Arrow Electronics (ARW) surges with 32% Q2 revenue growth and new COO hire

Rhea-AI Filing Summary

Arrow Electronics reported strong second‑quarter 2026 results, with total revenue of $10.0 billion, up 32% year over year, and net income attributable to shareholders of $272.7 million, up 45%. Diluted EPS was $5.26 and non‑GAAP diluted EPS $5.45, both above the high end of guidance.

Global Components sales rose 39% to about $7.37 billion, with operating income up 112% to $396.3 million. Global ECS sales increased 14% to about $2.63 billion, while operating income decreased 12% to $85.4 million. Operating cash flow was $318 million in the quarter and $1.02 billion year‑to‑date, and $43 million of shares were repurchased. Third‑quarter 2026 guidance calls for Global Components GAAP sales of $7.50–$7.90 billion, Global ECS GAAP sales of $2.10–$2.30 billion, and non‑GAAP diluted EPS of $4.83–$5.03.

The company also appointed Deidra (Dee) C. Merriwether as President and Chief Operating Officer effective September 8, 2026. Her compensation includes a $900,000 base salary, a $1,125,000 target annual incentive, a $2,000,000 target long‑term incentive split between RSUs and PSUs, a $535,000 sign‑on bonus tied to relocation, relocation benefits, and eligibility for severance and indemnification arrangements.

Positive

• Q2 2026 revenue grew 32% to $10.0 billion, while diluted EPS rose 47% to $5.26 and non‑GAAP EPS 124% to $5.45, all above the high end of guidance.
• Global Components delivered strong leverage, with Q2 sales up 39% to about $7.37 billion and operating income up 112% to $396.3 million.
• Arrow generated robust cash, with Q2 operating cash flow of $318 million and year‑to‑date operating cash flow of $1.02 billion, while reducing long‑term debt to $2.05 billion from $3.08 billion at year‑end 2025.

Negative

• Global ECS Q2 operating income declined 12% year over year to $85.4 million despite a 14% increase in sales.
• Q3 2026 outlook for Global ECS GAAP sales of $2.10–$2.30 billion compares to $2.63 billion in Q2 2026, indicating a sequential decline of 12–20%.

8-K Event Classification

4 items: 2.02, 5.02, 7.01, 9.01

4 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 total revenue: $10.0 billion Q2 2026 diluted EPS: $5.26 Q2 2026 non-GAAP diluted EPS: $5.45 +5 more

8 metrics

Q2 2026 total revenue $10.0 billion Second quarter 2026 consolidated sales, 32% year-over-year increase

Q2 2026 diluted EPS $5.26 Net income per diluted share for the quarter ended July 4, 2026, up 47% year over year

Q2 2026 non-GAAP diluted EPS $5.45 Non-GAAP net income per diluted share for Q2 2026, 124% higher than Q2 2025

Q2 2026 operating cash flow $318 million Cash flow from operating activities in the second quarter of 2026

Long-term debt $2,053,041 Long-term debt in thousands of dollars as of July 4, 2026

Global Components Q2 2026 sales $7,365,625 Global Components segment sales in thousands of dollars, up 39% year over year

Global ECS Q2 2026 operating income $85,375 Global Enterprise Computing Solutions operating income in thousands of dollars, down 12% year over year

Q3 2026 non-GAAP EPS guidance $4.83 to $5.03 Forecast non-GAAP net income per diluted share for the quarter ending October 3, 2026

Key Terms

non-GAAP net income, gross billings, book-to-bill ratios, clawback policies, +2 more

6 terms

non-GAAP net income financial

"Non-GAAP net income per diluted share (1) | 5.45 | 2.43 | 124 %"

Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.

gross billings financial

"Management uses gross billings as an operational metric to monitor operating performance"

Gross Billings is the total amount of money a company earns from selling its products or services before any expenses or discounts are taken out. It shows how much business the company is doing overall and helps investors understand its growth or size. Think of it as the total sales receipt before deducting costs or returns.

book-to-bill ratios financial

"Book-to-bill ratios remain well above parity, and our backlog continues to build"

clawback policies regulatory

"The foregoing equity awards will be subject to the Company's ... and the Company's clawback policies."

change in control regulatory

"Executive Change in Control Retention Agreement appended to the Employment Agreement"

A "change in control" occurs when the ownership or management of a company shifts significantly, such as through a merger, acquisition, or sale of a large part of its assets. This change can impact how the company is run and may influence its future direction. For investors, it matters because it can affect the company's stability, strategy, and value, often signaling potential changes in investment risk or opportunity.

Management Incentive Compensation Plan financial

"target annual award under the Company's Management Incentive Compensation Plan will be $1,125,000"

Earnings Snapshot

Revenue: $10.0 billion · Guidance included

Quarter ended July 4, 2026

Revenue $10.0 billion up 32% year over year

GAAP diluted EPS $5.26 up 47% year over year

Non-GAAP diluted EPS $5.45 up 124% year over year

Global Components sales $7,365,625 (thousands) up 39% year over year

Global ECS sales $2,626,612 (thousands) up 14% year over year

Guidance

For Q3 2026, Global Components GAAP sales are guided to $7.50–$7.90 billion, Global ECS GAAP sales to $2.10–$2.30 billion, and non-GAAP diluted EPS to a range of $4.83–$5.03.

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FAQ

How did Arrow Electronics (ARW) perform financially in Q2 2026?

Arrow Electronics reported Q2 2026 revenue of $10.0 billion, up 32% year over year, and net income attributable to shareholders of $272.7 million, up 45%. Diluted EPS was $5.26 and non‑GAAP diluted EPS $5.45, both above the high end of company guidance.

How did Arrow Electronics (ARW) business segments perform in Q2 2026?

In Q2 2026, Global Components sales rose 39% to about $7.37 billion, with operating income up 112% to $396.3 million. Global ECS sales increased 14% to about $2.63 billion, while operating income declined 12% to $85.4 million.

What cash flow and capital allocation did Arrow Electronics (ARW) report for Q2 2026?

Arrow generated $318 million of cash flow from operations in Q2 2026 and $1.02 billion year‑to‑date. The company also repurchased $43 million of shares during the quarter and ended July 4, 2026, with $2.05 billion of long‑term debt.

What guidance did Arrow Electronics (ARW) provide for Q3 2026?

For Q3 2026, Arrow forecasts Global Components GAAP sales of $7.50–$7.90 billion and Global ECS GAAP sales of $2.10–$2.30 billion. The company expects non‑GAAP diluted EPS between $4.83 and $5.03, after adjustments for amortization and restructuring expenses.

