Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its fourth quarter and fiscal year ended Dec. 31, 2025.

“Arrow delivered a strong fourth quarter, reflecting disciplined execution across the business and continued progress against our strategic priorities,” said Bill Austen, Arrow’s interim president and chief executive officer. “We saw meaningful momentum across both Global Components and ECS, supported by improving leading indicators, strong performance in our value-added offerings, and continued momentum in cloud, AI, and datacenter activity.”

“We are pleased with how the organization performed as we closed the year, amid an environment that continues to recover gradually. We enter 2026 with positive momentum and remain cautiously optimistic as the business remains in the early stages of a modest cyclical upturn. Our focus remains on accelerating profitable growth, expanding our higher-margin, value-added capabilities, and maintaining financial discipline. With a diversified business model, improving profitability, and a talented global team, we believe Arrow is well positioned to execute through the recovery and create long-term value for our customers and shareholders.”

In the fourth quarter of 2025, sales increased 20 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately $232 million on sales and $0.23 on earnings per share on a diluted basis compared to the fourth quarter of 2024.

Full-year 2025 sales increased 10 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately $399 million on sales and $0.31 on earnings per share on a diluted basis compared to 2024.

Global Components

In the fourth quarter of 2025, global component sales increased 22 percent year over year and increased 19 percent year over year on a constant currency basis. Americas components fourth-quarter sales increased 22 percent year over year. EMEA⁽²⁾

Global Enterprise Computing Solutions

In the fourth quarter of 2025, global enterprise computing solutions (“ECS”) sales increased 16 percent year over year and increased 11 percent year over year on a constant currency basis. Global ECS billings increased 16 percent year over year. EMEA ECS fourth-quarter sales increased 24 percent year over year and increased 13 percent year over year on a constant currency basis. Americas ECS fourth-quarter sales increased 7 percent year over year.

Other Financial Information

In the fourth quarter of 2025, Arrow generated $200 million of cash flow from operations and repurchased $50 million of shares.

First-Quarter 2026 Outlook

Earnings Presentation

Please refer to the earnings presentation, that can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company uses its website as a tool to disclose important information about the company and to comply with its disclosure obligations under Regulation Fair Disclosure.

Webcast and Conference Call Information

Arrow Electronics will host a conference call to discuss fourth-quarter and full-year 2025 financial results on Feb. 5, 2026, at 4:30 PM ET.

A live webcast of the conference call will be available via the events section ofinvestor.arrow.com https://events.q4inc.com/attendee/176417710

About Arrow Electronics

Arrow Electronics sources and engineers technology solutions for thousands of leading technology manufacturers and service providers. With 2025 sales of $31 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more atarrow.com

Key Business Metrics

Management uses gross billings as an operational metric to monitor operating performance of its global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information to the reader in evaluating the overall performance of the global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represent amounts invoiced to customers for goods and services during a period and do not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.

Information Relating to Forward-Looking Statements

This press release includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “would,” “could,” “believes,” “seeks,” “projected,” “potential,” “estimates,” and similar expressions, and include, but are not limited to, statements regarding: Arrow’s future financial performance, including its outlook on financial results for the first quarter of fiscal 2026 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, the timing of the completion of the Operating Expense Efficiency Plan (the “Plan”) and Arrow’s estimated costs and expected operating expense reductions from the Plan, industry trends and expectations regarding market demand and conditions and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions or changes, including those that may occur in connection with recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; political instability and changes; impacts of military conflict and sanctions; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; disruptions, shortages, or inefficiencies in the supply chain; non-compliance with certain laws, regulations, or executive orders, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; management transitions, including the company’s search for a permanent CEO; the incurrence of unanticipated charges or failure to realize contemplated cost savings in connection with the Operating Expense Efficiency Plan; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; changes in relationships with key suppliers; other vagaries in the global components and the global ECS markets; changes to applicable laws, regulations, executive orders, or rules relating to government contractors and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; commercial disputes, patent infringement claims, product liability lawsuits, or other legal proceedings; foreign tax and other loss contingencies; failure, disruption, or compromise of the company’s information systems or those of a third-party service provider, including unauthorized use or disclosure of company, supplier, or customer information; outbreaks, epidemics, pandemics, or public health crises; the effects of natural or man-made catastrophic events; and the company’s ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent Quarterly Report on Form 10-Q and the company’s most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interest, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization; restructuring, integration, and other; net gains and losses on investments; inventory write downs related to the wind down of businesses within the global components reportable segment (“impact of wind down”); loss on extinguishment of debt; and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP. For further discussion of our non-GAAP measures and related adjustments, refer to the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K.

