577 and 4,768 shares in 2026 and 2025, respectively), at cost | (651,824 | ) | (483,571 | ) | ||||
Retained earnings | 7,378,284 | 6,552,092 | ||||||
Accumulated other comprehensive loss | (219,014 | ) | (126,640 | ) | ||||
Total shareholders’ equity | 7,188,568 | 6,584,712 | ||||||
Noncontrolling interests | 73,136 | 73,987 | ||||||
Total equity | 7,261,704 | 6,658,699 | ||||||
Total liabilities and equity | $ | 45,047,295 | $ | 29,078,138 | ||||
ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
Quarter Ended | ||||||||
October 3,
| September 27,
| |||||||
Cash flows from operating activities: | ||||||||
Consolidated net income: | $ | 318,531 | $ | 109,262 | ||||
Adjustments to reconcile consolidated net income to net cash used for operations: | ||||||||
Depreciation and amortization | 35,873 | 32,793 | ||||||
Amortization of stock-based compensation | 11,563 | (9,752 | ) | |||||
Equity in earnings of affiliated companies | (1,693 | ) | (463 | ) | ||||
Deferred income taxes | (26,920 | ) | (66 | ) | ||||
Gain on investments, net | (2,781 | ) | (5,540 | ) | ||||
Other | (622 | ) | 225 | |||||
Change in assets and liabilities: | ||||||||
Accounts receivable, net | (5,294,432 | ) | (395,610 | ) | ||||
Inventories | (1,375,531 | ) | 18,776 | |||||
Accounts payable | 5,788,135 | (78,464 | ) | |||||
Accrued expenses | 228,429 | (12,657 | ) | |||||
Other assets and liabilities | (121,961 | ) | 59,812 | |||||
Net cash used for operating activities | (441,409 | ) | (281,684 | ) | ||||
Cash flows from investing activities: | ||||||||
Acquisition of property, plant, and equipment | (26,877 | ) | (30,276 | ) | ||||
Net cash used for investing activities | (26,877 | ) | (30,276 | ) | ||||
Cash flows from financing activities: | ||||||||
Change in short-term and other borrowings | (7,076 | ) | (444,953 | ) | ||||
Proceeds from long-term bank borrowings, net | 586,630 | 751,880 | ||||||
Proceeds from exercise of stock options | 82 | 226 | ||||||
Repurchases of common stock | (99,306 | ) | (630 | ) | ||||
Net cash provided by financing activities | 480,330 | 306,523 | ||||||
Effect of exchange rate changes on cash | (41,068 | ) | (2,921 | ) | ||||
Net decrease in cash and cash equivalents | (29,024 | ) | (8,358 | ) | ||||
Cash and cash equivalents at beginning of period | 244,631 | 221,970 | ||||||
Cash and cash equivalents at end of period | $ | 215,607 | $ | 213,612 | ||||
ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
Nine Months Ended | ||||||||
October 3,
| September 27,
| |||||||
Cash flows from operating activities: | ||||||||
Consolidated net income: | $ | 827,396 | $ | 376,148 | ||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | ||||||||
Depreciation and amortization | 107,525 | 103,765 | ||||||
Amortization of stock-based compensation | 33,978 | 20,448 | ||||||
Equity in earnings of affiliated companies | (4,654 | ) | (1,124 | ) | ||||
Deferred income taxes | (14,517 | ) | 5,185 | |||||
Loss on disposition of businesses, net | 22,830 | — | ||||||
Gain on investments, net | (8,827 | ) | (109,435 | ) | ||||
Other | (795 | ) | (77 | ) | ||||
Change in assets and liabilities: | ||||||||
Accounts receivable, net | (13,633,334 | ) | (2,292,091 | ) | ||||
Inventories | (2,251,808 | ) | 65,225 | |||||
Accounts payable | 15,543,508 | 1,871,455 | ||||||
Accrued expenses | 341,010 | (94,367 | ) | |||||
Other assets and liabilities | (385,620 | ) | (81,033 | ) | ||||
Net cash provided by (used for) operating activities | 576,692 | (135,901 | ) | |||||
Cash flows from investing activities: | ||||||||
Acquisition of property, plant, and equipment | (80,123 | ) | (73,873 | ) | ||||
