Arrow Electronics Profit Climbs 192% As Quarterly Sales Reach A Record $10.7 Billion
Both earnings measures topped guidance, but supporting customer demand consumed $441 million in operating cash.
Arrow Electronics, which distributes electronic components and enterprise computing products, posted $318 million in third-quarter shareholder profit, up 192% from a year earlier, alongside record sales of $10.7 billion. Sales grew 39% both as reported and excluding currency changes, and revenue and earnings per share beat the upper limits of the company’s forecasts, according to Thursday’s earnings release.
Earnings Outrun The Sales Gain
Arrow earned $6.17 per diluted share, compared with $2.09 a year earlier. Adjusted earnings reached $6.22 per share, up 158% from $2.41; the company described its quarterly revenue and earnings per share as records.
ARW shares rose about 2% to $180.86 in Friday trading.
The components division produced $7,943 million in revenue, growing 43% on both a reported and currency-neutral basis. Its operating profit—earnings before interest and taxes—rose 109% to $413 million, and its operating margin widened to 5.2% from 3.6%.
Growth extended across its regions: Americas components sales increased 58%, while Europe, the Middle East and Africa gained 41% as reported, or 42% excluding currency changes. Asia-Pacific sales rose 33% as reported.
Bill Austen, Arrow’s interim chief executive officer, said components demand extended across regions, customers and industries, with “a growing backlog and book-to-bill ratios well above parity.” That means incoming orders exceeded sales. Austen’s statement also pointed to customer spending on artificial intelligence, cloud, cybersecurity and hybrid infrastructure in enterprise computing.
Computing Growth, Cash Consumption
Enterprise computing sales reached $2,775 million, up 29% as reported and 30% excluding currency changes. Operating profit increased 54% to $98 million. Gross billings, which measure amounts invoiced rather than recognized revenue, rose 14%.
Arrow’s two businesses serve different parts of the technology supply chain. Components supplies semiconductors and other electronics to equipment makers and manufacturing service providers; enterprise computing sells datacenter, cloud, security and analytics products to resellers and service providers. Arrow also provides engineering, supply-chain and integration services. In 2025, components accounted for about 70% of sales and enterprise computing about 30%.
The stronger earnings came with a $441 million operating cash outflow. Arrow attributed that primarily to working capital investments—the money tied up in meeting customer demand. The company also spent $93 million repurchasing shares during the quarter.
A Higher Fourth-Quarter Sales Range
Arrow forecasts fourth-quarter revenue of $11.55 billion to $12.15 billion. The outlook includes $8.15 billion to $8.55 billion from components and $3.40 billion to $3.60 billion from enterprise computing.
Management expects diluted earnings of $6.25 to $6.45 per share, or $7.00 to $7.20 on an adjusted basis. The adjusted outlook excludes $0.07 per share of intangible-asset amortization and $0.68 of restructuring and integration charges.
The forecast assumes a tax rate of 23% to 25% and approximately $50 million in interest expense. Arrow expects currency changes to reduce revenue by approximately $88 million and diluted earnings by $0.14 per share compared with the fourth quarter of 2025.
The cash picture differs across periods: despite the third-quarter outflow, operations generated $576.692 million over the first nine months of 2026, compared with a $135.901 million outflow a year earlier.
Sources
- 8-K Filing — ARROW ELECTRONICS, INC. (ARW) — SEC EDGAR
- Exhibit arw-ex99d1.htm — ARROW ELECTRONICS, INC. 8-K exhibit — SEC EDGAR
- Arrow Electronics Inc (ARW) Q3 2026 Earnings Call Highlights: Record $10. ... — Yahoo Finance
