Arrow Electronics Reports Record Quarterly Revenue and EPS
ARROW ELECTRONICS, INC. (ARW) filed an SEC Form 8-K — Results of Operations and Financial Condition. ARROW ELECTRONICS, INC. 9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000 NEWS Exhibit 99.1 Arrow Electronics Reports Record Quarterly Revenue and EPS --Total Revenue of $10.7 billion, up 39% Year-over-Year, Above High End of Guidance-- -- Diluted EPS of $
How this was made
The 30-second read
Why it matters
The earnings beat and issued outlook are likely to attract buying interest and could lift related distribution stocks.
Market read
The release provides fresh, material earnings data for a large‑cap tech distributor, making it a high‑value trading event.
What to watch
Potential headwinds from foreign‑currency impacts and future macro slowdown could temper growth.
Arrow Electronics Reports Record Quarterly Revenue and EPS --Total Revenue of $10.7 billion, up 39% Year-over-Year, Above High End of Guidance-- -- Diluted EPS of $6.17 and Non-GAAP Diluted EPS of $6.22, Both Above High End of Guidance --
Third-quarter consolidated sales increased 39% year over year to $10,718 million, while GAAP diluted EPS increased 196% to $6.17 and non-GAAP diluted EPS increased 158% to $6.22. Both operating segments grew, Global Components operating income more than doubled, and fourth-quarter sales and EPS guidance calls for further growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 consolidated salesGAAP | $10.72B | – | 39 % |
| Q3 2026 consolidated sales, constant currencynon-GAAP | $10.72B | – | 39.2 % |
| Q3 2026 gross profitGAAP | $1.16B | – | – |
| Q3 2026 selling, general, and administrative expenseGAAP | $688.2M | – | – |
| Q3 2026 depreciation and amortizationGAAP | $35.87M | – | – |
| Q3 2026 restructuring, integration, and otherGAAP | $5.03M | – | – |
| Q3 2026 operating incomeGAAP | $430.3M | – | – |
| Q3 2026 non-GAAP operating incomenon-GAAP | $436.1M | – | – |
| Q3 2026 income before income taxesGAAP | $393.7M | – | – |
| Q3 2026 provision for income taxesGAAP | $75.17M | – | – |
| Q3 2026 effective tax rateGAAP | 19.1 % | – | – |
| Q3 2026 non-GAAP effective tax ratenon-GAAP | 19.0 % | – | – |
| Q3 2026 consolidated net incomeGAAP | $318.5M | – | – |
| Q3 2026 net income attributable to shareholdersGAAP | $318M | – | 192 % |
| Q3 2026 non-GAAP net income attributable to shareholdersnon-GAAP | $321M | – | 155 % |
| Q3 2026 diluted EPSGAAP | $ 6.17 | – | 196 % |
| Q3 2026 non-GAAP diluted EPSnon-GAAP | $ 6.22 | – | 158 % |
| Q3 2026 net cash used for operating activitiesGAAP | −$441.4M | – | – |
| Q3 2026 acquisition of property, plant, and equipmentGAAP | −$26.88M | – | – |
| Q3 2026 repurchases of common stockGAAP | −$99.31M | – | – |
| Nine months ended October 3, 2026 consolidated salesGAAP | $30.18B | – | 37 % |
| Nine months ended October 3, 2026 operating incomeGAAP | $1.17B | – | – |
| Nine months ended October 3, 2026 net income attributable to shareholdersGAAP | $826M | – | 119 % |
| Nine months ended October 3, 2026 non-GAAP net income attributable to shareholdersnon-GAAP | $874M | – | 151 % |
| Nine months ended October 3, 2026 diluted EPSGAAP | $ 15.97 | – | 122 % |
| Nine months ended October 3, 2026 non-GAAP diluted EPSnon-GAAP | $ 16.89 | – | 154 % |
| Nine months ended October 3, 2026 net cash provided by operating activitiesGAAP | $576.7M | – | – |
| Nine months ended October 3, 2026 acquisition of property, plant, and equipmentGAAP | −$80.12M | – | – |
| Nine months ended October 3, 2026 repurchases of common stockGAAP | −$174.5M | – | – |
| Q3 2026 Global ECS gross billingsother | $5.94B | – | 14 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global ComponentsSales increased 43 percent year over year on both an actual and constant currency basis. Americas Components sales increased 58 percent, EMEA Components sales increased 41 percent, and Asia-Pacific Components sales increased 33 percent year over year. | $7.94B | – | 43 % |
