Arrow Electronics Reports First-Quarter 2026 Results
–Total Revenue of $9.5 billion, up 39%, Above High End of Guidance–
–Earnings Per Share of $4.55 and Non-GAAP Earnings Per Share of $5.22, Both Above High End of Guidance–
CENTENNIAL, Colo.–(BUSINESS WIRE)–
Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its first quarter of 2026.
“The first quarter marked a strong start to 2026 as total revenue, profit margins, and EPS grew significantly year over year, exceeding our guidance ranges,” said Bill Austen, Arrow’s interim president and chief executive officer. “We saw continued operational momentum across both Global Components and ECS, supported by an accelerated recovery that spanned geographies and industry verticals, improved book-to-bill ratios, and a healthy backlog that continues to build.”
“Looking ahead, we are confident the progress we are achieving positions us well to continue executing our strategy with discipline. This is supported by the continued expansion of our higher margin, value‑added offerings, a scalable cost structure, and a focused capital allocation framework. Together, these initiatives position us to drive profitable growth and deliver long‑term value for our customers and shareholders.”
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Arrow Consolidated |
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Quarter Ended |
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April 4, |
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March 29, |
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(in millions except per share data) |
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2026 |
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2025 |
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Change |
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Consolidated sales |
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$ |
9,474 |
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$ |
6,814 |
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39 |
% |
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Net income attributable to shareholders |
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235 |
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80 |
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195 |
% |
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Net income per diluted share |
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4.55 |
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1.51 |
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201 |
% |
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Non-GAAP net income attributable to shareholders (1) |
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270 |
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95 |
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185 |
% |
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Non-GAAP net income per diluted share (1) |
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5.22 |
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1.80 |
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190 |
% |
In the first quarter of 2026, sales increased 39 percent year over year, and increased 34 percent year over year on a constant currency basis. Changes in foreign currencies had a positive impact on growth of $274 million on sales and $0.07 on earnings per share on a diluted basis compared to the first quarter of 2025.
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Global Components |
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Quarter Ended |
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April 4, |
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March 29, |
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(in millions) |
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2026 |
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2025 |
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Change |
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Global components sales |
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$ |
6,640 |
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$ |
4,778 |
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39 |
% |
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Global components operating income |
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364 |
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171 |
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112 |
% |
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Global components non-GAAP operating income (1) |
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365 |
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173 |
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111 |
% |
In the first quarter of 2026, global components sales increased 39 percent year over year and increased 35 percent year over year on a constant currency basis. Americas components first-quarter sales increased 47 percent year over year. EMEA components first-quarter sales increased 32 percent year over year and increased 19 percent year over year on a constant currency basis. Asia-Pacific components first-quarter sales increased 37 percent year over year and increased 36 percent year over year on a constant currency basis.
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Global Enterprise Computing Solutions (“ECS”) |
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Quarter Ended |
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April 4, |
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March 29, |
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(in millions) |
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2026 |
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2025 |
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Change |
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Global ECS sales |
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$ |
2,833 |
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$ |
2,036 |
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39 |
% |
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Global ECS operating income |
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104 |
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77 |
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34 |
% |
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Global ECS non-GAAP operating income (1) |
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105 |
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78 |
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34 |
% |
In the first quarter of 2026, Global ECS sales increased 39 percent year over year, and increased 32 percent year over year on a constant currency basis. Global ECS gross billings increased 39 percent year over year. Global ECS first-quarter operating income and non-GAAP operating income increased 34 percent year over year. EMEA ECS first-quarter sales increased 46 percent year over year and increased 33 percent year over year on a constant currency basis. Americas ECS first-quarter sales increased 30 percent year over year.
Other Financial Information
In the first quarter of 2026, Arrow generated $700 million of cash flow from operations partly due to the timing of cash flows within Arrow’s supply chain services offering. Arrow also repurchased $25 million of shares in the first quarter.