View source version on businesswire.com:https://www.businesswire.com/news/home/20260205884416/en/


Arrow Consolidated
	Quarter Ended						Year Ended
	December 31,		December 31,				December 31,		December 31,
(in millions except per share data)	2025		2024		Change		2025		2024		Change
Consolidated sales	$	8,746	$	7,283	20	%	$	30,853	$	27,923	10	%
Net income attributable to shareholders		195		99	96	%		571		392	46	%
Net income per diluted share		3.75		1.86	101	%		10.93		7.29	50	%
Non-GAAP net income attributable to shareholders⁽¹⁾		228		158	44	%		576		568	1	%
Non-GAAP net income per diluted share		4.39		2.97	48	%		11.02		10.56	4	%


Global Components
	Quarter Ended						Year Ended
	December 31,		December 31,				December 31,		December 31,
(in millions)	2025		2024		Change		2025		2024		Change
Global components sales	$	5,882	$	4,814	22	%	$	21,501	$	19,983	8	%
Global components operating income, as reported		219		117	87	%		775		741	5	%
Global components non-GAAP operating income		219		173	26	%		781		827	(6	)%


Global Enterprise Computing Solutions
	Quarter Ended						Year Ended
	December 31,		December 31,				December 31,		December 31,
(in millions)	2025		2024		Change		2025		2024		Change
Global ECS sales	$	2,864	$	2,469	16	%	$	9,352	$	7,940	18	%
Global ECS operating income, as reported		188		160	17	%		426		410	4	%
Global ECS non-GAAP operating income		189		161	17	%		430		414	4	%

¹	A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
²	Europe, the Middle East, and Africa.


First-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
	Quarter Ended					Quarter Ended
	April 4,		March 29,			April 4,		December 31,
(in billions)	2026		2025		% Change	2026		2025		% Change

Global components sales, GAAP	$	5.75 - 6.15	$	4.78	20% - 29%	$	5.75 - 6.15	$	5.88	(2)% - 5%
Impact of changes in foreign currencies		—		0.15			—		0.01
Global components sales, constant currency	$	5.75 - 6.15	$	4.93	17% - 25%	$	5.75 - 6.15	$	5.89	(2)% - 4%

Global ECS sales, GAAP	$	2.20 - 2.40	$	2.04	8% - 18%	$	2.20 - 2.40	$	2.86	(23)% - (16)%
Impact of changes in foreign currencies		—		0.12			—		0.01
Global ECS sales, constant currency	$	2.20 - 2.40	$	2.16	2% - 12%	$	2.20 - 2.40	$	2.87	(23)% - (16)%


NON-GAAP EARNINGS RECONCILIATION
	Reported GAAP measure	expense	integration charges	Non-GAAP measure
Net income per diluted share	$2.13 to $2.33	$0.07	$0.50	$2.70 to $2.90


ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)

