Arrow Electronics reported record third-quarter revenue and earnings, with sales rising 39% from a year earlier to $10.72 billion. Both diluted earnings per share and the company’s non-GAAP measure came in above the high end of guidance.
Growth was strong in Global Components and Global Enterprise Computing Solutions, Arrow said. The company pointed to broad demand and a growing backlog in Components, and customer spending on AI, cloud, cybersecurity and hybrid infrastructure in its enterprise computing business.
Key details
- Quarterly results: Net income attributable to shareholders was $318 million, up from $109 million a year earlier. Diluted earnings per share rose to $6.17 from $2.09.
- Adjusted results: Non-GAAP net income was $321 million, compared with $126 million a year earlier. Non-GAAP diluted EPS was $6.22, versus $2.41.
- Global Components: Sales increased 43% to $7.94 billion. Operating income more than doubled to $413 million from $197 million.
- Sales rose 58% in the Americas, 41% in EMEA and 33% in Asia-Pacific.
- Arrow said the business had a growing backlog and book-to-bill ratios well above parity.
- Global Enterprise Computing Solutions: Arrow described demand as robust, citing customer investments in AI, cloud, cybersecurity and hybrid infrastructure. The earnings release content provided here does not include the segment’s financial table.
- Nine-month results: Revenue for the first nine months of 2026 was $30.18 billion, up 37%. Net income was $826 million, compared with $377 million, and diluted EPS was $15.97, versus $7.19. Non-GAAP diluted EPS for the period was $16.89, up from $6.64.
- Currency effects: Foreign exchange had a negligible effect on third-quarter sales, reducing them by $10.3 million, while adding $0.02 to diluted EPS compared with the year-earlier quarter.
- Leadership: Bill Austen, Arrow’s interim chief executive, attributed the results to momentum in both businesses, disciplined execution and a focus on higher-margin, value-added services.
Plain-English implications
The quarter’s growth was not limited to one business: both major segments contributed, with Global Components also delivering a sharp increase in operating income. Arrow said its current demand and backlog trends were strong, while describing its capital-allocation approach as disciplined.