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
Second-Quarter 2026 Outlook
- Consolidated sales of $9.15 billion to $9.75 billion, with global components sales of $6.80 billion to $7.20 billion, and global enterprise computing solutions sales of $2.35 billion to $2.55 billion
- Net income per share on a diluted basis of $3.91 to $4.11, and non-GAAP net income per share on a diluted basis of $4.32 to $4.52
- Average tax rate in the range of 23 percent to 25 percent
- Interest expense of approximately $60 million
- Changes in foreign currencies to increase sales by approximately $117 million, and earnings per share on a diluted basis by $0.11 compared to the second quarter of 2025
- Changes in foreign currencies to increase quarter-over-quarter growth in sales by $21 million, and earnings per share on a diluted basis to increase by $0.03 compared to the first quarter of 2026
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Second-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation |
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NON-GAAP SALES RECONCILIATION |
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Quarter Ended |
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Quarter Ended |
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July 4, |
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June 28, |
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July 4, |
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April 4, |
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(in billions) |
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2026 |
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2025 |
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% Change |
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2026 |
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2026 |
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% Change |
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Global components sales, GAAP |
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$ |
6.80 – 7.20 |
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$ |
5.28 |
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29% – 36% |
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$ |
6.80 – 7.20 |
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$ |
6.64 |
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2% – 8% |
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Impact of changes in foreign currencies |
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— |
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0.07 |
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— |
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0.01 |
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Global components sales, constant currency |
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$ |
6.80 – 7.20 |
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$ |
5.35 |
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27% – 34% |
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$ |
6.80 – 7.20 |
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$ |
6.65 |
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2% – 8% |
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Global ECS sales, GAAP |
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$ |
2.35 – 2.55 |
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$ |
2.30 |
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2% – 11% |
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$ |
2.35 – 2.55 |
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$ |
2.83 |
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(17)% – (10)% |
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Impact of changes in foreign currencies |
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— |
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0.05 |
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— |
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0.01 |
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Global ECS sales, constant currency |
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$ |
2.35 – 2.55 |
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$ |
2.35 |
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0% – 9% |
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$ |
2.35 – 2.55 |
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$ |
2.84 |
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(17)% – (10)% |
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NON-GAAP EARNINGS RECONCILIATION |
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Reported |
Intangible amortization |
Restructuring & |
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GAAP measure |
expense |
integration charges |
Non-GAAP measure |
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Net income per diluted share |
$3.91 to $4.11 |
$0.07 |
$0.34 |
$4.32 to $4.52 |
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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 first-quarter 2026 financial results on May 7, 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/218062703. 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 to the reader 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
