Description

Arrow Electronics’ $1 Billion Cash Flow Milestone — Financial Flexibility Is Building!

Arrow Electronics reported second-quarter 2026 revenue of $10 billion, up 32% year-over-year, while operating margin expanded 120 basis points to 4%, exceeding expectations. Non-GAAP EPS rose 124% to $5.45, supported by unit volume growth, price inflation, disciplined expense and working capital management, and operating leverage. Demand remained broad across geographies, verticals, and customer segments, with strength in industrial, aerospace and defense, transportation, and technology markets influenced by AI investment. Global Components sales increased 11% sequentially to $7.4 billion, while operating income rose 9%. Operating margin declined 10 basis points sequentially but increased 180 basis points year-over-year. The segment benefited from a healthy backlog extending into 2027, global book-to-bill ratios above parity, and greater use of value-added supply chain services. Price inflation represented roughly one-third of the sequential sales increase, while memory components accounted for a growing but controlled sales share. Demand remained broad without significant dependence on one vertical.