Slides
Page 1
Earnings Presentation Arrow Electronics Third Quarter 2026 November 5, 2026 William Austen, Interim CEO Raj Agrawal, Senior Vice President and CFO
Page 2
2 Safe Harbor This presentation 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 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; management transitions; 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 artificial intelligence, environmental, social, governance, cybersecurity, and data privacy issues; changes in relationships with key suppliers; 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 Arrow’s most recent Annual Report on Form 10-K, as well as in other filings the company makes with the SEC. Shareholders and other readers are cautioned 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.
Page 3
Q3 2026 Highlights • Record quarterly revenue and EPS • Leading indicators continue to improve • Strong operational momentum • Additional Q3 2026 financial information: • $436 million operating income1 • $321 million net income1 • 22.6% return on working capital1 • 15.1% return on invested capital1 CONSOLIDATED SALES $10.7 Billion OPERATING MARGIN1 4. 1 Percent DILUTED EARNINGS PER SHARE1 $6.22 1. Figures are Non-GAAP. See reconciliation to comparable GAAP figures in the tables at the end of this presentation 3 Up 39% Y /Y Up 158% Y /YUp 130 bps Y /Y
Page 4
Why Arrow 4 As the premier distributor of technology solutions, we guide innovation forward Strong Position in Large and Growing Markets • Superior product distribution execution in the $250B+ “indirect” DTAM1,2 • Expanding addressable market through increased mix shift toward value- added offerings Differentiated Capabilities Driving Profitable Growth • Extending foundational product distribution capabilities into adjacent, higher-margin value-added services • Increased productivity through simplifying operations Diversified Business Model Provides Financial Flexibility • Combination of Global Components and ECS is a strategic advantage • Strong balance sheet • Consistent free cash flow generation Focused Capital Allocation Strategy • Reinvest in organic growth • Strategic M&A • Return excess capital to shareholders • Maintain investment-grade credit rating 1 Source: IDC, OMDIA, and Arrow analysis. 2 DTAM: Distribution Total Addressable Market
Page 5
Overview • Strong operational execution across the business • Expand the mix of higher-value solutions and services • Deliver high-quality, profitable growth • Drive positive operating leverage • Generate durable long-term shareholder returns 5
Page 6
$2.41 $5.45 $6.22 52 52 52 Q3 '25 Q2 '26 Q3 '26 EPS Shares Outstanding $217 $403 $436 2.8% 4.0% 4.1% Q3 '25 Q2 '26 Q3 '26 Operating Income Operating Margin (%) $616 $719 $719 73.9% 64.1% 62.3% Q3 '25 Q2 '26 Q3 '26 OPEX % of Gross Profit $7,713 $9,992 $10,718 10.8% 11.2% 10.8% Q3 '25 Q2 '26 Q3 '26 Non-GAAP Operating Expenses1Sales & Non-GAAP Gross Margin1 Q3 2026 Financial Metrics 1 See reconciliation to comparable GAAP figures in the tables at the end of this presentation 6 Non-GAAP Diluted EPS1Non-GAAP Operating Income1 Interest and other expense, net in Q3‘26 was $40 million Non-GAAP Effective Tax Rate was 19.0%1 ECS Global Components Gross Margin (%) $ in millions except for EPS
Page 7