Who is Deidra (Dee) Merriwether and what is her new role at Arrow Electronics (ARW)?

Deidra (Dee) C. Merriwether was appointed President and Chief Operating Officer of Arrow Electronics, effective September 8, 2026. She has senior finance and operating experience at W.W. Grainger and Sears Holdings and currently serves as an independent director of Weyerhaeuser Company.

What are the key compensation terms for Dee Merriwether at Arrow Electronics (ARW)?

Ms. Merriwether will receive a $900,000 base salary, a $1,125,000 target annual incentive, and a $2,000,000 target long‑term incentive split between RSUs and PSUs. She also receives a $535,000 sign‑on bonus, relocation benefits, and eligibility for severance and indemnification protections.

How fast is Arrow Electronics (ARW) growing year‑to‑date in 2026?

For the first six months of 2026, Arrow reported sales of $19.47 billion, up 35% year over year, and net income attributable to shareholders of $507.8 million, up 90%. Non‑GAAP diluted EPS was $10.67, a 152% increase from the prior‑year period.

0000007536false00000075362026-08-062026-08-06

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 6, 2026

ARROW ELECTRONICS, INC.

(Exact Name of Registrant as Specified in Charter)

​

​	​	​
New York	1-4482	11-1806155
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

​

​

​	​	​	​
9151 East Panorama Circle,	Centennial,	CO	80112
(Address of principal executive offices)			(Zip Code)

​

Registrant’s telephone number, including area code: (303) 824-4000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

​

​	​
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

​

Securities registered pursuant to Section 12(b) of the Act:

​

​	​	​	​	​
Title of each class	​	Trading Symbol(s)	​	Name of the exchange on which registered
Common Stock, $1 par value	​	ARW	​	New York Stock Exchange

​

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company      ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

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​

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 6, 2026, Arrow Electronics, Inc. (the “Company”) issued a press release announcing its second quarter 2026 earnings. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 5.02 DEPARTURE OF Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

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On August 6, 2026, the Company announced the appointment of Deidra (Dee) C. Merriwether as the Company’s President and Chief Operating Officer, effective as of September 8, 2026 (the “Effective Date”).

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Ms. Merriwether, 57, currently serves as an independent director of Weyerhaeuser Company, a timber, land and forest products company, and as a member of its Audit Committee and Governance and Corporate Responsibility Committee. Prior to joining the Company, Ms. Merriwether served as Senior Vice President and Chief Financial Officer of W.W. Grainger, Inc., a broad line distributor of maintenance, repair and operating products and services, from 2021 until her appointment at the Company. Prior to that, she served as Senior Vice President and President, North American Sales and Services, and held other positions of increasing responsibility with W.W. Grainger, Inc. beginning in 2013. Prior to joining W.W. Grainger, Inc., Ms. Merriwether held positions of increasing responsibility in general management and finance at Sears Holdings Corporation, an integrated retailer, from 2002 to 2013, including serving as Chief Operating Officer, Retail Formats, immediately prior to her departure in 2013.

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In connection with her appointment as President and Chief Operating Officer of the Company, Ms. Merriwether and the Company entered into an Employment Agreement dated as of July 31, 2026 (the “Employment Agreement”), a copy of which is attached hereto as Exhibit 10.1 and is incorporated into this Item 5.02 by reference. As of the Effective Date, Ms. Merriwether’s annual base salary will be $900,000; her target annual award under the Company's Management Incentive Compensation Plan will be $1,125,000 (subject to proration for any partial year based on Ms. Merriwether’s period of active employment); and, subject to approval by the Company’s Board of Directors (the “Board”) in February 2027, her target annual award under the Company’s Long-Term Incentive Plan will be $2,000,000, 50% of which will be in the form of time-based vesting restricted stock units (“RSUs”) and 50% of which will be in the form of performance-based vesting restricted stock units (“PSUs”). The actual amount of any cash incentive award payable to Ms. Merriwether will remain subject to approval by the Board. Ms. Merriwether will be eligible to participate in the Company’s employee benefit plans and programs on the same basis as other similarly situated employees.

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Ms. Merriwether will also receive a one-time sign-on bonus of $535,000 upon the commencement of her employment and Ms. Merriwether's relocation to the Denver, Colorado metropolitan area, subject to a repayment obligation in the event of termination by the Company for “cause” or Ms. Merriwether’s resignation other than for “good reason” prior to the first anniversary of the Effective Date. In addition, subject to approval by the Board, Ms. Merriwether will receive:

​

● a one-time award of RSUs with a grant date value of $6,500,000 to be granted within 30 days following Ms. Merriwether's relocation to the Denver, Colorado metropolitan area, vesting 50% each on the first and second anniversary of the Effective Date, subject to her continued employment through the applicable vesting dates;

● a one-time award, to be granted in February 2027, of PSUs with a grant date value of $2,000,000, subject to the achievement of certain stock price and financial performance targets over a three-year performance period covering calendar years 2027, 2028 and 2029, and subject to the same performance terms and conditions that apply to the annual PSU grants to be made in 2027; and

● a one-time award, to be granted in February 2027, of RSUs with a grant date value of $1,000,000, vesting annually over a four-year period beginning on the grant date and subject to her continued employment through the applicable vesting dates.

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The foregoing equity awards will be subject to the terms of the Company's 2004 Omnibus Incentive Plan, as amended and restated, the Company's standard award agreements, and the Company's clawback policies.

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Ms. Merriwether will receive comprehensive relocation benefits in accordance with the Company’s executive benefit relocation program, subject to repayment if her employment is terminated other than by the Company without “cause” or by Ms. Merriwether for “good reason” prior to the second anniversary of the later of her relocation to the

Denver, Colorado metropolitan area or the Effective Date. She is also entitled to reimbursement of legal fees up to $15,000 incurred in connection with negotiating the Employment Agreement.

​

Ms. Merriwether’s eligibility for severance benefits, if any, in connection with a termination of employment are subject to the Company’s form of Executive Severance Policy and the Executive Change in Control Retention Agreement appended to the Employment Agreement, including the related Executive Restrictive Covenants Agreements, as described in the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission (“SEC”) on March 30, 2026 and Part II, Item 5 of the Company’s Form 10-Q filed with the SEC on May 7, 2026; provided, however, that Ms. Merriwether will be entitled to receive the severance benefits that are payable under the Executive Severance Policy upon a termination by the Company without “cause” or in the event that she resigns for “good reason” (as defined in her Executive Change in Control Retention Agreement) regardless of whether a “change in control” (as defined in the Executive Change in Control Retention Agreement) has occurred. Ms. Merriwether will enter into the Company's standard form of indemnification agreement, pursuant to which the Company will indemnify her against certain liabilities that may arise in connection with her status or service as an officer of the Company.

