Arrow Electronics Q1 Earnings Call Highlights

Arrow Electronics (NYSE:ARW) reported sharply higher first-quarter 2026 results, with absorption pointing to broad-based request betterment successful components, continued spot tied to AI and information halfway spending successful its endeavor computing business, and improved operating leverage from anterior outgo actions.

The institution said full gross roseate 39% year-over-year to $9.5 billion, exceeding its guidance range. Non-GAAP operating borderline expanded 160 ground points to 4.2%, portion non-GAAP diluted net per stock accrued 190% year-over-year to $5.22.

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Interim President and Chief Executive Officer William Austen said the 4th reflected “unit measurement maturation coupled with bully execution,” leverage successful the profit-and-loss statement, and a stronger premix of value-added services. He said the institution saw beardown show successful some Global Components and Global Enterprise Computing Solutions, oregon ECS.

Components Recovery Broadens Across Regions and End Markets

In Global Components, first-quarter income accrued $758 cardinal sequentially to $6.6 billion, up 13% from the anterior quarter. Non-GAAP operating income successful the conception roseate $146 cardinal sequentially to $365 million, portion non-GAAP operating borderline accrued 180 ground points to 5.5%.

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Chief Financial Officer Rajesh K. Agrawal said the cyclical marketplace betterment accelerated successful the backmost fractional of the archetypal 4th astatine a gait that exceeded the company’s expectations. He said maturation was broad-based crossed geography, manufacture vertical and lawsuit type, with book-to-bill ratios “well supra 1” successful each 3 regions.

Management said backlog is gathering into the 3rd and 4th quarters, and pb times are gradually extending but stay beneath levels associated with a wide shortage environment. Austen said the institution believes lawsuit bid patterns are rational and that request is being driven by portion volumes alternatively than price.

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Agrawal said concern and transportation, Arrow’s 2 largest verticals, posted double-digit sequential maturation successful some the Americas and EMEA. He besides highlighted spot successful aerospace and defence successful the Americas and EMEA, portion Asia maturation was driven by industrial, wide marketplace customers and request for information halfway computing power.

Arrow besides said its interconnect, passive and electromechanical components business, described by absorption arsenic an accretive segment, generated grounds gross and surpassed $1 cardinal for the archetypal clip successful the quarter.