$199 $397 $413 3.6% 5.4% 5.2% Q3 '25 Q2 '26 Q3 '26 Operating Income Operating Margin (%) $5,556 $7,366 $7,943 10.9% 11.6% 11.0% Q3 '25 Q2 '26 Q3 '26 Asia PacificAmericas Non-GAAP Operating Income1 Q3 2026 Global Components 1 See reconciliation to comparable GAAP figures in the tables at the end of this presentation 7 • Broad based growth across region, vertical, and customer type: • Book-to-bill well above parity in all regions • Lead times below shortage environment • Backlog providing improved visibility • On a regional basis: • Americas – broad-based strength led by aerospace & defense, industrial, transportation, and computing • EMEA – strength in aerospace & defense and networking • APAC – led by industrial, networking, and transportation • Quality of growth continues to improve: • Core markets expanding, particularly in the West • Mass market improving with expected runway left • IP&E sales > $1 billion for third consecutive quarter • Value-added services delivering meaningful profit contribution • Operational productivity driving leverage in P&L • Sustained unit volume demand combined with limited capacity driving increasing price benefit Sales & Non-GAAP Gross Margin1 EMEA Gross Margin (%) $ in millions
Page 8
$65 $86 $99 3.0% 3.3% 3.6% Q3 '25 Q2 '26 Q3 '26 Operating Income Operating Margin (%) $2,156 $2,627 $2,775 10.5% 10.2% 10.1% Q3 '25 Q2 '26 Q3 '26 Non-GAAP Operating Income1Sales & Non-GAAP Gross Margin1 Q3 2026 Enterprise Computing Solutions 1 See reconciliation to comparable GAAP figures in the tables at the end of this presentation 8 • Strong execution of backlog conversion • Actions taken to realign beyond distribution business with strategic objectives • AI-investment and broader infrastructure modernization driving strong demand for on-premise and hybrid environments • Critical role in technology ecosystem • Secular demand trends driving strength across technology categories: • Compute • Business applications • Storage • Security • Cloud & hybrid cloud AmericasEMEA Gross Margin (%) $ in millions
Page 9
185 255 282 63 61 70 174 272 274 73 45 78 Q3 '25 Q2 '26 Q3 '26 Cash Conversion (Days) Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding Cash Conversion Cycle 15.7 28.0 33.3 4.7 5.9 7.3 13.1 27.1 32.9 7.3 6.8 7.7 Q3 '25 Q2 '26 Q3 '26 Net Working Capital ($B) Accounts Receivable Inventory Accounts Payable Net Working Capital Q3 2026 Balance Sheet and Cash Highlights • Non-GAAP Return on Working Capital (ROWC)1 of 22.6% in the third quarter, rose 1060 basis points year on year. The increase in ROWC related primarily to higher operating income in Global Components. • Non-GAAP Return on Invested Capital (ROIC)1 of 15.1% in the third quarter, rose 780 basis points year on year. The increase in ROIC related primarily to higher operating income in Global Components. • Operating Cashflow was ($441M) • Gross Debt was $2.8B • Adjusted Net Leverage1 1.9x • Repurchased $93M in shares 1See reconciliation to comparable GAAP figures in the tables at the end of this presentation Amounts may not calculate precisely due to rounding Inventory Turns: 5.8 6.0 5.2 9
Page 10
Consolidated Sales $11.55 billion to $12.15 billion Global Components $8. 15 billion to $8.55 billion Global ECS $3.40 billion to $3.60 billion Diluted Earnings Per Share $6.25 to $6.45 Non-GAAP Diluted Earnings Per Share 1 $7 .00 to $7 .20 Interest and other expense, net Approximately $50 million Q4 2026 Guidance • Changes 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 • Changes 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 * Assumes an average tax rate in the range of 23% to 25%. 1. See reconciliation to comparable GAAP figures in the tables at the end of this presentation 10
Page 11
Looking Forward • Strong execution driving operational momentum • Encouraging leading indicators • Expanding higher margin value-added services • Driving sustainable profitable growth • Improving profitability • Diversified business model • Focused capital allocation • Positioned to deliver long-term shareholder value 11
