second quarter of 2026
Filed Aug 6, 2026Arrow 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 --
Consolidated sales increased 32% year over year, GAAP diluted EPS increased 47%, and non-GAAP diluted EPS increased 124%. Both Global Components revenue and operating income grew sharply, while the company stated that sales and both GAAP and non-GAAP EPS exceeded the high end of guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated salesGAAP | $9,992 million | – | 32% |
| Net income attributable to shareholdersGAAP | $273 million | – | 45% |
| Net income per diluted shareGAAP | $5.26 | – | 47% |
| Non-GAAP net income attributable to shareholdersnon-GAAP | $283 million | – | 122% |
| Non-GAAP net income per diluted sharenon-GAAP | $5.45 | – | 124% |
| Sales growth on a constant currency basisother | 30% | – | 30% |
| Positive impact of changes in foreign currencies on salesother | $93.5 million | – | – |
| Positive impact of changes in foreign currencies on diluted earnings per shareother | $0.09 | – | – |
| Global Components operating incomeGAAP | $396 million | – | 112% |
| Global Components non-GAAP operating incomenon-GAAP | $397 million | – | 110% |
| Global ECS operating incomeGAAP | $85 million | – | (12)% |
| Global ECS non-GAAP operating incomenon-GAAP | $86 million | – | (12)% |
| Cash flow from operationsGAAP | $318 million | – | – |
| Six months consolidated salesGAAP | $19,466 million | – | 35% |
| Six months net income attributable to shareholdersGAAP | $508 million | – | 90% |
| Six months net income per diluted shareGAAP | $9.81 | – | 93% |
| Six months non-GAAP net income attributable to shareholdersnon-GAAP | $553 million | – | 149% |
| Six months non-GAAP net income per diluted sharenon-GAAP | $10.67 | – | 152% |
| Six months Global Components operating incomeGAAP | $760 million | – | 112% |
| Six months Global Components non-GAAP operating incomenon-GAAP | $762 million | – | 111% |
| Six months Global ECS operating incomeGAAP | $189 million | – | 9% |
| Six months Global ECS non-GAAP operating incomenon-GAAP | $191 million | – | 8% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global ComponentsSales 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. | $7,366 million | – | 39% |
| Global Enterprise Computing Solutions (ECS)Sales increased 13 percent year over year on a constant currency basis, and gross billings increased 14 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. Global ECS second-quarter operating income and non-GAAP operating income decreased 12 percent year over year. | $2,627 million | – | 14% |
Third-Quarter 2026 outlook
- RevenueConsolidated 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
- Tax rateAverage tax rate in the range of 23 percent to 25 percent
- NoteNet income per share on a diluted basis of $4.72 to $4.92
- NoteNon-GAAP net income per share on a diluted basis of $4.83 to $5.03
- NoteInterest expense of approximately $50 million
- NoteChanges 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
- NoteChanges 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
- NoteGlobal Components sales, GAAP: $7.50 - 7.90 billion; 35% - 42% year-over-year change; 2% - 7% quarter-over-quarter change
- NoteGlobal Components sales, constant currency: $7.50 - 7.90 billion; 35% - 42% year-over-year change; 2% - 8% quarter-over-quarter change
- NoteGlobal ECS sales, GAAP: $2.10 - 2.30 billion; (3)% - 7% year-over-year change; (20)% - (12)% quarter-over-quarter change
- NoteGlobal ECS sales, constant currency: $2.10 - 2.30 billion; (2)% - 8% year-over-year change; (19)% - (12)% quarter-over-quarter change
- NoteIntangible amortization expense of $0.07 and restructuring & integration charges of $0.04 in the GAAP to non-GAAP diluted EPS reconciliation
Capital returns
- Arrow repurchased $43 million of shares in the second quarter of 2026.
What drove it
- Consolidated 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.
- Book-to-bill ratios remain well above parity, and backlog continues to build in both size and duration.
- Management cited healthy demand across regions, end markets and customer segments.