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, and include, but are not limited to, statements regarding: Arrow’s future financial performance, including its outlook on financial results for the second quarter of fiscal 2026 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring and integration charges per diluted share, the timing of the completion of the Operating Expense Efficiency Plan (the “Plan”) and Arrow’s estimated costs and expected operating expense reductions from the Plan, industry trends and expectations regarding market demand and conditions, and shareholder returns. These and other 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; political instability and changes; impacts of military conflict and sanctions; 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; management transitions, including the company’s search for a permanent CEO; the incurrence of unanticipated charges or failure to realize contemplated cost savings in connection with the Plan; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; changes in relationships with key suppliers; 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, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interest, 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; and inventory write downs (recoveries) related to the wind down of a businesses within global components (“impact of wind down”). 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.
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ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) |
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Quarter Ended |
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April 4, 2026 |
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March 29, 2025 |
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Sales |
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$ |
9,473,548 |
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$ |
6,814,017 |
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Cost of sales |
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8,383,088 |
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6,040,025 |
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Gross profit |
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1,090,460 |
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773,992 |
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Operating expenses: |
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Selling, general, and administrative |
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656,141 |
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|
562,316 |
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Depreciation and amortization |
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|
36,053 |
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|
|
35,810 |
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Restructuring, integration, and other |
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|
36,664 |
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|
|
17,313 |
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|
728,858 |
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|
615,439 |
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Operating income |
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|
361,602 |
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|
158,553 |
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Equity in earnings of affiliated companies |
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|
896 |
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|
1,320 |
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(Loss) gain on investments, net |
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|
(5,792 |
) |
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|
140 |
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Post-retirement expense |
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|
(962 |
) |
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|
(622 |
) |
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Interest and other financing expense, net |
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(48,484 |
) |
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|
(56,182 |
) |
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Income before income taxes |
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|
307,260 |
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|
103,209 |
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Provision for income taxes |
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|
71,230 |
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|
23,345 |
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Consolidated net income |
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|
236,030 |
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|
79,864 |
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Noncontrolling interests |
|
|
924 |
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|
|
144 |
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Net income attributable to shareholders |
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$ |
235,106 |
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$ |
79,720 |
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Net income per share: |
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Basic |
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$ |
4.58 |
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$ |
1.53 |
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Diluted |
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$ |
4.55 |