Page 12
Thank Y ou Q&A 12
Page 13
Additional information and financial tables 13
Page 14
P&L Highlights* Q3 2026 Q3 2025 Y/Y CHANGE Q3 2025 IN CONSTANT CURRENCY Y/Y CHANGE IN CONSTANT CURRENCY Q2 2026 Q/Q CHANGE Sales $10,718 $7,713 39.0% $7,702 39.2% $9,992 7.3% Gross Profit Margin 10.8% 10.8% 0 bps 10.8% 0 bps 11.3% -50 bps Operating Income $430 $179 140.4% $180 139.5% $377 14.0% Operating Margin 4.0% 2.3% 170 bps 2.3% 170 bps 3.8% 20 bps Non-GAAP Operating Income $436 $217 100.6% $218 100.1% $403 8.1% Non-GAAP Operating Margin 4.1% 2.8% 130 bps 2.8% 130 bps 4.0% 10 bps Net Income $318 $109 191.6% $110 188.9% $273 16.7% Diluted EPS $6.17 $2.09 195.2% $2.11 192.4% $5.26 17.3% Non-GAAP Net Income $321 $126 155.3% $127 153.6% $283 13.6% Non-GAAP Diluted EPS $6.22 $2.41 158.1% $2.43 156.0% $5.45 14.1% Q3 2026 Q3 2025 Y/Y CHANGE Q3 2025 IN CONSTANT CURRENCY Y/Y CHANGE IN CONSTANT CURRENCY Q2 2026 Q/Q CHANGE Operating expenses $729 $656 11.1% $655 11.4% $748 -2.5% Operating expenses margin 6.8% 8.5% -170 bps 8.5% -170 bps 7.5% -70 bps Non-GAAP Operating expenses $719 $616 16.8% $615 17.0% $719 0.0% Non-GAAP Operating expenses margin 6.7% 8.0% -130 bps 8.0% -130 bps 7.2% -50 bps Consolidated third-quarter overview 14 ($ in millions, except per share data)
Page 15
Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 YoY change QoQ change Global Components Total 5,556 5,882 6,640 7,366 7,943 43% 8% Americas 1,709 1,960 2,312 2,455 2,703 58% 10% Europe, Middle East & Africa 1,444 1,460 1,765 1,939 2,037 41% 5% Asia Pacific 2,404 2,462 2,563 2,972 3,202 33% 8% Enterprise Computing Solutions Total 2,156 2,864 2,833 2,627 2,775 29% 6% Europe, Middle East & Africa 1,134 1,618 1,648 1,491 1,474 30% -1% Americas 1,022 1,246 1,185 1,136 1,301 27% 15% Arrow Electronics Total 7,713 8,746 9,474 9,992 10,718 39% 7% Revenue history 15 ($ in millions, may reflect rounding)
Page 16
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) 16See the reconciliation to comparable GAAP figures in the tables at the end of this presentation $197 $219 $364 $396 $413 $199 $219 $365 $397 $413 Q3-'25 Q4-'25 Q1-'26 Q2-'26 Q3-'26 GAAP Non-GAAP $64 $188 $104 $85 $98 $65 $189 $105 $86 $99 Q3-'25 Q4-'25 Q1-'26 Q2-'26 Q3-'26 GAAP Non-GAAP
Page 17
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 relating to sales, gross profit, operating income (including by business segment), operating margin, operating expense, consolidated net income, noncontrolling interest, provision for income tax, income before income taxes, net income attributable to shareholders, effective tax rate, net income per share on a diluted basis, return on working capital, and return on invested capital. These non-GAAP measures are adjusted by certain of the following, as applicable: the 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 charges, net gains and losses on investments, and the impact of wind down to inventory. 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. For a complete reconciliation between our GAAP and non-GAAP results, please refer to reconciliations found at the end of this document. 17
Page 18