​

The selection of Ms. Merriwether to serve as the Company’s President and Chief Operating Officer was not pursuant to any arrangement or understanding with respect to any other person. There are no family relationships between Ms. Merriwether and any director or executive officer of the Company, and Ms. Merriwether has no direct or indirect material interest in any “related party” transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

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Item 7.01 Regulation FD Disclosure

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On August 6, 2026, the Company issued a press release relating to the above executive appointment. A copy of the press release is attached hereto as Exhibit 99.2 and is incorporated into this Item 7.01 by reference.

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The information in the foregoing Items 2.02 and 7.01, and the corresponding exhibits thereto, is being furnished and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d)           EXHIBITS

​	​		​
​	​		​
Exhibit Number	​		Description
​	​		​
10.1	​		Employment Agreement dated July 31, 2026, between the Company and Deidra C. Merriwether.
99.1	​		Earnings press release issued by Arrow Electronics, Inc., dated August 6, 2026.
99.2	​		Executive Appointment press release issued by Arrow Electronics, Inc., dated August 6, 2026.
104		​		Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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​	​	ARROW ELECTRONICS, INC.
​	​	​	​
​	​	​	​
Date:	August 6, 2026	By:	/s/ Carine Jean-Claude
​	​	Name:	Carine Jean-Claude
​	​	Title:	Senior Vice President, Chief Legal and Compliance Officer, and Secretary

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ARROW ELECTRONICS, INC. 9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000	​	NEWS

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Exhibit 99.1

Arrow Electronics Reports Strong Second-Quarter 2026 Results

--Total Revenue of $10.0 billion, up 32% Year-over-Year, Above High End of Guidance--

--Diluted earnings Per Share of $5.26 and Non-GAAP Earnings Per Share of $5.45, Both Above High End of Guidance--

CENTENNIAL, Colo.--(BUSINESS WIRE)- Aug. 6, 2026--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its second quarter of 2026.

“Arrow delivered another strong quarter, underpinned by meaningful year-over-year growth in revenue, profit margin and earnings per share, all of which exceeded expectations,” said Bill Austen, Arrow’s interim president and chief executive officer. “Both our Global Components and Global Enterprise Computing Solutions businesses continue to demonstrate strong strategic execution, supported by healthy demand across regions, end markets and customer segments. Book-to-bill ratios remain well above parity, and our backlog continues to build in both size and duration.”

“Our results are the tangible outcome of the dedication, effort, decisions, and tradeoffs put forward by everyone at Arrow. The results also reinforce our belief in the strength of our business and our ability to continue delivering profitable growth. Together with our higher-margin, value-added offerings, scalable operating model and focused capital allocation strategy, we believe Arrow is well positioned to create long-term value for our suppliers, customers and shareholders.”

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Arrow Consolidated

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Quarter Ended

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Six Months Ended

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July 4,

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June 28,

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July 4,

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June 28,

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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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2026

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2025

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Change

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Consolidated sales

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$

9,992

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$

7,580

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32

%

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$

19,466

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$

14,394

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35

%

Net income attributable to shareholders

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273

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188

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45

%

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508

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267

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90

%

Net income per diluted share

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5.26

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3.59

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47

%

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​

9.81

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5.09

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93

%

Non-GAAP net income attributable to shareholders (1)

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​

283

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127

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122

%

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553

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222

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149

%

Non-GAAP net income per diluted share (1)

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​

5.45

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2.43

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124

%

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​

10.67

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4.23

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152

%

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In the second quarter of 2026, sales increased 32 percent year over year and increased 30 percent year over year on a constant currency basis. Changes in foreign currencies had a positive impact on growth of $93.5 million on sales and $0.09 on earnings per share on a diluted basis compared to the second quarter of 2025.

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Global Components

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Quarter Ended

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Six Months Ended

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July 4,

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June 28,

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July 4,

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June 28,

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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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2026

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2025

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Change

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Global Components sales

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$

7,366

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$

5,285

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39

%

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$

14,006

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$

10,063

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39

%

Global Components operating income

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396

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187

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112

%

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760

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358

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112

%

Global Components non-GAAP operating income (1)

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397

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189

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110

%

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762

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362

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111

%

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In the second quarter of 2026, Global Components sales increased 39 percent year over year and increased 38 percent year over year on a constant currency basis. Americas Components second-quarter sales increased 44 percent year over year. EMEA Components second-quarter sales increased 36 percent year over year and increased 32 percent year over year on a constant currency basis. Asia-Pacific Components second-quarter sales increased 38 percent year over year and increased 37 percent year over year on a constant currency basis.

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	​	1

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ARROW ELECTRONICS, INC. 9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000	​	NEWS

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Global Enterprise Computing Solutions ("ECS")

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Quarter Ended

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Six Months Ended

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July 4,

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June 28,

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July 4,

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June 28,

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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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2026

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2025

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Change

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Global ECS sales

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$

2,627

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$

2,295

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14

%

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$

5,460

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$

4,331

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26

%

Global ECS operating income

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85

​

97

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(12)

%

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189

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174

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9

%

Global ECS non-GAAP operating income (1)

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​

86

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98

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(12)

%

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​

191

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176

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8

%

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In the second quarter of 2026, Global ECS sales increased 14 percent year over year and increased 13 percent year over year on a constant currency basis. Global ECS gross billings increased 14 percent year over year. Global ECS second-quarter operating income and non-GAAP operating income decreased 12 percent year over year. EMEA ECS second-quarter sales increased 20 percent year over year and increased 17 percent year over year on a constant currency basis. Americas ECS second-quarter sales increased 8 percent year over year.

Other Financial Information

In the second quarter of 2026, Arrow generated $318 million of cash flow from operations partly due to the timing of cash flows within Global Components supply chain services offerings. Arrow also repurchased $43 million of shares in the second quarter of 2026.

