Earnings release
Page 1
1 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 $6.17 and Non-GAAP Diluted EPS of $6.22, Both Above High End of Guidance-- CENTENNIAL, Colo.--(BUSINESS WIRE)- Nov. 5, 2026--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its third quarter of 2026. “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,” said Bill Austen, Arrow’s 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.” “These results reflect the strength of our scalable operating model, disciplined execution and continued focus on expanding higher-margin, value-added services. We remain committed to strengthening our competitive position and broadening our capabilities to capture attractive growth opportunities. Supported by our solid financial foundation and disciplined approach to capital allocation, we are confident that Arrow is well positioned to deliver sustainable, profitable growth and create long-term value for all of our stakeholders.” Arrow Consolidated Quarter Ended Nine Months Ended October 3,September 27, October 3,September 27, (in millions except per share data) 2026 2025 Change 2026 2025 Change Consolidated sales $ 10,718 $ 7,713 39% $ 30,184 $ 22,107 37% Net income attributable to shareholders 318 109 192% 826 377 119% Net income per diluted share 6.17 2.09 196% 15.97 7.19 122% Non-GAAP net income attributable to shareholders (1) 321 126 155% 874 348 151% Non-GAAP net income per diluted share (1) 6.22 2.41 158% 16.89 6.64 154% In the third quarter of 2026, sales increased 39 percent year over year on both an actual and constant currency basis. Changes in foreign currencies had a negative impact of $10.3 million on sales and a positive impact of $0.02 on earnings per share on a diluted basis compared to the third quarter of 2025. Global Components Quarter Ended Nine Months Ended October 3,September 27, October 3,September 27, (in millions) 2026 2025 Change 2026 2025 Change Global Components sales $ 7,943 $ 5,556 43% $ 21,949 $ 15,619 41% Global Components operating income 413 197 109% 1,173 556 111% Global Components non-GAAP operating income (1) 413 199 107% 1,175 561 109% In the third quarter of 2026, Global Components sales increased 43 percent year over year on both an actual and constant currency basis. Americas Components third-quarter sales increased 58 percent year over year. EMEA Components third- quarter sales increased 41 percent year over year and increased 42 percent year over year on a constant currency basis. Asia-Pacific Components third-quarter sales increased 33 percent year over year.
Page 2
2 ARROW ELECTRONICS, INC. 9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000 NEWS Global Enterprise Computing Solutions ("ECS") Quarter Ended Nine Months Ended October 3,September 27, October 3,September 27, (in millions) 2026 2025 Change 2026 2025 Change Global ECS sales $ 2,775 $ 2,156 29% $ 8,235 $ 6,487 27% Global ECS operating income 98 64 54% 287 238 21% Global ECS non-GAAP operating income (1) 99 65 53% 290 241 20% In the third quarter of 2026, Global ECS sales increased 29 percent year over year and increased 30 percent year over year on a constant currency basis. Global ECS gross billings increased 14 percent year over year. Global ECS third-quarter operating income increased 54 percent and non-GAAP operating income increased 53 percent year over year. EMEA ECS third-quarter sales increased 30 percent year over year and increased 32 percent year over year on a constant currency basis. Americas ECS third-quarter sales increased 27 percent year over year. Other Financial Information In the third quarter of 2026, Arrow used $441 million of cash flow from operations, primarily due to working capital investments to support customer demand. The company also repurchased $93 million of shares during the third quarter. 1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
Page 3
