Arrow Electronics (ARW) investor relations material

Executive summary

• First quarter 2026 revenue reached $9.5 billion, up 39% year-over-year, surpassing the high end of guidance, with strong operational momentum and improved book-to-bill ratios across both Global Components and ECS segments.

• Non-GAAP EPS surged 190% year-over-year to $5.22, with GAAP EPS at $4.55, both above guidance; net income attributable to shareholders was $235 million, up 195%.

• Strong demand, especially in AI, cloud, and data center infrastructure, and four extra shipping days contributed to growth.

• Value-added and supply chain services, along with operational leverage, significantly boosted operating income.

• Cash flow from operations was $700 million, and $25 million of shares were repurchased.

Financial highlights

• Sales increased $2.7 billion year-over-year to $9.5 billion, with gross profit at $1.09 billion and gross margin at 11.5%.

• Non-GAAP operating income grew by $222 million to $401 million; operating margin reached 4.2%.

• Net income attributable to shareholders was $235 million, up 195% year-over-year; non-GAAP net income was $270 million, up 185%.

• Cash flow from operating activities was $700 million; gross balance sheet debt declined to $2.5 billion.

• Return on working capital increased to 23.1%; return on invested capital rose to 13.4%.

Outlook and guidance

• Q2 2026 consolidated sales expected between $9.15 billion and $9.75 billion; non-GAAP diluted EPS guidance is $4.32 to $4.52, with tax rate 23–25% and interest expense ~$60 million.

• Global Components Q2 sales guided to $6.8–$7.2 billion; ECS to $2.35–$2.55 billion.

• Foreign currency expected to increase Q2 sales by $117 million and EPS by $0.11 year-over-year.

• Supply chain services profit expected to normalize in Q2; Asia to be seasonally strong but at lower margins.

• The Operating Expense Efficiency Plan is expected to reduce annual operating expenses by $90–100 million by year-end 2026.