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¹ A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

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	​	2

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Third-Quarter 2026 Outlook

● Consolidated sales of $9.60 billion to $10.20 billion, with Global Components sales of $7.50 billion to $7.90 billion, and Global ECS sales of $2.10 billion to $2.30 billion

● Net income per share on a diluted basis of $4.72 to $4.92, and non-GAAP net income per share on a diluted basis of $4.83 to $5.03

● Average tax rate in the range of 23 percent to 25 percent

● Interest expense of approximately $50 million

● Changes in foreign currencies to decrease sales by approximately $27 million, and earnings per share on a diluted basis by $0.01 compared to the third quarter of 2025

● Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $50 million, and earnings per share on a diluted basis to decrease by $0.04 compared to the second quarter of 2026

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Third-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation

NON-GAAP SALES RECONCILIATION

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Quarter Ended

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Quarter Ended

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October 3,

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September 27,

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October 3,

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July 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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$

$7.50 - 7.90

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$

5.56

35% - 42%

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$

$7.50 - 7.90

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$

7.37

2% - 7%

Impact of changes in foreign currencies

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—

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(0.01)

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—

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(0.03)

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Global Components sales, constant currency

​

$

$7.50 - 7.90

​

$

5.55

35% - 42%

​

$

$7.50 - 7.90

​

$

7.34

2% - 8%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Global ECS sales, GAAP

​

$

$2.10 - 2.30

​

$

2.16

(3)% - 7%

​

$

$2.10 - 2.30

​

$

2.63

(20)% - (12)%

Impact of changes in foreign currencies

​

—

​

(0.02)

​

​

—

​

(0.02)

​

Global ECS sales, constant currency

​

$

$2.10 - 2.30

​

$

2.14

(2)% - 8%

​

$

$2.10 - 2.30

​

$

2.61

(19)% - (12)%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

NON-GAAP EARNINGS RECONCILIATION

​

​ ​ ​

​

Reported

​ ​ ​

Intangible amortization

​ ​ ​

Restructuring &

​ ​ ​

​

​

​

​

​

GAAP measure

expense

integration charges

​

​

Non-GAAP measure

Net income per diluted share

​

​

$4.72 to $4.92

​

​

$0.07

​

​

$0.04

​

​

$4.83 to $5.03

​

​

​	​	​
	​	3

​

​

Earnings Presentation

Please refer to the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company may use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the website noted above, in addition to following the company’s press releases, SEC filings, and public conference calls and webcasts.

​

Webcast and Conference Call Information

Arrow Electronics will host a conference call to discuss second-quarter 2026 financial results on Aug. 6, 2026, at 4:30 p.m. ET.

A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/235232794. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.

​

About Arrow Electronics

Arrow Electronics (NYSE:ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With global 2025 sales of $30.9 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.

Key Business Metrics

Management uses gross billings as an operational metric to monitor operating performance of its Global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information in evaluating the overall performance of the Global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represent amounts invoiced to customers for goods and services during a specified period and do not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.

Information Relating to Forward-Looking Statements

This press release includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “would,” “could,” “believes,” “seeks,” “projected,” “potential,” “estimates,” and similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions or changes, including those that may occur in connection with recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; impacts of military conflict and sanctions; political instability and changes; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; disruptions, shortages, or inefficiencies in the supply chain; non-compliance with certain laws, regulations, or executive orders, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; changes in relationships with key suppliers; management transitions, including the company’s search for a permanent CEO; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; other vagaries in the Global Components and the Global ECS markets; changes to applicable laws, regulations, executive orders, or rules relating to government contractors and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; commercial disputes, patent infringement claims, product liability lawsuits, or other legal proceedings; foreign tax and other loss contingencies; failure, disruption, or compromise of the company’s information systems or those of a third-party service provider, including unauthorized use or disclosure of company, supplier, or customer information; outbreaks, epidemics, pandemics, or public health crises; the effects of natural or man-made catastrophic events; and the company’s ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned

​

​	​	​
	​	4

​

​

not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, gross profit, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate, and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization; restructuring, integration, and other; net gains (losses) on investments; inventory recoveries related to the wind down of a business within Global Components (“impact of wind down”); tax adjustments related to the wind down of a business; and employee severance and benefits costs not related to restructuring initiative presented in cost of sales. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP.

​	​	​
Contacts	​ ​ ​	​
Investors:	​	Michael Nelson,
​	​	Vice President, Investor Relations
​	​	720-654-9893
​	​	​
Media:	​	John Hourigan,
​	​	Vice President, Public Affairs and Corporate Marketing
​	​	303-824-4586

​

​

​

​

​	​	​
	​	5

​

​

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarter Ended

​

Six Months Ended

​

​ ​ ​

​

July 4, 2026

​ ​ ​

​

June 28, 2025

​ ​ ​

​

July 4, 2026

​ ​ ​

​

June 28, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

Sales

​

$

9,992,237

​

$

7,579,947

​

$

19,465,785

​

$

14,393,964

Cost of sales

​

8,867,028

​

6,731,290

​

17,250,116

​

12,771,315

Gross profit

​

1,125,209

​

848,657

​

2,215,669

​

1,622,649

Operating expenses:

​

​

​

​

​

​

​

​

Selling, general, and administrative

​

688,138

​

600,990

​

1,344,279

​

1,163,306

Depreciation and amortization

​

35,599

​

35,162

​

71,652

​

70,972

Restructuring, integration, and other

​

24,139

​

21,919

​

60,803

​

39,232

​

​

747,876

​

658,071

​

1,476,734

​

1,273,510

Operating income

​

377,333

​

190,586

​

738,935

​

349,139

Equity in earnings (losses) of affiliated companies

​

2,065

​

(659)

​

2,961

​

661

Gain on investments, net

​

12,044

​

103,976

​

6,252

​

104,116

Post-retirement expense

​

(999)

​

(664)

​

(1,961)

​

(1,286)

Interest and other financing expense, net

​

(37,297)

​

(60,283)

​

(85,781)

​

(116,465)

Income before income taxes

​

353,146

​

232,956

​

660,406

​

336,165

Provision for income taxes

​

80,311

​

45,934

​

151,541

​

69,279

Consolidated net income

​

272,835

​

187,022

​

508,865

​

266,886

Noncontrolling interests

​

124

​

(727)

​

1,048

​

(583)

Net income attributable to shareholders

​

$

272,711

​

$

187,749

​

$

507,817

​

$

267,469

Net income per share:

​

​

​

​

​

​

​

​

Basic

​

$

5.32

​

$

3.62

​

$

9.90

​

$

5.14

Diluted

​

$

5.26

​

$

3.59

​

$

9.81

​

$

5.09

Weighted-average shares outstanding:

​

​

​

​

​

​

​

​

Basic

​

51,306

​

51,856

​

51,314

​

52,057

Diluted

​

51,867

​

52,342

​

51,787

​

52,504

​

​

​

​

​

​

​

​	​	​
	​	6

​

​

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)