| Global Enterprise Computing Solutions (ECS)Sales increased 29 percent year over year and increased 30 percent year over year on a constant currency basis. Gross billings increased 14 percent year over year, while operating income increased 54 percent and non-GAAP operating income increased 53 percent year over year. | $2.77B | – | 29 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth-Quarter 2026 outlook
- RevenueConsolidated sales of $11.55 billion to $12.15 billion, with Global Components sales of $8.15 billion to $8.55 billion, and Global ECS sales of $3.40 billion to $3.60 billion
- Tax rateAverage tax rate in the range of 23 percent to 25 percent
- NoteNet income per share on a diluted basis of $6.25 to $6.45
- NoteNon-GAAP net income per share on a diluted basis of $7.00 to $7.20
- NoteInterest expense of approximately $50 million
- NoteChanges in foreign currencies to decrease sales by approximately $88 million, and earnings per share on a diluted basis by $0.14 compared to the fourth quarter of 2025
- NoteChanges in foreign currencies to decrease quarter-over-quarter growth in sales by $86 million, and earnings per share on a diluted basis to decrease by $0.07 compared to the third quarter of 2026
- NoteGlobal Components sales, GAAP: $ 8.15 - 8.55; 39% - 45% change versus December 31, 2025 and 3% - 8% change versus October 3, 2026
- NoteGlobal ECS sales, GAAP: $ 3.40 - 3.60; 19% - 26% change versus December 31, 2025 and 23% - 30% change versus October 3, 2026
Capital returns
- The company repurchased $93 million of shares during the third quarter.
- Repurchases of common stock were $ (99,306) in the quarter ended October 3, 2026.
- Repurchases of common stock were $ (174,453) in the nine months ended October 3, 2026.
What drove it
- Global Components benefited from broad-based demand across geographies, customer segments and industry verticals, with a growing backlog and book-to-bill ratios well above parity.
- Global ECS experienced robust demand as customers invested in AI, cloud, cybersecurity and hybrid infrastructure solutions.
- Foreign currencies had a negative impact of $10.3 million on Q3 sales and a positive impact of $0.02 on diluted EPS compared to the third quarter of 2025.
- Global Components Q3 operating income was $ 413 million, up 109 %, and non-GAAP operating income was $ 413 million, up 107 %.
- Global ECS Q3 operating income was $ 98 million, up 54 %, and non-GAAP operating income was $ 99 million, up 53 %.
Concerns
- Q3 net cash used for operating activities was $ (441,409), driven primarily by working capital investments to support customer demand.
- Q3 accounts receivable, net change was $ (5,294,432) and inventories change was $ (1,375,531) in the cash flow statement.
- Global ECS operating income included costs related to underperformance of certain non-cancellable multi-year purchase obligations of $3.8 million in the third quarter and $52.1 million for the first nine months of 2026.
- Fourth-quarter 2026 foreign-currency changes are expected to decrease sales by approximately $88 million and diluted EPS by $0.14 compared to the fourth quarter of 2025.
What to watch
- Whether Global Components backlog and book-to-bill ratios remain well above parity.
- Execution against fourth-quarter consolidated sales guidance of $11.55 billion to $12.15 billion.
- Global ECS demand linked to AI, cloud, cybersecurity and hybrid infrastructure solutions.
- Working-capital investment, particularly accounts receivable and inventories, and resulting operating cash flow.
- The impact of foreign currencies, expected to decrease fourth-quarter sales by approximately $88 million versus the fourth quarter of 2025.
Balance sheet and cash flow
- Cash and cash equivalents were $ 215,607 at October 3, 2026, versus $ 306,467 at December 31, 2025.
- Short-term borrowings, including current portion of long-term debt, were $ 110,497 at October 3, 2026, versus $ 341 at December 31, 2025.
- Long-term debt was $ 2,641,483 at October 3, 2026, versus $ 3,084,715 at December 31, 2025.
- Accounts receivable, net were $ 33,259,191 at October 3, 2026, versus $ 19,738,666 at December 31, 2025.
