Arrow Electronics, Inc.

Global Components supplies manufacturers and supports their supply chains. Global Enterprise Computing Solutions, or ECS, works with technology providers and resellers across areas such as cloud, cybersecurity and infrastructure. Arrow trades on the New York Stock Exchange under ARW.

Latest financial results

Adjusted earnings remove intangible amortization, restructuring and integration items, inventory recoveries from a business wind-down and specified investment gains or tax items. Ordinary costs from underperforming ECS purchase commitments remain in the quarterly adjusted results.

Business trends and outlook

Third-quarter Global Components sales were $7.94 billion and operating profit was $413.0 million. The division benefited from broad demand across regions and industries. Its adjusted operating margin was 5.2%, up from 3.6% a year earlier but below 5.4% in the second quarter.

ECS sales were $2.78 billion, with $98.2 million in operating profit. Sales increased 29%, while gross billings increased 14%. A shift toward more transactions recognized on a gross basis, especially in EMEA, affects the relationship between sales growth and the underlying invoiced activity.

For Q4 2026, Arrow forecasts sales of $11.55 billion to $12.15 billion, reported diluted earnings of $6.25 to $6.45 a share and adjusted diluted earnings of $7.00 to $7.20. The sales range comprises $8.15 billion to $8.55 billion in Components and $3.40 billion to $3.60 billion in ECS.

Working capital, cash and financing

At October 3, 2026, cash and cash equivalents were $215.6 million. Balance-sheet borrowings totaled about $2.75 billion, including $110.5 million classified as current. Arrow reported about $3.1 billion of undrawn committed borrowing capacity.

Customer receivables of $33.26 billion and supplier payables of $32.86 billion reflect Arrow's large intermediary role in supply-chain transactions. Inventory was $7.31 billion. These balances and their settlement timing are central to its funding needs.

Operating cash flow was positive $576.7 million for the first nine months, compared with a $135.9 million outflow a year earlier. Capital spending used $80.1 million. Quarterly operating cash flow was negative as inventory and customer receivables grew faster than supplier financing could offset.

Contract changes and capital returns

After quarter-end, Arrow incurred a $41.2 million charge to terminate an underperforming multi-year purchase contract, to be recorded in Q4. Costs associated with underperforming ECS purchase obligations were $3.8 million in Q3 and $52.1 million over the first nine months. Arrow also amended another contract. Such arrangements require minimum payments that can exceed the margin earned.

The cash-flow statement records $99.3 million of share repurchase cash outflow in Q3. About $863.4 million remained authorized for buybacks at quarter-end. That authorization permits future purchases and is separate from cash already spent.