​	​	​	​	​	​	​
​	​ ​ ​	​	July 4,	​ ​ ​	​	December 31,
​	​	​	2026	​	​	2025
​	​	​	​	​	​	​
ASSETS		​	​		​	​
Current assets:		​	​		​	​
Cash and cash equivalents	​	$	244,631	​	$	306,467
Accounts receivable, net	​		28,008,735	​		19,738,666
Inventories	​		5,939,587	​		5,081,863
Other current assets	​		796,035	​		533,035
Total current assets	​		34,988,988	​		25,660,031
Property, plant, and equipment, at cost:	​		​	​		​
Land	​		5,691	​		5,691
Buildings and improvements	​		205,840	​		199,433
Machinery and equipment	​		1,728,678	​		1,715,415
​	​		1,940,209	​		1,920,539
Less: Accumulated depreciation and amortization	​		(1,479,390)	​		(1,445,889)
Property, plant, and equipment, net	​		460,819	​		474,650
Investments in affiliated companies	​		62,149	​		59,315
Intangible assets, net	​		67,514	​		77,022
Goodwill	​		2,109,446	​		2,120,071
Other assets	​		687,765	​		687,049
Total assets	​	$	38,376,681	​	$	29,078,138
LIABILITIES AND EQUITY	​		​	​		​
Current liabilities:	​		​	​		​
Accounts payable	​	$	27,107,855	​	$	17,383,796
Accrued expenses	​		1,516,824	​		1,461,261
Short-term borrowings, including current portion of long-term debt	​		117,539	​		341
Total current liabilities	​		28,742,218	​		18,845,398
Long-term debt	​		2,053,041	​		3,084,715
Other liabilities	​		502,541	​		489,326
​	​	​	​	​	​	​
Equity:	​		​	​		​
Shareholders’ equity:	​		​	​		​
Common stock, par value $1:	​		​	​		​
Authorized - 160,000 shares in both 2026 and 2025	​		​	​		​
Issued - 56,094 and 55,838 shares in 2026 and 2025, respectively	​		56,094	​		55,838
Capital in excess of par value	​		613,560	​		586,993
Treasury stock (5,119 and 4,768 shares in 2026 and 2025, respectively), at cost	​		(554,346)	​		(483,571)
Retained earnings	​		7,059,909	​		6,552,092
Accumulated other comprehensive loss	​		(170,036)	​		(126,640)
Total shareholders’ equity	​		7,005,181	​		6,584,712
Noncontrolling interests	​		73,700	​		73,987
Total equity	​		7,078,881	​		6,658,699
Total liabilities and equity	​	$	38,376,681	​	$	29,078,138

​

​

​

​

​

​

​

​	​	​
	​	7

​

​

​

​

​

​

​

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

​

​	​	​	​	​	​	​
​	​	Quarter Ended
​	​ ​ ​	July 4, 2026		​ ​ ​	June 28, 2025
Cash flows from operating activities:		​	​		​	​
Consolidated net income:	​	$	272,835	​	$	187,022
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:	​		​	​		​
Depreciation and amortization	​		35,599	​		35,162
Amortization of stock-based compensation	​		12,816	​		11,641
Equity in earnings of affiliated companies	​		(2,065)	​		659
Deferred income taxes	​		2,649	​		11,092
Loss on dispostions of businesses, net	​	​	14,264	​		—
Gain on investments, net	​		(11,917)	​	​	(103,863)
Other	​		289	​		376
Change in assets and liabilities	​		​	​		​
Accounts receivable, net	​		(2,058,576)	​		(2,627,707)
Inventories	​		(219,734)	​		108,833
Accounts payable	​		2,364,684	​		2,200,976
Accrued expenses	​		105,671	​		(2,027)
Other assets and liabilities	​		(198,166)	​		(28,060)
Net cash provided by (used for) operating activities	​		318,349	​		(205,896)
Cash flows from investing activities:	​		​	​		​
Acquisition of property, plant, and equipment	​		(21,138)	​		(18,618)
Proceeds from settlement of net investment hedges	​	​	—	​	​	24,858
Proceeds from sale of investments in equity securities	​	​	—	​	​	100,000
Net cash (used for) provided by investing activities	​		(21,138)	​		106,240
Cash flows from financing activities:	​		​	​	​	​
Change in short-term and other borrowings	​		4,581	​		274,187
(Repayments of) proceeds from long-term bank borrowings, net	​		(300,074)	​		50,566
Redemption of notes	​	​	—	​	​	(350,000)
Proceeds from exercise of stock options	​		5,393	​		2,299
Repurchases of common stock	​		(41,855)	​		(50,736)
Other	​		(153)	​		(148)
Net cash used for financing activities	​	​	(332,108)	​	​	(73,832)
Effect of exchange rate changes on cash	​		(6,984)	​		163,576
Net decrease in cash and cash equivalents	​		(41,881)	​		(9,912)
Cash and cash equivalents at beginning of period	​		286,512	​		231,882
Cash and cash equivalents at end of period	​	$	244,631	​	$	221,970

​

​

​

​

​

​	​	​
	​	8

​

​

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

​

​

​	​	​	​	​	​	​
​	​	Six Months Ended
​	​ ​ ​	July 4, 2026		​ ​ ​	June 28, 2025
Cash flows from operating activities:		​	​		​	​
Consolidated net income:	​	$	508,865	​	$	266,886
Adjustments to reconcile consolidated net income to net cash provided by operations:	​		​	​		​
Depreciation and amortization	​		71,652	​		70,972
Amortization of stock-based compensation	​		22,415	​		30,200
Equity in earnings of affiliated companies	​		(2,961)	​		(661)
Deferred income taxes	​		12,403	​		5,251
Loss on disposition of businesses, net	​	​	22,830	​		—
Gain on investments, net	​		(6,046)	​		(103,895)
Other	​		(173)	​		(302)
Change in assets and liabilities:	​		​	​		​
Accounts receivable, net	​		(8,338,902)	​		(1,896,481)
Inventories	​		(876,277)	​		46,449
Accounts payable	​		9,755,373	​		1,949,919
Accrued expenses	​		112,581	​		(81,710)
Other assets and liabilities	​		(263,659)	​		(140,845)
Net cash provided by operating activities	​		1,018,101	​		145,783
Cash flows from investing activities:	​		​	​		​
Acquisition of property, plant, and equipment	​		(53,246)	​		(43,597)
Proceeds from settlement of net investment hedges	​	​	—	​		24,858
Proceeds from sale of investments in equity securities	​	​	—	​		100,000
Net cash (used for) provided by investing activities	​		(53,246)	​		81,261
Cash flows from financing activities:	​		​	​		​
Change in short-term and other borrowings	​		7,262	​		454,803
Repayments of long-term bank borrowings, net	​		(923,170)	​		(413,657)
Redemption of notes	​		—	​		(350,000)
Proceeds from exercise of stock options	​		10,431	​		3,203
Repurchases of common stock	​		(75,147)	​		(110,149)
Other	​		(153)	​		(148)
Net cash used for financing activities	​		(980,777)	​		(415,948)
Effect of exchange rate changes on cash	​		(45,914)	​		222,067
Net (decrease) increase in cash and cash equivalents	​		(61,836)	​		33,163
Cash and cash equivalents at beginning of period	​		306,467	​		188,807
Cash and cash equivalents at end of period	​	$	244,631	​	$	221,970