3 Fourth-Quarter 2026 Outlook ● Consolidated 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 ● Net income per share on a diluted basis of $6.25 to $6.45, and non-GAAP net income per share on a diluted basis of $7.00 to $7.20 ● 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 $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 $0.07 compared to the third quarter of 2026 Fourth-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended December 31, December 31, December 31, October 3, (in billions) 2026 2025 % Change 2026 2026 % Change Global Components sales, GAAP$ 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 Intangible amortization Restructuring & GAAP measure expense integration charges Non-GAAP measure Net income per diluted share $6.25 to $6.45 $0.07 $0.68 $7.00 to $7.20
Page 4
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 third-quarter 2026 financial results on Nov. 5, 2026, at 8:30 a.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/511113055. 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 represents amounts invoiced to customers for goods and services during a specified period and does 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 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 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 not to place undue reliance on these forward-looking statements, which speak
Page 5
5 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 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
Page 6
6 ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) Quarter Ended Nine Months Ended October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025 Sales $ 10,717,739 $ 7,712,541 $ 30,183,524 $ 22,106,505 Cost of sales 9,558,407 6,877,227 26,808,523 19,648,542 Gross profit 1,159,332 835,314 3,375,001 2,457,963 Operating expenses: Selling, general, and administrative 688,168 587,866 2,032,447 1,751,172 Depreciation and amortization 35,873 32,793 107,525 103,765 Restructuring, integration, and other 5,034 35,648 65,837 74,880 729,075 656,307 2,205,809 1,929,817 Operating income 430,257 179,007 1,169,192 528,146 Equity in earnings of affiliated companies 1,693 463 4,654 1,124 Gain on investments, net 2,893 4,859 9,145 108,975 Post-retirement expense (999) (664) (2,960) (1,950) Interest and other financing expense, net (40,138) (54,875) (125,919) (171,340) Income before income taxes 393,706 128,790 1,054,112 464,955 Provision for income taxes 75,175 19,528 226,716 88,807 Consolidated net income 318,531 109,262 827,396 376,148 Noncontrolling interests 156 69 1,204 (514) Net income attributable to shareholders $ 318,375 $ 109,193 $ 826,192 $ 376,662 Net income per share: Basic $ 6.25 $ 2.11 $ 16.14 $ 7.25 Diluted $ 6.17 $ 2.09 $ 15.97 $ 7.19 Weighted-average shares outstanding: Basic 50,953 51,695 51,195 51,935 Diluted 51,615 52,141 51,721 52,381
Page 7
7 ARROW ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS (In thousands except par value) (Unaudited) October 3, December 31, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 215,607 $ 306,467 Accounts receivable, net 33,259,191 19,738,666 Inventories 7,305,982 5,081,863 Other current assets 871,546 533,035 Total current assets 41,652,326 25,660,031 Property, plant, and equipment, at cost: Land 5,691 5,691 Buildings and improvements 208,288 199,433 Machinery and equipment 1,721,665 1,715,415 1,935,644 1,920,539 Less: Accumulated depreciation and amortization (1,482,743) (1,445,889) Property, plant, and equipment, net 452,901 474,650 Investments in affiliated companies 61,852 59,315 Intangible assets, net 62,769 77,022 Goodwill 2,101,839 2,120,071 Other assets 715,608 687,049 Total assets $ 45,047,295 $ 29,078,138 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 32,862,316 $ 17,383,796 Accrued expenses 1,710,636 1,461,261 Short-term borrowings, including current portion of long-term debt 110,497 341 Total current liabilities 34,683,449 18,845,398 Long-term debt 2,641,483 3,084,715 Other liabilities 460,659 489,326 Equity: Shareholders’ equity: Common stock, par value $1: Authorized - 160,000 shares in both 2026 and 2025 Issued - 56,135 and 55,838 shares in 2026 and 2025, respectively 56,135 55,838 Capital in excess of par value 624,987 586,993 Treasury stock (5,577 and 4,768 shares in 2026 and 2025, respectively), at cost (651,824) (483,571) Retained earnings 7,378,284 6,552,092 Accumulated other comprehensive loss (219,014) (126,640) Total shareholders’ equity 7,188,568 6,584,712 Noncontrolling interests 73,136 73,987 Total equity 7,261,704 6,658,699 Total liabilities and equity $ 45,047,295 $ 29,078,138