- Inventories were $ 7,305,982 at October 3, 2026, versus $ 5,081,863 at December 31, 2025.
- Q3 2026 net cash used for operating activities was $ (441,409), primarily due to working capital investments to support customer demand.
- Nine-month 2026 net cash provided by operating activities was $ 576,692.
- Q3 2026 net decrease in cash and cash equivalents was $ (29,024).
Analysis
Arrow reported record third-quarter revenue and EPS. Consolidated sales were $10,718 million, up 39 %, while GAAP operating income was $430,257 versus $179,007 and GAAP diluted EPS was $6.17 versus $2.09. Non-GAAP diluted EPS was $6.22 versus $2.41. The release states that revenue and both EPS measures were above the high end of guidance, although the prior outlook itself was not provided for comparison.
Both segments contributed to the growth. Global Components sales reached $7,943 million, up 43 %, and segment operating income increased 109 % to $413 million. Management cited broad-based demand, a growing backlog and book-to-bill ratios well above parity. Global ECS sales rose 29 % to $2,775 million, gross billings increased 14 %, and operating income rose 54 % to $98 million. Management attributed ECS demand to customer investments in AI, cloud, cybersecurity and hybrid infrastructure.
Profitability expanded in the reported segment measures. Global Components operating income as a percentage of sales was 5.2 % versus 3.6 %, and Global ECS operating income as a percentage of sales was 3.5 % versus 3.0 %. Consolidated operating income included $5,034 of restructuring, integration, and other expense, compared with $35,648 in the prior-year quarter. The GAAP effective tax rate was 19.1 %, compared with 15.2 % in the prior-year quarter.
Cash conversion was the principal offset to the earnings strength. Arrow used $441 million of cash flow from operations during the quarter, primarily due to working-capital investments supporting customer demand. The cash flow statement shows increases in accounts receivable and inventories, while cash and cash equivalents ended at $215,607. The company repurchased $93 million of shares during the quarter, while the cash flow statement reports repurchases of common stock of $ (99,306).
Fourth-quarter guidance calls for consolidated sales of $11.55 billion to $12.15 billion, including $8.15 billion to $8.55 billion for Global Components and $3.40 billion to $3.60 billion for Global ECS. Guided GAAP diluted EPS is $6.25 to $6.45 and non-GAAP diluted EPS is $7.00 to $7.20. The outlook embeds expected foreign-currency headwinds of approximately $88 million to sales and $0.14 to diluted EPS versus the fourth quarter of 2025.
Management, verbatim
Arrow delivered record quarterly revenue and EPS in the third quarter, with strong momentum across both our Global Components and Global Enterprise Computing Solutions businesses, demonstrating the power of our diversified business model.
Bill Austen, interim chief executive officer
Global Components continues to benefit from broad-based demand across geographies, customer segments and industry verticals, with a growing backlog and book-to-bill ratios well above parity. Global Enterprise Computing Solutions also experienced robust demand as customers continue to modernize their technology environments through investments in AI, cloud, cybersecurity and hybrid infrastructure solutions.
Bill Austen, interim chief executive officer
Not in the filing
stated, not guessed- Prior-quarter figures for reported Q3 financial metrics
- Prior-quarter guidance, which was not provided
- Free cash flow
- Dividend declaration or payment
- Consolidated gross margin
- Fourth-quarter gross-margin guidance
- Fourth-quarter operating-expense guidance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Arrow Electronics reported its Q3 2026 earnings via an SEC Form 8‑K, highlighting record revenue and earnings per share.
Ticker impact
Arrow Electronics disclosed record Q3 2026 revenue of $10.7 bn and EPS of $6.17, both above the high end of its guidance.
likely upward pressure as investors price in the record results and issued outlook.
The company beat prior guidance and provided an optimistic FY outlook, which typically drives buying interest.
Market effects
Positive signal for the electronic components and enterprise computing distribution sector.
Boosts sentiment for U.S. technology distributors.
May lift peers in the global components supply chain.
Counterpoint
If the market has already priced in the strong results, a pull‑back could occur on short‑term profit taking.
Key entities
- companyArrow Electronics
U.S. distributor of electronic components and enterprise computing solutions.