NON-GAAP SALES RECONCILIATION REPORTED GAAP MEASURE INTANGIBLE AMORTIZATION RESTRUCTURING & INTEGRATION NON-GAAP MEASURE EXPENSE CHARGES Net income per diluted share $3.91 to $4.11 $0.07 $0.34 $4.32 to $4.52 NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 4-Jul-26 28-Jun-25 % Change 4-Jul-26 4-Apr-26 % Change Global components sales, GAAP $ 6.80 - 7.20 $ 5.28 29% - 36% $ 6.80 - 7.20 $ 6.64 2% - 8% Impact of changes in foreign currencies — 0.07 — 0.01 Global components sales, constant currency $ 6.80 - 7.20 $ 5.35 27% - 34% $ 6.80 - 7.20 $ 6.65 2% - 8% Global ECS sales, GAAP $ 2.35 - 2.55 $ 2.30 2% - 11% $ 2.35 - 2.55 $ 2.83 (17)% - (10)% Impact of changes in foreign currencies — 0.05 — 0.01 Global ECS sales, constant currency $ 2.35 - 2.55 $ 2.35 0% - 9% $ 2.35 - 2.55 $ 2.84 (17)% - (10)% Fourth-quarter 2026 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) 18 NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 31-Dec-26 31-Dec-25 % Change 31-Dec-26 3-Oct-26 % Change Global components sales, GAAP $ 8.15 - 8.55 $ 5.88 39% - 45% $ 8.15 - 8.55 $ 7.94 3% - 8% Impact of changes in foreign currencies — (0.02) — (0.04) Global components sales, constant currency $ 8.15 - 8.55 $ 5.86 39% - 46% $ 8.15 - 8.55 $ 7.90 3% - 8% Global ECS sales, GAAP $ 3.40 - 3.60 $ 2.86 19% - 26% $ 3.40 - 3.60 $ 2.78 23% - 30% Impact of changes in foreign currencies — (0.06) — (0.04) Global ECS sales, constant currency $ 3.40 - 3.60 $ 2.80 21% - 29% $ 3.40 - 3.60 $ 2.74 24% - 31% NON-GAAP EARNINGS RECONCILIATION REPORTED GAAP MEASURE INTANGIBLE AMORTIZATION RESTRUCTURING & INTEGRATION NON-GAAP MEASURE EXPENSE CHARGES Net income per diluted share $6.25 to $6.45 $0.07 $0.68 $7.00 to $7.20
Page 19
Quarter Ended 3-Oct-26 27-Sep-25 % Change Consolidated sales, as reported $ 10,717,739 $ 7,712,541 39.0 % Impact of changes in foreign currencies - (10,324) Consolidated sales, constant currency $ 10,717,739 $ 7,702,217 39.2 % Global components sales, as reported $ 7,942,592 $ 5,556,392 42.9 % Impact of changes in foreign currencies - 4,146 Global components sales, constant currency $ 7,942,592 $ 5,560,538 42.8 % Americas components sales, as reported $ 2,703,157 $ 1,708,840 58.2 % Impact of changes in foreign currencies - 114 Americas components sales, constant currency $ 2,703,157 $ 1,708,954 58.2 % EMEA components sales, as reported $ 2,036,976 $ 1,443,607 41.1 % Impact of changes in foreign currencies - (12,050) EMEA components sales, constant currency $ 2,036,976 $ 1,431,557 42.3 % Asia components sales, as reported $ 3,202,459 $ 2,403,945 33.2 % Impact of changes in foreign currencies - 16,082 Asia components sales, constant currency $ 3,202,459 $ 2,420,027 32.3 % Global ECS sales, as reported $ 2,775,147 $ 2,156,149 28.7 % Impact of changes in foreign currencies - (14,470) Global ECS sales, constant currency $ 2,775,147 $ 2,141,679 29.6 % Americas ECS sales, as reported $ 1,300,944 $ 1,021,950 27.3 % Impact of changes in foreign currencies - (1,104) Americas ECS sales, constant currency $ 1,300,944 $ 1,020,846 27.4 % EMEA ECS sales, as reported $ 1,474,203 $ 1,134,199 30.0 % Impact of changes in foreign currencies - (13,366) EMEA ECS sales, constant currency $ 1,474,203 $ 1,120,833 31.5 % Non-GAAP third-quarter sales reconciliation 19 ($ in thousands)
Page 20
Three months ended July 4, 2026 Reported GAAP measure Intangible Amortization Expense Restructuring & Integration charges Impact of Wind Down (1) Other (2) Non-GAAP 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 (4) $ 5.26 $ 0.07 $ 0.34 $ (0.04) $ (0.18) $ 5.45 Effective tax rate (5) 22.7% 23.0% Three months ended June 28, 2025 Reported GAAP measure Intangible Amortization Expense Restructuring & Integration charges Impact of Wind Down (1) Other (3) Non-GAAP 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 (4) $ 3.59 $ 0.07 $ 0.31 $ (0.03) $ (1.50) $ 2.43 Effective tax rate (5) 19.7% 17.6% Three months ended April 4, 2026 Reported GAAP measure Intangible Amortization Expense Restructuring & Integration charges Impact