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 | (80,123 | ) | 50,985 | |||||
Cash flows from financing activities: | ||||||||
Change in short-term and other borrowings | 186 | 9,852 | ||||||
Repayments of long-term bank borrowings, net | (336,540 | ) | 338,223 | |||||
Redemption of notes | — | (350,000 | ) | |||||
Proceeds from exercise of stock options | 10,513 | 3,427 | ||||||
Repurchases of common stock | (174,453 | ) | (110,779 | ) | ||||
Other | (153 | ) | (148 | ) | ||||
Net cash used for financing activities | (500,447 | ) | (109,425 | ) | ||||
Effect of exchange rate changes on cash | (86,982 | ) | 219,146 | |||||
Net (decrease) increase in cash and cash equivalents | (90,860 | ) | 24,805 | |||||
Cash and cash equivalents at beginning of period | 306,467 | 188,807 | ||||||
Cash and cash equivalents at end of period | $ | 215,607 | $ | 213,612 | ||||
ARROW ELECTRONICS, INC. ECS Gross Billings (In thousands) (Unaudited) | ||||||||||||||||||
Global Enterprise Computing Solutions - Gross Billings(1) | ||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||
Gross billings: | ||||||||||||||||||
Americas ECS | $ | 2,907,324 | $ | 2,713,373 | 7 | % | $ | 8,560,299 | $ | 7,564,869 | 13 | % | ||||||
EMEA ECS | 3,028,245 | 2,476,599 | 22 | % | 9,664,888 | 7,404,025 | 31 | % | ||||||||||
Global ECS | $ | 5,935,569 | $ | 5,189,972 | 14 | % | $ | 18,225,187 | $ | 14,968,894 | 22 | % | ||||||
| ________________________________________ | ||
(1) | Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue. | |
ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) | ||||||||||
Quarter Ended | ||||||||||
October 3,
| September 27,
| % Change | ||||||||
Consolidated sales, as reported | $ | 10,717,739 | $ | 7,712,541 | 39.0 | % | ||||
Impact of changes in foreign currencies | — | (10,324 | ) | |||||||
Consolidated sales, constant currency | $ | 10,717,739 | $ | 7,702,217 | 39.2 | % | ||||
Global Components sales, as reported | $ | 7,942,592 | $ | 5,556,392 | 42.9 | % | ||||
Impact of changes in foreign currencies | — | 4,146 | ||||||||
Global Components sales, constant currency | $ | 7,942,592 | $ | 5,560,538 | 42.8 | % | ||||
Americas Components sales, as reported | $ | 2,703,157 | $ | 1,708,840 | 58.2 | % | ||||
Impact of changes in foreign currencies | — | 114 | ||||||||
Americas Components sales, constant currency | $ | 2,703,157 | $ | 1,708,954 | 58.2 | % | ||||
EMEA Components sales, as reported | $ | 2,036,976 | $ | 1,443,607 | 41.1 | % | ||||
Impact of changes in foreign currencies | — | (12,050 | ) | |||||||
EMEA Components sales, constant currency | $ | 2,036,976 | $ | 1,431,557 | 42.3 | % | ||||
Asia Components sales, as reported | $ | 3,202,459 | $ | 2,403,945 | 33.2 | % | ||||
Impact of changes in foreign currencies | — | 16,082 | ||||||||
Asia Components sales, constant currency | $ | 3,202,459 | $ | 2,420,027 | 32.3 | % | ||||
Global ECS sales, as reported | $ | 2,775,147 | $ | 2,156,149 | 28.7 | % | ||||
Impact of changes in foreign currencies | — | (14,470 | ) | |||||||
Global ECS sales, constant currency | $ | 2,775,147 | $ | 2,141,679 | 29.6 | % | ||||
Americas ECS sales, as reported | $ | 1,300,944 | $ | 1,021,950 | 27.3 | % | ||||
Impact of changes in foreign currencies | — | (1,104 | ) | |||||||
Americas ECS sales, constant currency | $ | 1,300,944 | $ | 1,020,846 | 27.4 | % | ||||
EMEA ECS sales, as reported | $ | 1,474,203 | $ | 1,134,199 | 30.0 | % | ||||
Impact of changes in foreign currencies | — | (13,366 | ) | |||||||
EMEA ECS sales, constant currency | $ | 1,474,203 | $ | 1,120,833 | 31.5 | % | ||||
ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) | |||||||||
Nine Months Ended | |||||||||
October 3,
| September 27,