Page 8
8 ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Quarter Ended October 3, 2026 September 27, 2025 Cash flows from operating activities: Consolidated net income: $ 318,531 $ 109,262 Adjustments to reconcile consolidated net income to net cash used for operations: Depreciation and amortization 35,873 32,793 Amortization of stock-based compensation 11,563 (9,752) Equity in earnings of affiliated companies (1,693) (463) Deferred income taxes (26,920) (66) Gain on investments, net (2,781) (5,540) Other (622) 225 Change in assets and liabilities: Accounts receivable, net (5,294,432) (395,610) Inventories (1,375,531) 18,776 Accounts payable 5,788,135 (78,464) Accrued expenses 228,429 (12,657) Other assets and liabilities (121,961) 59,812 Net cash used for operating activities (441,409) (281,684) Cash flows from investing activities: Acquisition of property, plant, and equipment (26,877) (30,276) Net cash used for investing activities (26,877) (30,276) Cash flows from financing activities: Change in short-term and other borrowings (7,076) (444,953) Proceeds from long-term bank borrowings, net 586,630 751,880 Proceeds from exercise of stock options 82 226 Repurchases of common stock (99,306) (630) Net cash provided by financing activities 480,330 306,523 Effect of exchange rate changes on cash (41,068) (2,921) Net decrease in cash and cash equivalents (29,024) (8,358) Cash and cash equivalents at beginning of period 244,631 221,970 Cash and cash equivalents at end of period $ 215,607 $ 213,612
Page 9
9 ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended October 3, 2026 September 27, 2025 Cash flows from operating activities: Consolidated net income: $ 827,396 $ 376,148 Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: Depreciation and amortization 107,525 103,765 Amortization of stock-based compensation 33,978 20,448 Equity in earnings of affiliated companies (4,654) (1,124) Deferred income taxes (14,517) 5,185 Loss on disposition of businesses, net 22,830 — Gain on investments, net (8,827) (109,435) Other (795) (77) Change in assets and liabilities: Accounts receivable, net (13,633,334) (2,292,091) Inventories (2,251,808) 65,225 Accounts payable 15,543,508 1,871,455 Accrued expenses 341,010 (94,367) Other assets and liabilities (385,620) (81,033) Net cash provided by (used for) operating activities 576,692 (135,901) Cash flows from investing activities: Acquisition of property, plant, and equipment (80,123) (73,873) 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 (80,123) 50,985 Cash flows from financing activities: Change in short-term and other borrowings 186 9,852 Repayments of long-term bank borrowings, net (336,540) 338,223 Redemption of notes — (350,000) Proceeds from exercise of stock options 10,513 3,427 Repurchases of common stock (174,453) (110,779) Other (153) (148) Net cash used for financing activities (500,447) (109,425) Effect of exchange rate changes on cash (86,982) 219,146 Net (decrease) increase in cash and cash equivalents (90,860) 24,805 Cash and cash equivalents at beginning of period 306,467 188,807 Cash and cash equivalents at end of period $ 215,607 $ 213,612
Page 10
10 ARROW ELECTRONICS, INC. ECS Gross Billings (In thousands) (Unaudited) Global Enterprise Computing Solutions - Gross Billings(1) Quarter Ended Nine Months Ended October 3, September 27, October 3, September 27, 2026 2025 % Change 2026 2025 % Change Gross billings: Americas ECS $ 2,907,324 $ 2,713,373 7% $ 8,560,299 $ 7,564,869 13% EMEA ECS 3,028,245 2,476,599 22% 9,664,888 7,404,025 31% Global ECS $ 5,935,569 $ 5,189,972 14% $ 18,225,187 $ 14,968,894 22% (1) Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue. b
Page 11
11 ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) Quarter Ended October 3, 2026 September 27, 2025 % 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%
Page 12
