Results
Arrow Electronics Reports Strong Second-Quarter 2026 Results
3--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 --
Management commentary
“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.”
Results
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.
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.
4Americas Components second-quarter sales increased 44 percent year over year.
7EMEA Components second-quarter sales increased 36 percent year over year and increased 32 percent year over year on a constant currency basis.
8Asia-Pacific Components second-quarter sales increased 38 percent year over year and increased 37 percent year over year on a constant currency basis.
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.
2Global 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.
6Americas ECS second-quarter sales increased 8 percent year over year.
Capital return
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.
Outlook
Third-Quarter 2026 Outlook
C onsolidated 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
5Changes 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
1Changes 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 2026Guidance lowered
Earnings Presentation
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