| % Change | |||||||
Consolidated sales, as reported | $ | 30,183,524 | $ | 22,106,505 | 36.5 | % | |||
Impact of changes in foreign currencies | — | 356,672 | |||||||
Consolidated sales, constant currency | $ | 30,183,524 | $ | 22,463,177 | 34.4 | % | |||
Global Components sales, as reported | $ | 21,948,552 | $ | 15,619,012 | 40.5 | % | |||
Impact of changes in foreign currencies | — | 217,692 | |||||||
Global Components sales, constant currency | $ | 21,948,552 | $ | 15,836,704 | 38.6 | % | |||
Americas Components sales, as reported | $ | 7,469,825 | $ | 4,984,932 | 49.8 | % | |||
Impact of changes in foreign currencies | — | 905 | |||||||
Americas Components sales, constant currency | $ | 7,469,825 | $ | 4,985,837 | 49.8 | % | |||
EMEA Components sales, as reported | $ | 5,740,939 | $ | 4,210,552 | 36.3 | % | |||
Impact of changes in foreign currencies | — | 176,167 | |||||||
EMEA Components sales, constant currency | $ | 5,740,939 | $ | 4,386,719 | 30.9 | % | |||
Asia Components sales, as reported | $ | 8,737,788 | $ | 6,423,528 | 36.0 | % | |||
Impact of changes in foreign currencies | — | 40,620 | |||||||
Asia Components sales, constant currency | $ | 8,737,788 | $ | 6,464,148 | 35.2 | % | |||
Global ECS sales, as reported | $ | 8,234,972 | $ | 6,487,493 | 26.9 | % | |||
Impact of changes in foreign currencies | — | 138,980 | |||||||
Global ECS sales, constant currency | $ | 8,234,972 | $ | 6,626,473 | 24.3 | % | |||
Americas ECS sales, as reported | $ | 3,621,507 | $ | 2,984,638 | 21.3 | % | |||
Impact of changes in foreign currencies | — | 3,445 | |||||||
Americas ECS sales, constant currency | $ | 3,621,507 | $ | 2,988,083 | 21.2 | % | |||
EMEA ECS sales, as reported | $ | 4,613,465 | $ | 3,502,855 | 31.7 | % | |||
Impact of changes in foreign currencies | — | 135,535 | |||||||
EMEA ECS sales, constant currency | $ | 4,613,465 | $ | 3,638,390 | 26.8 | % | |||
ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) | |||||||||||||||||||||||||
Three months ended October 3, 2026 | |||||||||||||||||||||||||
Reported | Intangible | Restructuring, | Impact of | Non | |||||||||||||||||||||
GAAP | amortization | Integration | Wind | recurring | Non-GAAP | ||||||||||||||||||||
measure | expense | and other | Down(1) | tax items | Other(2) | measure | |||||||||||||||||||
Operating income | $ | 430,257 | $ | 4,745 | $ | 5,034 | $ | (3,939 | ) | $ | — | $ | — | $ | 436,097 | ||||||||||
Income before income taxes | 393,706 | 4,745 | 5,034 | (3,939 | ) | — | (2,893 | ) | 396,653 | ||||||||||||||||
Provision for income taxes | 75,175 | 1,160 | 1,083 | (1,246 | ) | — | (695 | ) | 75,477 | ||||||||||||||||
Consolidated net income | 318,531 | 3,585 | 3,951 | (2,693 | ) | — | (2,198 | ) | 321,176 | ||||||||||||||||
Net income attributable to shareholders | $ | 318,375 | $ | 3,585 | $ | 3,951 | $ | (2,693 | ) | $ | — | $ | (2,198 | ) | $ | 321,020 | |||||||||
Net income per diluted share (5) | $ | 6.17 | $ | 0.07 | $ | 0.08 | $ | (0.05 | ) | $ | — | $ | (0.04 | ) | $ | 6.22 | |||||||||
Effective tax rate (6) | 19.1 | % | 19.0 | % | |||||||||||||||||||||
Three months ended September 27, 2025 | ||||||||||||||||||||||||||
Reported | Intangible | Restructuring, | Impact of | Non | ||||||||||||||||||||||
GAAP | amortization | Integration | Wind | recurring | Non-GAAP | |||||||||||||||||||||
measure | expense | and other | Down(1) | tax items(3) | Other(2) | measure | ||||||||||||||||||||
Operating income | $ | 179,007 | $ | 4,766 | $ | 35,648 | $ | (1,989 | ) | $ | — | $ | — | $ | 217,432 | |||||||||||
Income before income taxes | 128,790 | 4,766 | 35,648 | (1,989 | ) | — | (4,859 | ) | 162,356 | |||||||||||||||||