12 ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) Nine Months Ended October 3, 2026 September 27, 2025 % Change Consolidated sales, as reported $ 30,183,524 $ 22,106,505 36.5% Impact of changes in foreign currencies — 356,672 Consolidated sales, constant currency $ 30,183,524 $ 22,463,177 34.4% Global Components sales, as reported $ 21,948,552 $ 15,619,012 40.5% Impact of changes in foreign currencies — 217,692 Global Components sales, constant currency $ 21,948,552 $ 15,836,704 38.6% Americas Components sales, as reported $ 7,469,825 $ 4,984,932 49.8% Impact of changes in foreign currencies — 905 Americas Components sales, constant currency $ 7,469,825 $ 4,985,837 49.8% EMEA Components sales, as reported $ 5,740,939 $ 4,210,552 36.3% Impact of changes in foreign currencies — 176,167 EMEA Components sales, constant currency $ 5,740,939 $ 4,386,719 30.9% Asia Components sales, as reported $ 8,737,788 $ 6,423,528 36.0% Impact of changes in foreign currencies — 40,620 Asia Components sales, constant currency $ 8,737,788 $ 6,464,148 35.2% Global ECS sales, as reported $ 8,234,972 $ 6,487,493 26.9% Impact of changes in foreign currencies — 138,980 Global ECS sales, constant currency $ 8,234,972 $ 6,626,473 24.3% Americas ECS sales, as reported $ 3,621,507 $ 2,984,638 21.3% Impact of changes in foreign currencies — 3,445 Americas ECS sales, constant currency $ 3,621,507 $ 2,988,083 21.2% EMEA ECS sales, as reported $ 4,613,465 $ 3,502,855 31.7% Impact of changes in foreign currencies — 135,535 EMEA ECS sales, constant currency $ 4,613,465 $ 3,638,390 26.8%
Page 13
13 ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) 1 Three months ended October 3, 2026 Reported Intangible Restructuring, Impact of Non GAAP amortization Integration Wind recurring Non-GAAP measure expense and other Down(1) tax items Other(2) 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 (5) $ 6.17 $ 0.07 $ 0.08 $ (0.05)$ — $ (0.04) $ 6.22 Effective tax rate (6) 19.1% 19.0% Three months ended September 27, 2025 Reported Intangible Restructuring, Impact of Non GAAP amortization Integration Wind recurring Non-GAAP measure expense and other Down(1) tax items(3) Other(2) 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 (5) $ 2.09 $ 0.07 $ 0.51 $ (0.03)$ (0.16) $ (0.07) $ 2.41 Effective tax rate (6) 15.2% 22.5%
Page 14
ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) Nine months ended October 3, 2026 Reported Intangible Restructuring, Impact of Non GAAP amortization Integration Wind recurring Non-GAAP measure expense and other Down(1) tax items Other(2) measure Operating income $ 1,169,192 $ 14,263 $ 65,837 $ (9,157)$ —$ —$ 1,240,135 Income before income taxes 1,054,112 14,263 65,837 (9,157) — (9,145) 1,115,910 Provision for income taxes 226,716 3,486 17,117 (2,897) (1,230) (2,196) 240,996 Consolidated net income 827,396 10,777 48,720 (6,260) 1,230 (6,949) 874,914 Noncontrolling interests 1,204 — — — — — 1,204 Net income attributable to shareholders $ 826,192 $ 10,777 $ 48,720 $ (6,260)$ 1,230$ (6,949)$ 873,710 Net income per diluted share (5) $ 15.97 $ 0.21 $ 0.94 $ (0.12)$ 0.02$ (0.13)$ 16.89 Effective tax rate (6) 21.5% 21.6% Nine months ended September 27, 2025 Reported Intangible Restructuring, Impact of Non GAAP amortization Integration Wind recurring Non-GAAP measure expense and other Down(1) tax items(3) Other(4) measure Operating income $ 528,146 $ 14,996 $ 74,880 $ (6,628)$ —$ 172$ 611,566 Income before income taxes 464,955 14,996 74,880 (6,628) — (108,803) 439,400 Provision for income taxes 88,807 3,686 19,400 (2,099) 8,143 (26,102) 91,835 Consolidated net income 376,148 11,310 55,480 (4,529) (8,143) (82,701) 347,565 Noncontrolling interests (514) 156 — — — — (358) Net income attributable to shareholders $ 376,662 $ 11,154 $ 55,480 $ (4,529)$ (8,143)$ (82,701)$ 347,923 Net income per diluted share (5) $ 7.19 $ 0.21 $ 1.06 $ (0.09)$ (0.16)$ (1.58)$ 6.64 Effective tax rate (6) 19.1% 20.9% 1 (1) Includes recoveries of inventory related to the wind down of a business. (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) Other includes gain on investments, net and employee severance and benefits costs not related to restructuring initiative presented in cost of sales. (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.