of Wind Down (1) Other (2) Non-GAAP measure Operating income $ 361,602 $ 4,765 $ 36,664 $ (2,248) $ - $ 400,783 Income before income taxes 307,260 4,765 36,664 (2,248) 5,792 352,233 Provision for income taxes 71,230 1,164 8,052 (707) 1,391 81,130 Consolidated net income 236,030 3,601 28,612 (1,541) 4,401 271,103 Noncontrolling interests 924 - - - - 924 Net income attributable to shareholders $ 235,106 $ 3,601 $ 28,612 $ (1,541) $ 4,401 $ 270,179 Net income per diluted share (4) $ 4.55 $ 0.07 $ 0.55 $ (0.03) $ 0.09 $ 5.22 Effective tax rate (5) 23.2% 23.0% Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) (1) Includes recoveries of inventory related to the wind down of businesses. (2) Other includes gain on investments, net. (3) Includes impacts from tax settlements related to U.S. federal tax law changes enacted as part of the 2017 Tax Cuts and Jobs Act. (4) The sum of the components for non- GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding. (5) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non -GAAP measure. 20 Three months ended October 3, 2026 Reported GAAP measure Intangible Amortization Expense Restructuring & Integration charges Impact of Wind Down (1) Non-Recurring Tax Items Other (2) Non-GAAP measure Operating income $ 430,257 $ 4,745 $ 5,034 $ (3,939) $ - $ - $ 436,097 Income before income taxes 393,706 4,745 5,034 (3,939) - (2,893) 396,653 Provision for income taxes 75,175 1,160 1,083 (1,246) - (695) 75,477 Consolidated net income 318,531 3,585 3,951 (2,693) - (2,198) 321,176 Net income attributable to shareholders $ 318,375 $ 3,585 $ 3,951 $ (2,693) $ - $ (2,198) $ 321,020 Net income per diluted share (4) $ 6.17 $ 0.07 $ 0.08 $ (0.05) $ - $ (0.04) $ 6.22 Effective tax rate (5) 19.1% 19.0% Three months ended September 27, 2025 Reported GAAP measure Intangible Amortization Expense Restructuring & Integration charges Impact of Wind Down (1) Non-Recurring Tax Items (3) Other (2) Non-GAAP measure Operating income $ 179,007 $ 4,766 $ 35,648 $ (1,989) $ - $ - $ 217,432 Income before income taxes 128,790 4,766 35,648 (1,989) - (4,859) 162,356 Provision for income taxes 19,528 1,162 9,302 (629) 8,359 (1,166) 36,556 Consolidated net income 109,262 3,604 26,346 (1,360) (8,359) (3,693) 125,800 Net income attributable to shareholders $ 109,193 $ 3,604 $ 26,346 $ (1,360) $ (8,359) $ (3,693) $ 125,731 Net income per diluted share (4) $ 2.09 $ 0.07 $ 0.51 $ (0.03) $ (0.16) $ (0.07) $ 2.41 Effective tax rate (5) 15.2% 22.5% Three months ended July 4, 2026 Reported GAAP measure Intangible Amortization Expense Restructuring & Integration charges Impact of Wind Down (1) Non-Recurring Tax Items (3) Other (2) Non-GAAP 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 Net income attributable to shareholders $ 272,711 $ 3,591 $ 17,387 $ (2,026) $ - $ (9,152) $ 282,511 Net income per diluted share (4) $ 5.26 $ 0.07 $ 0.34 $ (0.04) $ - $ (0.18) $ 5.45 Effective tax rate (5) 22.7% 23.0%
Page 21
9/27/2025 12/31/2025 4/4/2026 7/4/2026 10/3/2026 Consolidated Gross Profit $ 835,314 $ 1,008,756 $ 1,090,460 $ 1,125,209 $ 1,159,332 Impact of wind down to inventory (1,989) (3,638) (2,248) (2,970) (3,939) Consolidated non-GAAP gross profit $ 833,325 $ 1,005,118 $ 1,088,212 $ 1,122,239 $ 1,155,393 Consolidated gross profit, as a percentage of sales 10.8% 11.5% 11.5% 11.3% 10.8% Consolidated non-GAAP gross profit, as a percentage of sales 10.8% 11.5% 11.5% 11.2% 10.8% 9/27/2025 12/31/2025 4/4/2026 7/4/2026 10/3/2026 Consolidated Operating Expense $ 656,307 $ 714,678 $ 728,858 $ 747,876 $ 729,075 Intangible Amortization Expense (4,766) (4,764) (4,765) (4,753) (4,745) Restructuring & Integration charges (35,648) (41,239) (36,664) (24,139) (5,034) Consolidated non-GAAP Operating Expense $ 615,893 $ 668,675 $ 687,429 $ 718,984 $ 719,296 Consolidated operating expense, as a percentage of gross profit 78.6% 70.8% 66.8% 66.5% 62.9% Consolidated non-GAAP operating expense, as a percentage of non-GAAP gross profit 73.9% 66.5% 63.2% 64.1% 62.3% 9/27/2025 12/31/2025 4/4/2026 7/4/2026 10/3/2026 Americas ECS gross billings $ 2,713,373 $ 3,041,843 $ 2,959,611 $ 2,693,364 $ 2,907,324 EMEA ECS gross billings 2,476,599 4,039,437 3,473,712 3,162,931 3,028,245 Global ECS gross billings $ 5,189,972 $ 7,081,280 $ 6,433,323 $ 5,856,295 $ 5,935,569 Gross profit and operating expense reconciliation ($ in thousands) 21
Page 22
Operating income margin reconciliation ($ in thousands) 22 9/27/2025 7/4/2026 10/3/2026 Operating Income $ 179,007 $ 377 ,333 $ 430,257 Intangible Amortization 4,766 4,753 4,745 Restructuring and Integration Charges 35,648 24, 139 5,034 Inventory Adjustment $ (1,989) $ (2,970) $ (3,939) Consolidated non-GAAP operating income $ 217 ,432 $ 403,255 $ 436,097 Consolidated operating margin 2.3% 3.8% 4.0% Consolidated non-GAAP operating margin 2.8% 4.0% 4. 1%
Page 23
Quarter Ended July 4, 2026 June 28, 2025 Numerator: Consolidated operating income, as reported $ 377 ,333 $ 190,586 x4 x4 Annualized consolidated operating income $ 1,509,332 $ 762,344 Non-GAAP consolidated operating income $ 403,255 $ 215,375 x4 x4 Annualized non-GAAP consolidated operating income $ 1,613,020 $ 861,500 Denominator: Accounts receivable, net $ 28,008,735 $ 15,271,348 Inventories 5,939,587 4,749,431 Less: Accounts payable 27 , 107 ,855 13,213,323 Working capital $ 6,840,467 $ 6,807 ,456 Return on working capital 22. 1% 11.2% Return on working capital (Non-GAAP) 23.6% 12.7% Return on working capital reconciliation 23 ($ in thousands) Quarter Ended October 3, 2026 September 27, 2025 Numerator: Consolidated operating income, as reported $ 430,257 $ 179,007 x4 x4 Annualized consolidated operating income $ 1,721,028 $ 716,028 Non-GAAP consolidated operating income $ 436,097 $ 217,432 x4 x4 Annualized non-GAAP consolidated operating income $ 1,744,388 $ 869,728 Denominator: Accounts receivable, net 33,259,191 15,656,815 Inventories 7,305,982 4,728,011 Less: Accounts payable 32,862,316 13,126,538 Working capital 7,702,857 7,258,288 Return on working capital 22.3% 9.9% Return on working capital (Non-GAAP) 22.6% 12.0%
Page 24
Quarter Ended October 3, 2026 September 27, 2025 Numerator: Consolidated operating income, as reported $ 430,257 $ 179,007 Equity in earnings of affiliated companies (1) 1,693 463 Less: Noncontrolling interests (1) 156 69 Consolidated operating income, as adjusted 431,794 179,401 Less: Tax effect (2) 82,480 27,231 After-tax consolidated operating income, as adjusted 349,314 152,170 x4 x4 Annualized after-tax consolidated operating income, as adjusted $ 1,397,256 $ 608,680 Non-GAAP consolidated operating income $ 436,097 $ 217,432 Equity in earnings of affiliated companies (1) 1,693 463 Less: Noncontrolling interests (1) 156 69 Non-GAAP consolidated operating income, as adjusted 437,634 217,826 Less: Tax effect (3) 83,293 49,052 After-tax non-GAAP consolidated operating income, as adjusted 354,341 168,774 x4 x4 Annualized after-tax non-GAAP operating income, as adjusted $ 1,417,364 $ 675,096 Denominator: Average short-term borrowings, including current portion of long-term debt (4) $ 114,018 $ 233,215 Average long-term debt (4) 2,347,262 2,742,240 Average total equity (4) 7,170,293 6,442,346 Less: Average cash and cash equivalents (4) 230,119 217,791 Invested capital $ 9,401,454 $ 9,200,010 Return on invested capital 14.9% 6.6% Return on invested capital (Non-GAAP) 15.1% 7.3% Return on invested capital reconciliation ($ in thousands) (1) Operating income, as reported, and non- GAAP operating income is adjusted for noncontrolling interest and equity in earnings of affiliated companies to include the pro-rata ownership of non-wholly owned subsidiaries. (2) The tax effect is calculated by applying the effective tax rate for the three months ended October 3, 2026 and September 27, 2025 to consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense, gain on investments, net, and employee benefit plan expense, net. (3) The tax effect is calculated by applying the non-GAAP effective tax rate for the three months ended October 3, 2026 and September 27, 2025 to non-GAAP consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense and employee benefit plan expense, net. (4) The quarter ended average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter and dividing by two. 24
Page 25
9/27/2025 12/31/2025 4/4/2026 7/4/2026 10/3/2026 Global components operating income, as reported $ 197,355 $ 219,158 $ 363,520 $ 396,275 $ 413,032 Intangible assets amortization expense 3,838 3,837 3,837 3,824 3,817 Impact of wind down to inventory (1,989) (3,638) (2,248) (2,970) (3,939) Global components non-GAAP operating income $ 199,204 $ 219,357 $ 365,109 $ 397,129 $ 412,910 Global components operating Margin 3.6% 5.5% 5.5% 5.4% 5.2% Global components non-GAAP Operating Margin 3.6% 5.5% 5.5% 5.4% 5.2% Global ECS operating income, as reported $ 63,744 $ 187,884 $ 103,738 $ 85,375 $ 98,218 Intangible assets amortization expense 928 927 928 929 928 Global ECS non-GAAP operating income $ 64,672 $ 188,811 $ 104,666 $ 86,304 $ 99,146 Global ECS Operating Margin 3.0% 6.6% 3.7% 3.3% 3.5% Global ECS non-GAAP Operating Margin 3.0% 6.6% 3.7% 3.3% 3.6% Non-GAAP segment reconciliation 25 ($ in thousands)
Page 26
Non-GAAP segment reconciliation (continued) 26 ($ in thousands) 9/27/2025 12/31/2025 4/4/2026 7/4/2026 10/3/2026 Global components gross profit, as reported $ 609,101 $ 647,154 $ 806,748 $ 856,503 $ 878,761 Impact of wind down to inventory (1,989) (3,638) (2,248) (2,970) (3,939) Global components non-GAAP gross profit $ 607,112 $ 643,514 $ 804,500 $ 853,533 $ 874,822 Global components gross profit, as a percentage of sales 11.0% 11.0% 12.1% 11.6% 11.1% Global components non-GAAP gross profit, as a percentage of sales 10.9% 10.9% 12.1% 11.6% 11.0% Global ECS gross profit, as reported $ 226,213 $ 361,602 $ 283,712 $ 268,706 $ 280,571 Global ECS gross profit as a percentage of sales, as reported 10.5% 12.6% 10.0% 10.2% 10.1%
Page 27
Trailing Twelve Months 9/27/2025 10/3/2026 Income before income taxes $ 593,659 $ 1,307,085 Interest and other financing expense, net 231,732 169,683 Depreciation and amortization 143,403 142,121 Restructuring, integration, and other 95,938 107,076 Earnings before interest, taxes, depreciation and amortization ("EBITDA") $ 1,062,839 $ 1,725,965 As of 9/27/2025 10/3/2026 Short-term borrowings, including current portion of long -term debt $ 10,818 $ 110,497 Long-term debt 3,118,668 2,641,483 Amounts related to the EMEA asset securitization program: Receivables sold to Unaffiliated Financial Institutions that were u ncollected 331,071 519,328 Receivables sold under the factoring programs that were uncollected 236,648 216,221 Less: Cash (213,612) (215,607) Total Debt $ 3,483,593 $ 3,271,922 9/27/2025 10/3/2026 Adjusted Leverage Ratio 3.27 1.90 Net Leverage Reconciliation 27 ($ in thousands)