Provision for income taxes | 19,528 | 1,162 | 9,302 | (629 | ) | 8,359 | (1,166 | ) | 36,556 | |||||||||||||||||
Consolidated net income | 109,262 | 3,604 | 26,346 | (1,360 | ) | (8,359 | ) | (3,693 | ) | 125,800 | ||||||||||||||||
Net income attributable to shareholders | $ | 109,193 | $ | 3,604 | $ | 26,346 | $ | (1,360 | ) | $ | (8,359 | ) | $ | (3,693 | ) | $ | 125,731 | |||||||||
Net income per diluted share (5) | $ | 2.09 | $ | 0.07 | $ | 0.51 | $ | (0.03 | ) | $ | (0.16 | ) | $ | (0.07 | ) | $ | 2.41 | |||||||||
Effective tax rate (6) | 15.2 | % | 22.5 | % | ||||||||||||||||||||||
ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) | ||||||||||||||||||||||||||
Nine months ended October 3, 2026 | ||||||||||||||||||||||||||
Reported | Intangible | Restructuring, | Impact of | Non | ||||||||||||||||||||||
GAAP | amortization | Integration | Wind | recurring | Non-GAAP | |||||||||||||||||||||
measure | expense | and other | Down(1) | tax items | Other(2) | measure | ||||||||||||||||||||
Operating income | $ | 1,169,192 | $ | 14,263 | $ | 65,837 | $ | (9,157 | ) | $ | — | $ | — | $ | 1,240,135 | |||||||||||
Income before income taxes | 1,054,112 | 14,263 | 65,837 | (9,157 | ) | — | (9,145 | ) | 1,115,910 | |||||||||||||||||
Provision for income taxes | 226,716 | 3,486 | 17,117 | (2,897 | ) | (1,230 | ) | (2,196 | ) | 240,996 | ||||||||||||||||
Consolidated net income | 827,396 | 10,777 | 48,720 | (6,260 | ) | 1,230 | (6,949 | ) | 874,914 | |||||||||||||||||
Noncontrolling interests | 1,204 | — | — | — | — | — | 1,204 | |||||||||||||||||||
Net income attributable to shareholders | $ | 826,192 | $ | 10,777 | $ | 48,720 | $ | (6,260 | ) | $ | 1,230 | $ | (6,949 | ) | $ | 873,710 | ||||||||||
Net income per diluted share (5) | $ | 15.97 | $ | 0.21 | $ | 0.94 | $ | (0.12 | ) | $ | 0.02 | $ | (0.13 | ) | $ | 16.89 | ||||||||||
Effective tax rate (6) | 21.5 | % | 21.6 | % | ||||||||||||||||||||||
Nine months ended September 27, 2025 | ||||||||||||||||||||||||||
Reported | Intangible | Restructuring, | Impact of | Non | ||||||||||||||||||||||
GAAP | amortization | Integration | Wind | recurring | Non-GAAP | |||||||||||||||||||||
measure | expense | and other | Down(1) | tax items(3) | Other(4) | measure | ||||||||||||||||||||
Operating income | $ | 528,146 | $ | 14,996 | $ | 74,880 | $ | (6,628 | ) | $ | — | $ | 172 | $ | 611,566 | |||||||||||
Income before income taxes | 464,955 | 14,996 | 74,880 | (6,628 | ) | — | (108,803 | ) | 439,400 | |||||||||||||||||
Provision for income taxes | 88,807 | 3,686 | 19,400 | (2,099 | ) | 8,143 | (26,102 | ) | 91,835 | |||||||||||||||||
Consolidated net income | 376,148 | 11,310 | 55,480 | (4,529 | ) | (8,143 | ) | (82,701 | ) | 347,565 | ||||||||||||||||
Noncontrolling interests | (514 | ) | 156 | — | — | — | — | (358 | ) | |||||||||||||||||
Net income attributable to shareholders | $ | 376,662 | $ | 11,154 | $ | 55,480 | $ | (4,529 | ) | $ | (8,143 | ) | $ | (82,701 | ) | $ | 347,923 | |||||||||
Net income per diluted share (5) | $ | 7.19 | $ | 0.21 | $ | 1.06 | $ | (0.09 | ) | $ | (0.16 | ) | $ | (1.58 | ) | $ | 6.64 | |||||||||
Effective tax rate (6) | 19.1 | % | 20.9 | % | ||||||||||||||||||||||
| ________________________________________ |
(1) Includes recoveries of inventory related to the wind down of a business.
(2) Other includes gain on investments, net.
(3) Includes impacts from tax settlements related to U.S. federal tax law changes enacted as part of the 2017 Tax Cuts and Jobs Act.
(4) Other includes gain on investments, net and employee severance and benefits costs not related to restructuring initiative presented in cost of sales.
(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.