​

​

​

​

​

​

​

​	​	​
	​	9

​

​

​

​

​

ARROW ELECTRONICS, INC.

ECS Gross Billings

(In thousands)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Global Enterprise Computing Solutions - Gross Billings(1)

​

​ ​ ​

Quarter Ended

​ ​ ​

Six Months Ended

​

​

​

July 4,

​

​

June 28,

​

​

​

​

​

July 4,

​

​

June 28,

​

​

​

​

​

​

2026

​

​

2025

​

% Change

​

​

​

2026

​

​

2025

​

% Change

​

Gross billings:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Americas ECS

​

$

2,693,364

​

$

2,543,759

​

6

%

​

$

5,652,975

​

$

4,851,496

​

17

%

EMEA ECS

​

3,162,931

​

2,596,209

​

22

%

​

6,636,643

​

4,927,426

​

35

%

Global ECS

​

$

5,856,295

​

$

5,139,968

​

14

%

​

$

12,289,618

​

$

9,778,922

​

26

%

(1) Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

b

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​	​	​
	​	10

​

​

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Quarter Ended					​ ​ ​	​ ​ ​
​	​ ​ ​	July 4, 2026		​ ​ ​	June 28, 2025		​ ​ ​	% Change
​	​	​	​	​	​	​	​	​	​
Consolidated sales, as reported	​	$	9,992,237	​	$	7,579,947		31.8	%
Impact of changes in foreign currencies	​		—	​		93,482		​	​
Consolidated sales, constant currency	​	$	9,992,237	​	$	7,673,429		30.2	%
​	​	​	​	​	​	​	​	​	​
Global Components sales, as reported	​	$	7,365,625	​	$	5,284,898		39.4	%
Impact of changes in foreign currencies	​		—	​		58,847		​	​
Global Components sales, constant currency	​	$	7,365,625	​	$	5,343,745		37.8	%
​	​	​	​	​	​	​	​	​	​
Americas Components sales, as reported	​	$	2,454,521	​	$	1,707,522		43.7	%
Impact of changes in foreign currencies	​		—	​		203		​	​
Americas Components sales, constant currency	​	$	2,454,521	​	$	1,707,725		43.7	%
​	​	​	​	​	​	​	​	​	​
EMEA Components sales, as reported	​	$	1,938,784	​	$	1,426,944		35.9	%
Impact of changes in foreign currencies	​		—	​		45,924		​	​
EMEA Components sales, constant currency	​	$	1,938,784	​	$	1,472,868		31.6	%
​	​	​	​	​	​	​	​	​	​
Asia Components sales, as reported	​	$	2,972,320	​	$	2,150,432		38.2	%
Impact of changes in foreign currencies	​		—	​		12,720		​	​
Asia Components sales, constant currency	​	$	2,972,320	​	$	2,163,152		37.4	%
​	​	​	​	​	​	​	​	​	​
Global ECS sales, as reported	​	$	2,626,612	​	$	2,295,049		14.4	%
Impact of changes in foreign currencies	​		—	​		34,635		​	​
Global ECS sales, constant currency	​	$	2,626,612	​	$	2,329,684		12.7	%
​	​	​	​	​	​	​	​	​	​
Americas ECS sales, as reported	​	$	1,135,513	​	$	1,052,785		7.9	%
Impact of changes in foreign currencies	​		—	​		(185)		​	​
Americas ECS sales, constant currency	​	$	1,135,513	​	$	1,052,600		7.9	%
​	​	​	​	​	​	​	​	​	​
EMEA ECS sales, as reported	​	$	1,491,099	​	$	1,242,264		20.0	%
Impact of changes in foreign currencies	​		—	​		34,820		​	​
EMEA ECS sales, constant currency	​	$	1,491,099	​	$	1,277,084		16.8	%

​

​

​

​

​

​

​

​

​	​	​
	​	11

​

​

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Six Months Ended					​ ​ ​	​ ​ ​
​	​ ​ ​	July 4, 2026		​ ​ ​	June 28, 2025		​ ​ ​	% Change
​	​	​	​	​	​	​	​	​	​
Consolidated sales, as reported	​	$	19,465,785	​	$	14,393,964	​	35.2	%
Impact of changes in foreign currencies	​		—	​		366,996	​	​	​
Consolidated sales, constant currency	​	$	19,465,785	​	$	14,760,960	​	31.9	%
​	​	​	​	​	​	​	​	​	​
Global Components sales, as reported	​	$	14,005,960	​	$	10,062,620	​	39.2	%
Impact of changes in foreign currencies	​		—	​		213,545	​	​	​
Global Components sales, constant currency	​	$	14,005,960	​	$	10,276,165	​	36.3	%
​	​	​	​	​	​	​	​	​	​
Americas Components sales, as reported	​	$	4,766,668	​	$	3,276,092	​	45.5	%
Impact of changes in foreign currencies	​		—	​		791	​	​	​
Americas Components sales, constant currency	​	$	4,766,668	​	$	3,276,883	​	45.5	%
​	​	​	​	​	​	​	​	​	​
EMEA Components sales, as reported	​	$	3,703,963	​	$	2,766,945	​	33.9	%
Impact of changes in foreign currencies	​		—	​		188,215	​	​	​
EMEA Components sales, constant currency	​	$	3,703,963	​	$	2,955,160	​	25.3	%
​	​	​	​	​	​	​	​	​	​
Asia Components sales, as reported	​	$	5,535,329	​	$	4,019,583	​	37.7	%
Impact of changes in foreign currencies	​		—	​		24,539	​	​	​
Asia Components sales, constant currency	​	$	5,535,329	​	$	4,044,122	​	36.9	%
​	​	​	​	​	​	​	​	​	​
Global ECS sales, as reported	​	$	5,459,825	​	$	4,331,344	​	26.1	%
Impact of changes in foreign currencies	​		—	​		153,451	​	​	​
Global ECS sales, constant currency	​	$	5,459,825	​	$	4,484,795	​	21.7	%
​	​	​	​	​	​	​	​	​	​
Americas ECS sales, as reported	​	$	2,320,563	​	$	1,962,688	​	18.2	%
Impact of changes in foreign currencies	​		—	​		4,550	​	​	​
Americas ECS sales, constant currency	​	$	2,320,563	​	$	1,967,238	​	18.0	%
​	​	​	​	​	​	​	​	​	​
EMEA ECS sales, as reported	​	$	3,139,262	​	$	2,368,656	​	32.5	%
Impact of changes in foreign currencies	​		—	​		148,901	​	​	​
EMEA ECS sales, constant currency	​	$	3,139,262	​	$	2,517,557	​	24.7	%