- Management cited higher-margin, value-added offerings, a scalable operating model and focused capital allocation strategy.
Concerns
- Global ECS operating income decreased 12 percent year over year to $85 million, while Global ECS non-GAAP operating income decreased 12 percent year over year to $86 million.
- Third-quarter Global ECS sales guidance of $2.10 billion to $2.30 billion implies a stated GAAP year-over-year change range of (3)% to 7% and a stated GAAP quarter-over-quarter change range of (20)% to (12)%.
- Third-quarter foreign-currency changes are expected to decrease sales by approximately $27 million compared to the third quarter of 2025 and decrease quarter-over-quarter growth in sales by $50 million compared to the second quarter of 2026.
- The company identified its search for a permanent CEO as a risk factor.
What to watch
- Whether Global Components sales reach the third-quarter guidance range of $7.50 billion to $7.90 billion.
- Whether Global ECS sales reach the third-quarter guidance range of $2.10 billion to $2.30 billion and whether ECS operating income improves from the second-quarter year-over-year decline.
- The development of book-to-bill ratios and backlog in both size and duration.
- The impact of foreign currencies, which the company expects to decrease third-quarter sales by approximately $27 million compared to the third quarter of 2025.
- Third-quarter GAAP diluted EPS guidance of $4.72 to $4.92 and non-GAAP diluted EPS guidance of $4.83 to $5.03.
Balance sheet and cash flow
- Arrow generated $318 million of cash flow from operations partly due to the timing of cash flows within Global Components supply chain services offerings.
Analysis
Arrow reported second-quarter consolidated sales of $9,992 million, up 32% year over year, with 30% growth on a constant currency basis. GAAP net income attributable to shareholders increased 45% to $273 million and GAAP diluted EPS increased 47% to $5.26. Non-GAAP net income attributable to shareholders increased 122% to $283 million, while non-GAAP diluted EPS increased 124% to $5.45. The company stated that sales, GAAP diluted EPS and non-GAAP diluted EPS were above the high end of guidance.
Global Components was the principal source of growth. Segment sales increased 39% to $7,366 million, while GAAP operating income increased 112% to $396 million and non-GAAP operating income increased 110% to $397 million. Growth was broad across Components regions, with Americas sales up 44%, EMEA sales up 36%, and Asia-Pacific sales up 38%. Management also reported book-to-bill ratios well above parity and backlog building in both size and duration.
Global ECS delivered sales growth but weaker quarterly profitability. Sales increased 14% to $2,627 million and gross billings increased 14%, but GAAP operating income declined 12% to $85 million and non-GAAP operating income declined 12% to $86 million. EMEA ECS sales increased 20%, compared with 8% growth in Americas ECS sales. This divergence between sales growth and operating-income performance is the key operating issue in the release.
Arrow generated $318 million of cash flow from operations, partly due to the timing of cash flows within Global Components supply chain services offerings, and repurchased $43 million of shares. The filing does not report free cash flow, cash balances, debt balances, dividends, or detailed working-capital movements.
For the third quarter of 2026, Arrow guided consolidated sales to $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. The company guided GAAP diluted EPS to $4.72 to $4.92 and non-GAAP diluted EPS to $4.83 to $5.03. The stated sales outlook calls for continued Global Components expansion, while the stated Global ECS GAAP sales growth range is (3)% to 7% year over year and the stated quarter-over-quarter range is (20)% to (12)%.
Management, verbatim
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.
Bill Austen, 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.
Bill Austen, interim president and chief executive officer
Not in the filing
stated, not guessed- Previous-quarter figures for second-quarter consolidated sales, net income, EPS, segment sales, and segment operating income
- Consolidated gross profit and gross margin
- Consolidated operating income and operating margin
- Segment gross profit and gross margin
- Free cash flow
- Cash and cash equivalents
- Total debt and net debt
- Dividend information
- Detailed share count information
- Detailed capital expenditure information
- Prior-quarter outlook for comparison with reported second-quarter results
AlphaAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.