Arrow Electronics Posts Record Sales and Earnings

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue hit a record $10.72 billion, 39% above a year earlier, and diluted EPS of $6.17 cleared the high end of the company’s range.

Arrow Electronics, Inc. (ARW), the technology distributor, reported record third-quarter sales of $10.72 billion, up 39% from a year earlier on both an actual and constant-currency basis, above the high end of its guidance.

That year-over-year pace accelerated from 32% growth in the second quarter and matched the 39% increase recorded in the first quarter. Diluted earnings were $6.17 a share and non-GAAP diluted earnings $6.22 a share, both above the high end of the company’s outlook.

Interim chief executive officer Bill Austen said the company delivered record quarterly revenue and EPS, with momentum across both Global Components and Global Enterprise Computing Solutions. He said Global Components continued to benefit from demand across geographies, customer segments and industry verticals, with a growing backlog and book-to-bill ratios well above parity.

Global Components sales were $7.94 billion, up 43% year over year on both an actual and constant-currency basis, faster than the 39% increase in the first quarter. Operating income in the segment was $413 million, up 109% from a year earlier.

Americas Components sales rose 58% year over year. EMEA Components sales increased 41%, or 42% on a constant-currency basis. Asia-Pacific Components sales rose 33%.

Global ECS sales were $2.78 billion, up 29% year over year and 30% on a constant-currency basis. Operating income in the segment was $98 million, up 54% from a year earlier; non-GAAP operating income was $99 million, up 53%. EMEA ECS sales rose 30%, or 32% on a constant-currency basis. Americas ECS sales increased 27%.

Global ECS gross billings were $5.94 billion, up 14% year over year. Americas ECS billings were $2.91 billion, up 7%, and EMEA ECS billings were $3.03 billion, up 22%. Austen said ECS also experienced robust demand as customers modernized technology environments through investments in AI, cloud, cybersecurity and hybrid infrastructure.

Foreign currencies reduced third-quarter sales by $10.3 million and added $0.02 to diluted earnings per share versus the year-ago quarter. Consolidated operating income was $430.3 million, compared with $179.0 million a year earlier. Net income attributable to shareholders was $318 million.

Cash flow from operations used $441 million, which the company said was primarily due to working-capital investments to support customer demand. The company repurchased $93 million of shares in the quarter. Cash and cash equivalents were $215.6 million at October 3, 2026.

For the fourth quarter of 2026, Arrow expects 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. Diluted earnings are expected at $6.25 to $6.45 a share, and non-GAAP diluted earnings at $7.00 to $7.20 a share. The company said changes in foreign currencies are expected to decrease sales by about $88 million versus the fourth quarter of 2025 and to reduce quarter-over-quarter sales growth by $86 million versus the third quarter of 2026.