​

​

​

​

​

​

​

​

​

​

​

​

​

​	​	​
	​	12

​

​

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

​

1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended July 4, 2026

​

​ ​ ​

Reported

​ ​ ​

Intangible

​ ​ ​

Restructuring,

​ ​ ​

Impact of

​ ​ ​

​

​

​ ​ ​

​

​

​

​

GAAP

​

amortization

​

Integration

​

Wind

​

​

​

​

Non-GAAP

​

​

measure

​

expense

​

and other

​

Down(1)

​

​

Other(2)

​

measure

Operating income

​

$

377,333

​

$

4,753

​

$

24,139

​

$

(2,970)

​

$

—

​

$

403,255

​

Income before income taxes

​

353,146

​

4,753

​

24,139

​

(2,970)

​

(12,044)

​

367,024

​

Provision for income taxes

​

80,311

​

1,162

​

6,752

​

(944)

​

(2,892)

​

84,389

​

Consolidated net income

​

272,835

​

3,591

​

17,387

​

(2,026)

​

(9,152)

​

282,635

​

Noncontrolling interests

​

124

​

—

​

—

​

—

​

—

​

124

​

Net income attributable to shareholders

​

$

272,711

​

$

3,591

​

$

17,387

​

$

(2,026)

​

$

(9,152)

​

$

282,511

​

Net income per diluted share (5)

​

$

5.26

​

$

0.07

​

$

0.34

​

$

(0.04)

​

$

(0.18)

​

$

5.45

​

Effective tax rate (6)

​

22.7

%

​

​

​

​

​

​

​

​

23.0

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 28, 2025

​

​ ​ ​

Reported

​ ​ ​

Intangible

​ ​ ​

Restructuring,

​ ​ ​

Impact of

​ ​ ​

​

​

​ ​ ​

​

​

​

​

GAAP

​

amortization

​

Integration

​

Wind

​

​

​

​

Non-GAAP

​

​

measure

​

expense

​

and other

​

Down(1)

​

​

Other(3)

​

measure

Operating income

​

$

190,586

​

$

4,870

​

$

21,919

​

$

(2,172)

​

$

172

​

$

215,375

​

Income before income taxes

​

232,956

​

4,870

​

21,919

​

(2,172)

​

(103,804)

​

153,769

​

Provision for income taxes

​

45,934

​

1,208

​

5,747

​

(689)

​

(25,119)

​

27,081

​

Consolidated net income

​

187,022

​

3,662

​

16,172

​

(1,483)

​

(78,685)

​

126,688

​

Noncontrolling interests

​

(727)

​

24

​

—

​

—

​

—

​

(703)

​

Net income attributable to shareholders

​

$

187,749

​

$

3,638

​

$

16,172

​

$

(1,483)

​

$

(78,685)

​

$

127,391

​

Net income per diluted share (5)

​

$

3.59

​

$

0.07

​

$

0.31

​

$

(0.03)

​

$

(1.50)

​

$

2.43

​

Effective tax rate (6)

​

19.7

%

​

​

​

​

​

​

​

​

17.6

%

​

​

​

​

​

​

​	​	​
	​	13

​

​

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended July 4, 2026

​

​ ​ ​

Reported

​ ​ ​

Intangible

​ ​ ​

Restructuring,

​ ​ ​

Impact of

​

​

​

​

​

​

​

​

GAAP

​

amortization

​

Integration

​

Wind

​

​

​

​

Non-GAAP

​

measure

expense

and other(4)

​

Down(1)

​

​

Other(2)

​

​

measure

​

Operating income

​

$

738,935

​

$

9,518

​

$

60,803

​

$

(5,218)

​

$

—

​

$

804,038

​

Income before income taxes

​

660,406

​

9,518

​

60,803

​

(5,218)

​

(6,252)

​

719,257

​

Provision for income taxes

​

151,541

​

2,326

​

14,804

​

(1,651)

​

(1,501)

​

165,519

​

Consolidated net income

​

508,865

​

7,192

​

45,999

​

(3,567)

​

(4,751)

​

553,738

​

Noncontrolling interests

​

1,048

​

—

​

—

​

—

​

—

​

1,048

​

Net income attributable to shareholders

​

$

507,817

​

$

7,192

​

$

45,999

​

$

(3,567)

​

$

(4,751)

​

$

552,690

​

Net income per diluted share (5)

​

$

9.81

​

$

0.14

​

$

0.86

​

$

(0.07)

​

$

(0.09)

​

$

10.67

​

Effective tax rate (6)

​

22.9

%

​

​

​

​

​

​

​

​

23.0

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 28, 2025

​

​ ​ ​

Reported

​ ​ ​

Intangible

​ ​ ​

Restructuring,

​ ​ ​

Impact of

​

​

​

​

​

​

​

GAAP

​

amortization

​

Integration

​

Wind

​

​

​

​

Non-GAAP

​

​

measure

​

expense

​

and other

​

Down(1)

​

​

Other(3)

​

​

measure

Operating income

​

$

349,139

​

$

10,230

​

$

39,232

​

$

(4,639)

​

$

172

​

$

394,134

​

Income before income taxes

​

336,165

​

10,230

​

39,232

​

(4,639)

​

(103,944)

​

277,044

​

Provision for income taxes

​

69,279

​

2,524

​

10,098

​

(1,470)

​

(25,152)

​

55,279

​

Consolidated net income

​

266,886

​

7,706

​

29,134

​

(3,169)

​

(78,792)

​

221,765

​

Noncontrolling interests

​

(583)

​

156

​

—

​

—

​

—

​

(427)

​

Net income attributable to shareholders

​

$

267,469

​

$

7,550

​

$

29,134

​

$

(3,169)

​

$

(78,792)

​

$

222,192

​

Net income per diluted share (5)

​

$

5.09

​

$

0.14

​

$

0.55

​

$

(0.06)

​

$

(1.50)

​

$

4.23

​

Effective tax rate (6)

​

20.6

%

​

​

​

​

​

​

​

​

20.0

%

​

​

1

​

​

(1) Includes recoveries of inventory related to the wind down of a business.