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$ |
1.51 |
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Weighted-average shares outstanding: |
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Basic |
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51,321 |
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52,266 |
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Diluted |
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|
51,707 |
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|
52,674 |
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ARROW ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS (In thousands except par value) (Unaudited) |
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April 4, |
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December 31, |
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2026 |
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2025 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
286,512 |
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$ |
306,467 |
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Accounts receivable, net |
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|
25,961,193 |
|
|
|
19,738,666 |
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Inventories |
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|
5,722,706 |
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|
5,081,863 |
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Other current assets |
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|
584,831 |
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|
533,035 |
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Total current assets |
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|
32,555,242 |
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|
|
25,660,031 |
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Property, plant, and equipment, at cost: |
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Land |
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|
5,691 |
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|
5,691 |
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Buildings and improvements |
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|
208,821 |
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|
|
199,433 |
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Machinery and equipment |
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|
1,722,427 |
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|
|
1,715,415 |
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|
|
|
|
1,936,939 |
|
|
|
1,920,539 |
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Less: Accumulated depreciation and amortization |
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(1,465,448 |
) |
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|
(1,445,889 |
) |
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Property, plant, and equipment, net |
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|
471,491 |
|
|
|
474,650 |
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Investments in affiliated companies |
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|
59,226 |
|
|
|
59,315 |
|
|
Intangible assets, net |
|
|
72,251 |
|
|
|
77,022 |
|
|
Goodwill |
|
|
2,109,008 |
|
|
|
2,120,071 |
|
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Other assets |
|
|
686,752 |
|
|
|
687,049 |
|
|
Total assets |
|
$ |
35,953,970 |
|
|
$ |
29,078,138 |
|
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LIABILITIES AND EQUITY |
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||||
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Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
24,739,718 |
|
|
$ |
17,383,796 |
|
|
Accrued expenses |
|
|
1,434,256 |
|
|
|
1,461,261 |
|
|
Short-term borrowings, including current portion of long-term debt |
|
|
113,371 |
|
|
|
341 |
|
|
Total current liabilities |
|
|
26,287,345 |
|
|
|
18,845,398 |
|
|
Long-term debt |
|
|
2,352,395 |
|
|
|
3,084,715 |
|
|
Other liabilities |
|
|
498,509 |
|
|
|
489,326 |
|
|
|
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|
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||||
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Equity: |
|
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|
||||
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Shareholders’ equity: |
|
|
|
|
||||
|
Common stock, par value $1: |
|
|
|
|
||||
|
Authorized – 160,000 shares in both 2026 and 2025 |
|
|
|
|
||||
|
Issued – 56,007 and 55,838 shares in 2026 and 2025, respectively |
|
|
56,007 |
|
|
|
55,838 |
|
|
Capital in excess of par value |
|
|
595,704 |
|
|
|
586,993 |
|
|
Treasury stock (4,923 and 4,768 shares in 2026 and 2025, respectively), at cost |
|
|
(511,106 |
) |
|
|
(483,571 |
) |
|
Retained earnings |
|
|
6,787,198 |
|
|
|
6,552,092 |
|
|
Accumulated other comprehensive loss |
|
|
(186,132 |
) |
|
|
(126,640 |
) |
|
Total shareholders’ equity |
|
|
6,741,671 |
|
|
|
6,584,712 |
|
|
Noncontrolling interests |
|
|
74,050 |
|
|
|
73,987 |
|
|
Total equity |
|
|
6,815,721 |
|
|
|
6,658,699 |
|
|
Total liabilities and equity |
|
$ |
35,953,970 |
|
|
$ |
29,078,138 |
|
|
ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
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|
|
|
|
|
|
||
|
|
|
Quarter Ended |
||||||
|
|
|
April 4, 2026 |
|
March 29, 2025 |
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
||
|
Consolidated net income: |
|
$ |
236,030 |
|
|