ARROW ELECTRONICS, INC. SEGMENT INFORMATION (In thousands) (Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Sales: | ||||||||||||||||
Global Components | $ | 7,942,592 | $ | 5,556,392 | $ | 21,948,552 | $ | 15,619,012 | ||||||||
Global ECS | 2,775,147 | 2,156,149 | 8,234,972 | 6,487,493 | ||||||||||||
Consolidated | $ | 10,717,739 | $ | 7,712,541 | $ | 30,183,524 | $ | 22,106,505 | ||||||||
Operating income: | ||||||||||||||||
Global Components (a) | $ | 413,032 | $ | 197,355 | $ | 1,172,826 | $ | 555,548 | ||||||||
Global ECS (b) | 98,218 | 63,744 | 287,331 | 238,027 | ||||||||||||
Segment operating income | $ | 511,250 | $ | 261,099 | $ | 1,460,157 | $ | 793,575 | ||||||||
Corporate operating expenses (c) | (80,993 | ) | (82,092 | ) | (290,965 | ) | (265,429 | ) | ||||||||
Consolidated | $ | 430,257 | $ | 179,007 | $ | 1,169,192 | $ | 528,146 | ||||||||
________________________________________ | ||
(a) | Global Components operating income includes $3.9 million and $9.2 million in inventory recoveries related to the wind down of a business for the third quarter and first nine months of 2026, respectively, and $2.0 million and $6.6 million in inventory recoveries related to the wind down of a business for the third quarter and first nine months of 2025, respectively. | |
(b) | Global ECS operating income includes costs related to the underperformance of certain non-cancellable multi-year purchase obligations, where the quarterly fee was in excess of the margin realized, in the amount of $3.8 million and $52.1 million for the third quarter and first nine months of 2026, respectively, and $12.6 million and $18.3 million, for the third quarter and first nine months of 2025, respectively. | |
(c) | Corporate unallocated operating expenses includes restructuring, integration, and other charges of $5.0 million and $65.8 million for the third quarter and first nine months of 2026, respectively, and $35.6 million and $74.9 million for the third quarter and first nine months of 2025, respectively. | |
ARROW ELECTRONICS, INC. NON-GAAP SEGMENT RECONCILIATION (In thousands) (Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Global Components gross profit, as reported | $ | 878,761 | $ | 609,101 | $ | 2,542,012 | $ | 1,755,500 | ||||||||
Impact of wind down to inventory | (3,939 | ) | (1,989 | ) | (9,157 | ) | (6,628 | ) | ||||||||
Other | — | — | — | 172 | ||||||||||||
Global Components non-GAAP gross profit | $ | 874,822 | $ | 607,112 | $ | 2,532,855 | $ | 1,749,044 | ||||||||
Global Components gross profit as a percentage of sales, as reported | 11.1 | % | 11.0 | % | 11.6 | % | 11.2 | % | ||||||||
Global Components non-GAAP gross profit as a percentage of sales | 11.0 | % | 10.9 | % | 11.5 | % | 11.2 | % | ||||||||
Global ECS gross profit, as reported | $ | 280,571 | $ | 226,213 | $ | 832,989 | $ | 702,463 | ||||||||
Global ECS gross profit as a percentage of sales, as reported | 10.1 | % | 10.5 | % | 10.1 | % | 10.8 | % | ||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Global Components operating income, as reported | $ | 413,032 | $ | 197,355 | $ | 1,172,826 | $ | 555,548 | ||||||||
Intangible assets amortization expense | 3,817 | 3,838 | 11,478 | 12,221 | ||||||||||||
Impact of wind down to inventory | (3,939 | ) | (1,989 | ) | (9,157 | ) | (6,628 | ) | ||||||||
Other | — | — | — | 172 | ||||||||||||
Global Components non-GAAP operating income | $ | 412,910 | $ | 199,204 | $ | 1,175,147 | $ | 561,313 | ||||||||
Global Components operating income as a percentage of sales, as reported | 5.2 | % | 3.6 | % | 5.3 | % | 3.6 | % | ||||||||
Global Components non-GAAP operating income as a percentage of sales | 5.2 | % | 3.6 | % | 5.4 | % | 3.6 | % | ||||||||
Global ECS operating income, as reported | $ | 98,218 | $ | 63,744 | $ | 287,331 | $ | 238,027 | ||||||||
Intangible assets amortization expense | 928 | 928 | 2,785 | 2,775 | ||||||||||||
Global ECS non-GAAP operating income | $ | 99,146 | $ | 64,672 | $ | 290,116 | $ | 240,802 | ||||||||
Global ECS operating income as a percentage of sales, as reported | 3.5 | % | 3.0 | % | 3.5 | % | 3.7 | % | ||||||||
Global ECS non-GAAP operating income as a percentage of sales | 3.6 | % | 3.0 | % | 3.5 | % | 3.7 | % | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20261105629501/en/