(2) Other includes gain on investments, net.

(3) Other includes gain on investments, net, non-recurring tax items, and employee severance and benefits costs not related to restructuring initiative presented in cost of sales.

(4) Includes restructuring, integration, and other charges, and tax adjustments related to the wind down of a business.

(5) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.

(6) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.

​

​

​	​	​
	​	14

​

​

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

Quarter Ended

​ ​ ​

Six Months Ended

​

​ ​ ​

July 4,

​ ​ ​

June 28,

​ ​ ​

July 4,

​ ​ ​

June 28,

​

​ ​ ​

2026

​ ​ ​

2025

​ ​ ​

2026

​ ​ ​

2025

Sales:

​

​

​

​

​

​

​

​

​

​

​

​

Global Components

​

$

7,365,625

​

$

5,284,898

​

$

14,005,960

​

$

10,062,620

Global ECS

​

2,626,612

​

2,295,049

​

5,459,825

​

4,331,344

Consolidated

​

$

9,992,237

​

$

7,579,947

​

$

19,465,785

​

$

14,393,964

Operating income:

​

​

​

​

​

​

​

​

Global Components (a)

​

$

396,275

​

$

186,808

​

$

759,794

​

$

358,193

Global ECS (b)

​

85,375

​

96,969

​

189,113

​

174,283

Segment operating income

​

$

481,650

​

$

283,777

​

$

948,907

​

$

532,476

Corporate operating expenses (c)

​

(104,317)

​

(93,191)

​

(209,972)

​

(183,337)

Consolidated

​

$

377,333

​

$

190,586

​

$

738,935

​

$

349,139

​

(a) Global Components operating income includes $3.0 million and $5.2 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2026, respectively, and $2.2 million and $4.6 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2025.

(b) Global ECS operating income includes $26.6 million and $48.3 million in losses related to the underperformance of certain non-cancellable multi-year purchase obligations during the second quarter and first six months of 2026, respectively.

(c) Corporate unallocated operating expenses includes restructuring, integration, and other charges of $24.1 million and $60.8 million for the second quarter and first six months of 2026, respectively, and $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively.

​

​

​	​	​
	​	15

​

​

ARROW ELECTRONICS, INC.

NON-GAAP SEGMENT RECONCILIATION

(In thousands)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

Quarter Ended

​ ​ ​

Six Months Ended

​

​

​ ​ ​

July 4,

​ ​ ​

June 28,

​ ​ ​

July 4,

​ ​ ​

June 28,

​

​

​ ​ ​

2026

​ ​ ​

2025

​ ​ ​

2026

​ ​ ​

2025

​

Global Components gross profit, as reported

​

$

856,503

​

$

591,454

​

$

1,663,251

​

$

1,146,399

​

Impact of wind down to inventory

​

(2,970)

​

(2,172)

​

(5,218)

​

(4,639)

​

Other

​

​

—

​

​

172

​

​

—

​

​

172

​

Global Components non-GAAP gross profit

​

$

853,533

​

$

589,454

​

$

1,658,033

​

$

1,141,932

​

Global Components gross profit as a percentage of sales, as reported

​

​

11.6

%

​

11.2

%

​

11.9

%

​

11.4

%

Global Components non-GAAP gross profit as a percentage of sales

​

​

11.6

%

​

11.2

%

​

11.8

%

​

11.3

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Global ECS gross profit, as reported

​

$

268,706

​

$

257,203

​

$

552,418

​

$

476,250

​

Global ECS gross profit as a percentage of sales, as reported

​

​

10.2

%

​

11.2

%

​

10.1

%

​

11.0

%

​

​

​

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Quarter Ended					​ ​ ​	Six Months Ended
​	​ ​ ​	July 4,		​ ​ ​	June 28,		​ ​ ​	July 4,		​ ​ ​	June 28,
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025
Global Components operating income, as reported	​	$	396,275	​	$	186,808	​	$	759,794	​	$	358,193	​
Intangible assets amortization expense	​		3,824	​		3,945	​		7,661	​		8,383	​
Impact of wind down to inventory	​	​	(2,970)	​	​	(2,172)	​	​	(5,218)	​	​	(4,639)	​
Other	​		—	​		172	​		—	​		172	​
Global Components non-GAAP operating income	​	$	397,129	​	$	188,753	​	$	762,237	​	$	362,109	​
Global Components operating income as a percentage of sales, as reported	​	​	5.4	%	​	3.5	%	​	5.4	%	​	3.6	%
Global Components non-GAAP operating income as a percentage of sales	​	​	5.4	%	​	3.6	%	​	5.4	%	​	3.6	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Global ECS operating income, as reported	​	$	85,375	​	$	96,969	​	$	189,113	​	$	174,283	​
Intangible assets amortization expense	​		929	​		925	​		1,857	​		1,847	​
Global ECS non-GAAP operating income	​	$	86,304	​	$	97,894	​	$	190,970	​	$	176,130	​
Global ECS operating income as a percentage of sales, as reported	​	​	3.3	%	​	4.2	%	​	3.5	%	​	4.0	%
Global ECS non-GAAP operating income as a percentage of sales	​	​	3.3	%	​	4.3	%	​	3.5	%	​	4.1	%

​

​

14

​

NON-GAAP SEGMENT RECONCILIATIONS

​

​	​	​
	​	16

​

Filing Exhibits & Attachments

7 documents

Press Releases

• EX-99.1 EX-99.1 1.1 MB
• EX-99.2 EX-99.2 11.6 KB

Agreements & Contracts

• EX-10.1 EX-10.1 244.6 KB

Other Documents

• EX-101 EX-101.SCH 3.4 KB
• EX-101 EX-101.DEF 2.8 KB
• EX-101 EX-101.LAB 16.2 KB
• EX-101 EX-101.PRE 10.7 KB