$ |
79,864 |
|
|
Adjustments to reconcile consolidated net income to net cash provided by operations: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
36,053 |
|
|
|
35,810 |
|
|
Amortization of stock-based compensation |
|
|
9,599 |
|
|
|
18,559 |
|
|
Equity in earnings of affiliated companies |
|
|
(896 |
) |
|
|
(1,320 |
) |
|
Deferred income taxes |
|
|
9,754 |
|
|
|
(5,841 |
) |
|
Loss (gain) on investments, net |
|
|
5,871 |
|
|
|
(32 |
) |
|
Other |
|
|
8,104 |
|
|
|
(678 |
) |
|
Change in assets and liabilities: |
|
|
|
|
|
|
||
|
Accounts receivable, net |
|
|
(6,280,326 |
) |
|
|
731,226 |
|
|
Inventories |
|
|
(656,543 |
) |
|
|
(62,384 |
) |
|
Accounts payable |
|
|
7,390,689 |
|
|
|
(251,057 |
) |
|
Accrued expenses |
|
|
6,910 |
|
|
|
(79,683 |
) |
|
Other assets and liabilities |
|
|
(65,493 |
) |
|
|
(112,785 |
) |
|
Net cash provided by operating activities |
|
|
699,752 |
|
|
|
351,679 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
|
Acquisition of property, plant, and equipment |
|
|
(32,108 |
) |
|
|
(24,979 |
) |
|
Net cash used for investing activities |
|
|
(32,108 |
) |
|
|
(24,979 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
|
Change in short-term and other borrowings |
|
|
2,681 |
|
|
|
180,616 |
|
|
Repayments of long-term bank borrowings, net |
|
|
(623,096 |
) |
|
|
(464,223 |
) |
|
Proceeds from exercise of stock options |
|
|
5,038 |
|
|
|
904 |
|
|
Repurchases of common stock |
|
|
(33,292 |
) |
|
|
(59,413 |
) |
|
Net cash used for financing activities |
|
|
(648,669 |
) |
|
|
(342,116 |
) |
|
Effect of exchange rate changes on cash |
|
|
(38,930 |
) |
|
|
58,491 |
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(19,955 |
) |
|
|
43,075 |
|
|
Cash and cash equivalents at beginning of period |
|
|
306,467 |
|
|
|
188,807 |
|
|
Cash and cash equivalents at end of period |
|
$ |
286,512 |
|
|
$ |
231,882 |
|
|
ARROW ELECTRONICS, INC. ECS Gross Billings (In thousands) (Unaudited) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Global Enterprise Computing Solutions – Gross Billings(1) |
|||||||||
|
|
|
Quarter Ended |
|||||||
|
|
|
April 4, |
|
March 29, |
|
|
|
||
|
|
|
2026 |
|
2025 |
|
% Change |
|||
|
Gross billings: |
|
|
|
|
|
|
|
|
|
|
Americas ECS |
|
$ |
2,959,611 |
|
$ |
2,307,737 |
|
28.2 |
% |
|
EMEA ECS |
|
|
3,473,712 |
|
|
2,331,217 |
|
49.0 |
% |
|
Global ECS |
|
$ |
6,433,323 |
|
$ |
4,638,954 |
|
38.7 |
% |
| _________________ | ||
| (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 |
|
|
|
||||
|
|
|
April 4, 2026 |
|
March 29, 2025 |
|
% 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 sales, as reported |
|
$ |
6,640,335 |
|
$ |
4,777,722 |
|
39.0 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
154,698 |
|
|
|
|
Global components sales, constant currency |
|
$ |
6,640,335 |
|
$ |
4,932,420 |
|
34.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Americas components sales, as reported |
|
$ |
2,312,147 |
|
$ |
1,568,570 |
|
47.4 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
588 |
|
|
|
|
Americas components sales, constant currency |
|
$ |
2,312,147 |
|
$ |
1,569,158 |
|
47.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
EMEA components sales, as reported |
|
$ |
1,765,179 |
|
$ |
1,340,001 |
|
31.7 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
142,292 |
|
|
|
|
EMEA components sales, constant currency |
|
$ |
1,765,179 |
|
$ |
1,482,293 |
|
19.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Asia components sales, as reported |
|
$ |
2,563,009 |
|
$ |
1,869,151 |
|
37.1 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
11,818 |
|
|
|
|
Asia components sales, constant currency |
|
$ |
2,563,009 |
|
$ |
1,880,969 |
|
36.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Global ECS sales, as reported |
|
$ |
2,833,213 |
|
$ |
2,036,295 |
|
39.1 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
118,816 |
|
|
|
|
Global ECS sales, constant currency |
|
$ |
2,833,213 |
|
$ |
2,155,111 |
|
31.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Americas ECS sales, as reported |
|
$ |
1,185,050 |
|
$ |
909,903 |
|
30.2 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
4,736 |
|
|
|
|
Americas ECS sales, constant currency |
|
$ |
1,185,050 |
|
$ |
914,639 |
|
29.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
EMEA ECS sales, as reported |
|
$ |
1,648,163 |
|
$ |
1,126,392 |
|
46.3 |
% |
|
Impact of changes in foreign currencies |
|
|
— |
|
|
114,080 |
|
|
|
|
EMEA ECS sales, constant currency |
|
$ |
1,648,163 |
|
$ |
1,240,472 |
|
32.9 |
% |
|
ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 4, 2026 |
|
|||||||||||||||||||
|
|
|
Reported |
|
Intangible |
|
Restructuring, |
|
Impact of |
|
|
|
|
|
|
|
|||||
|
|
|
GAAP |
|
amortization |
|
Integration |
|
Wind |
|
|
|
|
Non-GAAP |
|
||||||
|
|
|
measure |
|
expense |
|
and other |
|
Down(1) |
|
|
Other(2) |
|
measure |
|
||||||
|
Operating income |
|
$ |
361,602 |
|
$ |
4,765 |
|
$ |
36,664 |
|
$ |
(2,248 |
) |
|
$ |
— |
|
$ |
400,783 |
|
|
Income before income taxes |
|
|
307,260 |
|
|
4,765 |
|
|
36,664 |
|
|
(2,248 |
) |
|
|
5,792 |
|
|
352,233 |
|
|
Provision for income taxes |
|
|
71,230 |
|
|
1,164 |
|
|
8,052 |
|
|
(707 |
) |
|
|
1,391 |
|
|
81,130 |
|
|
Consolidated net income |
|
|
236,030 |
|
|
3,601 |
|
|
28,612 |
|
|
(1,541 |
) |
|
|
4,401 |
|
|
271,103 |
|
|
Noncontrolling interests |
|
|
924 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
924 |
|
|
Net income attributable to shareholders |
|
$ |
235,106 |
|
$ |
3,601 |
|
$ |