Page 15
14
Page 16
15 ARROW ELECTRONICS, INC. SEGMENT INFORMATION (In thousands) (Unaudited) Quarter Ended Nine Months Ended October 3, September 27, October 3, September 27, 2026 2025 2026 2025 Sales: Global Components $ 7,942,592 $ 5,556,392 $ 21,948,552 $ 15,619,012 Global ECS 2,775,147 2,156,149 8,234,972 6,487,493 Consolidated $ 10,717,739 $ 7,712,541 $ 30,183,524 $ 22,106,505 Operating income: Global Components (a) $ 413,032 $ 197,355 $ 1,172,826 $ 555,548 Global ECS (b) 98,218 63,744 287,331 238,027 Segment operating income $ 511,250 $ 261,099 $ 1,460,157 $ 793,575 Corporate operating expenses (c) (80,993) (82,092) (290,965) (265,429) Consolidated $ 430,257 $ 179,007 $ 1,169,192 $ 528,146 (a) Global Components operating income includes $3.9 million and $9.2 million in inventory recoveries related to the wind down of a businessfor the third quarter and first nine months of 2026, respectively, and $2.0 million and $6.6 million in inventory recoveries related to the winddown of a business for the third quarter and first nine months of 2025, respectively.(b) Global ECS operating income includes costs related to the underperformance of certain non-cancellable multi-year purchase obligations,where the quarterly fee was in excess of the margin realized, in the amount of $3.8 million and $52.1 million for the third quarter and firstnine months of 2026, respectively, and $12.6 million and $18.3 million, for the third quarter and first nine months of 2025, respectively.(c) Corporate unallocated operating expenses includes restructuring, integration, and other charges of $5.0 million and $65.8 million for thethird quarter and first nine months of 2026, respectively, and $35.6 million and $74.9 million for the third quarter and first nine months of2025, respectively.
Page 17
16 ARROW ELECTRONICS, INC. NON-GAAP SEGMENT RECONCILIATION (In thousands) (Unaudited) Quarter Ended Nine Months Ended October 3, September 27, October 3, September 27, 2026 2025 2026 2025 Global Components gross profit, as reported $ 878,761 $ 609,101 $ 2,542,012 $ 1,755,500 Impact of wind down to inventory (3,939) (1,989) (9,157) (6,628) Other — — — 172 Global Components non-GAAP gross profit $ 874,822 $ 607,112 $ 2,532,855 $ 1,749,044 Global Components gross profit as a percentage of sales, as reported 11.1% 11.0% 11.6% 11.2% Global Components non-GAAP gross profit as a percentage of sales 11.0% 10.9% 11.5% 11.2% Global ECS gross profit, as reported $ 280,571 $ 226,213 $ 832,989 $ 702,463 Global ECS gross profit as a percentage of sales, as reported 10.1% 10.5% 10.1% 10.8% Quarter Ended Nine Months Ended October 3, September 27, October 3, September 27, 2026 2025 2026 2025 Global Components operating income, as reported $ 413,032 $ 197,355 $ 1,172,826 $ 555,548 Intangible assets amortization expense 3,817 3,838 11,478 12,221 Impact of wind down to inventory (3,939) (1,989) (9,157) (6,628) Other — — — 172 Global Components non-GAAP operating income $ 412,910 $ 199,204 $ 1,175,147 $ 561,313 Global Components operating income as a percentage of sales, as reported 5.2% 3.6% 5.3% 3.6% Global Components non-GAAP operating income as a percentage of sales 5.2% 3.6% 5.4% 3.6% Global ECS operating income, as reported $ 98,218 $ 63,744 $ 287,331 $ 238,027 Intangible assets amortization expense 928 928 2,785 2,775 Global ECS non-GAAP operating income $ 99,146 $ 64,672 $ 290,116 $ 240,802 Global ECS operating income as a percentage of sales, as reported 3.5% 3.0% 3.5% 3.7% Global ECS non-GAAP operating income as a percentage of sales 3.6% 3.0% 3.5% 3.7% 14 NON-GAAP SEGMENT RECONCILIATIONS