Earnings release
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ARROW ELECTRONICS , INC . 9151 EAST PANORAMA CIRCLE CENTENNIAL , CO 80112 303-824-4000 NEWS 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 . " Arrow Consolidated July 4 , ( in millions except per share data ) Consolidated sales 2026 Quarter Ended June 28 , 2025 Change July 4 , 2026 Six Months Ended June 28 , 2025 Change $ 9,992 $ 7,580 32 % $ 19,466 $ 14,394 35 % Net income attributable to shareholders 273 188 45 % 508 267 90 % Net income per diluted share 5.26 3.59 47 % 9.81 5.09 93 % Non - GAAP net income attributable to shareholders ( 1 ) 283 127 122 % 553 222 149 % Non - GAAP net income per diluted share ( 1 ) 5.45 2.43 124 % 10.67 4.23 152 % 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 . Global Components July 4 , ( in millions ) 2026 Quarter Ended June 28 , 2025 Change Global Components sales $ 7,366 $ 5,285 Global Components operating income Global Components non - GAAP operating income ( 1 ) 396 187 39 % 112 % July 4 , 2026 $ 14,006 $ 10,063 760 358 Six Months Ended June 28 , 2025 Change 39 % 112 % 397 189 110 % 762 362 111 % 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 . WOW
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2 ARROW ELECTRONICS, INC. 9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000 NEWS Global Enterprise Computing Solutions ("ECS") Quarter Ended Six Months Ended July 4, June 28, July 4, June 28, (in millions) 2026 2025 Change 2026 2025 Change Global ECS sales $ 2,627 $ 2,295 14% $ 5,460 $ 4,331 26% Global ECS operating income 85 97 (12)% 189 174 9% Global ECS non-GAAP operating income (1) 86 98 (12)% 191 176 8% 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. 1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
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3 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 Third-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended October 3, September 27, October 3, July 4, (in billions) 2026 2025 % Change 2026 2026 % Change Global Components sales, GAAP$$7.50 - 7.90$ 5.56 35% - 42%$$7.50 - 7.90$ 7.37 2% - 7% Impact of changes in foreign currencies — (0.01) — (0.03) 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
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4 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
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5 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
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6 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
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7 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
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8 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
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9 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
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10 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
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11 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%
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12 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%
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13 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%
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14 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.
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15 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 businessfor the second quarter and first six months of 2026, respectively, and $2.2 million and $4.6 million in inventory recoveries related to the winddown 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-cancellablemulti-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 thesecond quarter and first six months of 2026, respectively, and $21.9 million and $39.2 million for the second quarter and first six months of2025, respectively.
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16 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