28,612 |
|
$ |
(1,541 |
) |
|
$ |
4,401 |
|
$ |
270,179 |
|
|
Net income per diluted share (3) |
|
$ |
4.55 |
|
$ |
0.07 |
|
$ |
0.55 |
|
$ |
(0.03 |
) |
|
$ |
0.09 |
|
$ |
5.22 |
|
|
Effective tax rate (4) |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
23.0 |
% |
|
|
Three months ended March 29, 2025 |
|
||||||||||||||||||||
|
|
|
Reported |
|
Intangible |
|
Restructuring, |
|
Impact of |
|
|
|
|
|
|
|
||||||
|
|
|
GAAP |
|
amortization |
|
Integration |
|
Wind |
|
|
|
|
Non-GAAP |
|
|||||||
|
|
|
measure |
|
expense |
|
and other |
|
Down(1) |
|
|
Other(2) |
|
measure |
|
|||||||
|
Operating income |
|
$ |
158,553 |
|
$ |
5,360 |
|
$ |
17,313 |
|
$ |
(2,467 |
) |
|
$ |
— |
|
|
$ |
178,759 |
|
|
Income before income taxes |
|
|
103,209 |
|
|
5,360 |
|
|
17,313 |
|
|
(2,467 |
) |
|
|
(140 |
) |
|
|
123,275 |
|
|
Provision for income taxes |
|
|
23,345 |
|
|
1,316 |
|
|
4,351 |
|
|
(781 |
) |
|
|
(33 |
) |
|
|
28,198 |
|
|
Consolidated net income |
|
|
79,864 |
|
|
4,044 |
|
|
12,962 |
|
|
(1,686 |
) |
|
|
(107 |
) |
|
|
95,077 |
|
|
Noncontrolling interests |
|
|
144 |
|
|
132 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
276 |
|
|
Net income attributable to shareholders |
|
$ |
79,720 |
|
$ |
3,912 |
|
$ |
12,962 |
|
$ |
(1,686 |
) |
|
$ |
(107 |
) |
|
$ |
94,801 |
|
|
Net income per diluted share (3) |
|
$ |
1.51 |
|
$ |
0.07 |
|
$ |
0.25 |
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
1.80 |
|
|
Effective tax rate (4) |
|
|
22.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
22.9 |
% |
||
| _________________ | ||
|
(1) |
Includes recoveries of inventory related to the wind down of businesses. |
|
|
(2) |
Other primarily includes loss (gain) on investments, net. |
|
|
(3) |
The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding. |
|
|
(4) |
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 |
||||||
|
|
|
April 4, |
|
March 29, |
||||
|
|
|
2026 |
|
2025 |
||||
|
Sales: |
|
|
|
|
|
|
||
|
Global components |
|
$ |
6,640,335 |
|
|
$ |
4,777,722 |
|
|
Global ECS |
|
|
2,833,213 |
|
|
|
2,036,295 |
|
|
Consolidated |
|
$ |
9,473,548 |
|
|
$ |
6,814,017 |
|
|
Operating income: |
|
|
|
|
|
|
||
|
Global components (a) |
|
$ |
363,520 |
|
|
$ |
171,385 |
|
|
Global ECS (b) |
|
|
103,738 |
|
|
|
77,314 |
|
|
Segment operating income |
|
$ |
467,258 |
|
|
$ |
248,699 |
|
|
Corporate operating expenses (c) |
|
|
(105,656 |
) |
|
|
(90,146 |
) |
|
Consolidated |
|
$ |
361,602 |
|
|
$ |
158,553 |
|
| (a) |
Global Components operating income includes recoveries of $2.2 million and $2.5 million in inventory write-downs related to the wind down of a business for the first quarter of 2026 and 2025, respectively. |
|
| (b) |
Global ECS gross profit margin decreased during the first quarter of 2026 compared with the year-earlier period primarily due to a $21.7 million loss related to underperformance of a certain non-cancellable multi-year purchase obligation. |
|
| (c) |
Corporate unallocated operating expenses includes restructuring, integration, and other charges of $36.7 million and $17.3 million for the first quarter of 2026 and 2025, respectively. |
|
ARROW ELECTRONICS, INC. NON-GAAP SEGMENT RECONCILIATION (In thousands) (Unaudited) |
|||||||||
|
|
|
|
|
|
|
|
|
||
|
|
|
Quarter Ended |
|
||||||
|
|
|
April 4, |
|
March 29, |
|
||||
|
|
|
2026 |
|
2025 |
|
||||
|
Global components gross profit, as reported |
|
$ |
806,748 |
|
|
$ |
554,945 |
|
|
|
Impact of wind down to inventory |
|
|
(2,248 |
) |
|
|
(2,467 |
) |
|
|
Global components non-GAAP gross profit |
|
$ |
804,500 |
|
|
$ |
552,478 |
|
|
|
Global components gross profit as a percentage of sales, as reported |
|
|
12.1 |
|
% |
|
11.6 |
|
% |
|
Global components non-GAAP gross profit as a percentage of sales |
|
|
12.1 |
|
% |
|
11.6 |
|
% |
|
|
|
|
|
|
|
|
|
||
|
Global ECS gross profit, as reported |
|
$ |
283,712 |
|
|
$ |
219,047 |
|
|
|
Global ECS gross profit as a percentage of sales, as reported |
|
|
10.0 |
|
% |
|
10.8 |
|
% |
|
|
|
|
|
|
|
|
|
||
|
|
|
Quarter Ended |
|
||||||
|
|
|
April 4, |
|
March 29, |
|
||||
|
|
|
2026 |
|
2025 |
|
||||
|
Global components operating income, as reported |
|
$ |
363,520 |
|
|
$ |
171,385 |
|
|
|
Intangible assets amortization expense |
|
|
3,837 |
|
|
|
4,438 |
|
|
|
Impact of wind down to inventory |
|
|
(2,248 |
) |
|
|
(2,467 |
) |
|
|
Global components non-GAAP operating income |
|
$ |
365,109 |
|
|
$ |
173,356 |
|
|
|
Global components operating income as a percentage of sales, as reported |
|
|
5.5 |
|
% |
|
3.6 |
|
% |
|
Global components non-GAAP operating income as a percentage of sales |
|
|
5.5 |
|
% |
|
3.6 |
|
% |
|
|
|
|
|
|
|
|
|
||
|
Global ECS operating income, as reported |
|
$ |
103,738 |
|
|
$ |
77,314 |
|
|
|
Intangible assets amortization expense |
|
|
928 |
|
|
|
922 |
|
|
|
Global ECS non-GAAP operating income |
|
$ |
104,666 |
|
|
$ |
78,236 |
|
|
|
Global ECS operating income as a percentage of sales, as reported |
|
|
3.7 |
|
% |
|
3.8 |
|
% |
|
Global ECS non-GAAP operating income as a percentage of sales |
|
|
3.7 |
|
% |
|
3.8 |
|
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260507904503/en/
Investors:
Michael Nelson,
Vice President, Investor Relations
720-654-9893
Media:
John Hourigan,
Vice President, Public Affairs and Corporate Marketing
303-824-4586
KEYWORDS: Colorado United States North America
INDUSTRY KEYWORDS: Electronic Design Automation Engineering Technology Manufacturing Software Hardware
MEDIA:
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