	Quarter Ended						Year Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
	(Unaudited)			(Unaudited)
Sales	$	8,746,430		$	7,282,877		$	30,852,935		$	27,923,324
Cost of sales		7,737,674			6,479,567			27,386,216			24,630,916
Gross profit		1,008,756			803,310			3,466,719			3,292,408
Operating expenses:
Selling, general, and administrative		639,455			547,511			2,390,627			2,217,940
Depreciation and amortization		33,985			39,638			137,750			162,994
Restructuring, integration, and other		41,239			21,058			116,119			142,917
		714,679			608,207			2,644,496			2,523,851
Operating income		294,077			195,103			822,223			768,557
Equity in earnings (losses) of affiliated companies		2,074			(544	)		3,198			1,368
Gain (loss) on investments, net		913			(4,070	)		109,888			(4,830	)
Loss on extinguishment of debt		—			—			—			(1,657	)
Post-retirement expense, net		(327	)		(1,393	)		(2,277	)		(4,285	)
Interest and other financing expense, net		(43,764	)		(60,392	)		(215,104	)		(269,834	)
Income before income taxes		252,973			128,704			717,928			489,319
Provision for income taxes		59,427			28,816			148,234			95,812
Consolidated net income		193,546			99,888			569,694			393,507
Noncontrolling interests		(1,058	)		680			(1,572	)		1,433
Net income attributable to shareholders	$	194,604		$	99,208		$	571,266		$	392,074
Net income per share:
Basic	$	3.78		$	1.88		$	11.03		$	7.36
Diluted	$	3.75		$	1.86		$	10.93		$	7.29
Weighted-average shares outstanding:
Basic		51,434			52,723			51,804			53,282
Diluted		51,895			53,214			52,255			53,797


ARROW ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS (In thousands except par value)

	December 31, 2025			December 31, 2024

ASSETS
Current assets:
Cash and cash equivalents	$	306,467		$	188,807
Accounts receivable, net		19,738,666			13,030,991
Inventories		5,081,863			4,709,706
Other current assets		533,035			471,909
Total current assets		25,660,031			18,401,413
Property, plant, and equipment, at cost:
Land		5,691			5,691
Buildings and improvements		199,433			194,061
Machinery and equipment		1,715,415			1,623,228
		1,920,539			1,822,980
Less: Accumulated depreciation and amortization		(1,445,889	)		(1,353,720	)
Property, plant, and equipment, net		474,650			469,260
Investments in affiliated companies		59,315			57,299
Intangible assets, net		77,022			96,706
Goodwill		2,120,071			2,055,295
Other assets		687,049			677,734
Total assets	$	29,078,138		$	21,757,707
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	17,383,796		$	11,047,470
Accrued expenses		1,461,261			1,238,714
Short-term borrowings, including current portion of long-term debt		341			349,978
Total current liabilities		18,845,398			12,636,162
Long-term debt		3,084,715			2,773,783
Other liabilities		489,326			516,234

Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2025 and 2024
Issued - 55,838 and 55,592 shares in 2025 and 2024, respectively		55,838			55,592
Capital in excess of par value		586,993			562,080
Treasury stock (4,768 and 3,420 shares in 2025 and 2024, respectively), at cost		(483,571	)		(328,078	)
Retained earnings		6,552,092			5,980,826
Accumulated other comprehensive loss		(126,640	)		(509,269	)
Total shareholders’ equity		6,584,712			5,761,151
Noncontrolling interests		73,987			70,377
Total equity		6,658,699			5,831,528
Total liabilities and equity	$	29,078,138		$	21,757,707


ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Quarter Ended
	December 31, 2025			December 31, 2024
Cash flows from operating activities:
Consolidated net income	$	193,546		$	99,888
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization		33,985			39,638
Amortization of stock-based compensation		7,435			4,444
Equity in (earnings) losses of affiliated companies		(2,074	)		544
Deferred income taxes		(41,367	)		(79,579	)
(Gain) loss on investments, net		(834	)		4,183
Other		428			1,134
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net		(4,049,915	)		(1,525,485	)
Inventories		(351,405	)		(241,622	)
Accounts payable		4,236,336			1,779,503
Accrued expenses		154,782			(330,408	)
Other assets and liabilities		19,033			574,224
Net cash provided by operating activities		199,950			326,464
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(27,381	)		(22,548	)
Cash consideration paid for acquired businesses, net of cash acquired		—			(18,909	)
Other		—			41
Net cash used for investing activities		(27,381	)		(41,416	)
Cash flows from financing activities:
Change in short-term and other borrowings		(10,444	)		(560,840	)
Proceeds from (repayments of) long-term bank borrowings, net		(35,403	)		410,189
Proceeds from exercise of stock options		25			—
Repurchases of common stock		(50,890	)		(50,790	)
Net cash used for financing activities		(96,712	)		(201,441	)
Effect of exchange rate changes on cash		16,998			(142,800	)
Net increase (decrease) in cash and cash equivalents		92,855			(59,193	)
Cash and cash equivalents at beginning of period		213,612			248,000
Cash and cash equivalents at end of period	$	306,467		$	188,807


ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Year Ended
	December 31, 2025			December 31, 2024
Cash flows from operating activities:
Consolidated net income	$	569,694		$	393,507
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization		137,750			162,994
Amortization of stock-based compensation		27,883			34,631
Equity in earnings of affiliated companies		(3,198	)		(1,368	)
Deferred income taxes		(36,182	)		(99,866	)
Loss on extinguishment of debt		—			1,657
(Gain) loss on investments, net		(110,269	)		5,068
Other		351			5,520
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net		(6,342,006	)		(1,013,091	)
Inventories		(286,180	)		421,063
Accounts payable		6,107,791			1,092,488
Accrued expenses		60,415			(140,871	)
Other assets and liabilities		(62,000	)		268,681
Net cash provided by operating activities		64,049			1,130,413
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(101,254	)		(92,703	)
Proceeds from sale of property, plant, and equipment		—			5,157
Cash consideration paid for acquired businesses, net of cash acquired		—			(34,834	)
Proceeds from settlement of net investment hedges		24,858			10,635
Proceeds from sale of investments in equity securities		100,000			—
Other		—			17,303
Net cash provided by (used for) investing activities		23,604			(94,442	)
Cash flows from financing activities:
Change in short-term and other borrowings		(592	)		(1,155,909	)
Proceeds from (repayments of) long-term bank borrowings, net		302,820			470,347
Redemption of notes		(350,000	)		(1,000,000	)
Net proceeds from note offering		—			989,564
Proceeds from exercise of stock options		3,452			5,354
Repurchases of common stock		(161,669	)		(265,142	)
Other		(148	)		(1,041	)
Net cash used for financing activities		(206,137	)		(956,827	)
Effect of exchange rate changes on cash		236,144			(108,390	)
Net increase (decrease) in cash and cash equivalents		117,660			(29,246	)
Cash and cash equivalents at beginning of year		188,807			218,053
Cash and cash equivalents at end of year	$	306,467		$	188,807


ARROW ELECTRONICS, INC. ECS Gross Billings (In thousands) (Unaudited)

Global Enterprise Computing Solutions - Gross Billings⁽¹⁾
	Quarter Ended						Year Ended
	December 31,		December 31,				December 31,		December 31,
	2025		2024		Change		2025		2024		Change
Gross billings:
Americas ECS	$	3,041,843	$	2,942,118	3	%	$	10,606,712	$	10,323,375	3	%
EMEA ECS		4,039,437		3,144,823	28	%		11,443,462		9,204,833	24	%
Global ECS	$	7,081,280	$	6,086,941	16	%	$	22,050,174	$	19,528,208	13	%

____________________
(1)	Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue.


ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited)

	Quarter Ended
	December 31, 2025		December 31, 2024		% Change

Consolidated sales, as reported	$	8,746,430	$	7,282,877	20.1	%
Impact of changes in foreign currencies		—		231,615
Consolidated sales, constant currency	$	8,746,430	$	7,514,492	16.4	%

Global components sales, as reported	$	5,882,277	$	4,813,760	22.2	%
Impact of changes in foreign currencies		—		108,900
Global components sales, constant currency	$	5,882,277	$	4,922,660	19.5	%

Americas components sales, as reported	$	1,959,548	$	1,603,710	22.2	%
Impact of changes in foreign currencies		—		808
Americas components sales, constant currency	$	1,959,548	$	1,604,518	22.1	%

EMEA components sales, as reported	$	1,460,298	$	1,262,320	15.7	%
Impact of changes in foreign currencies		—		105,656
EMEA components sales, constant currency	$	1,460,298	$	1,367,976	6.7	%

Asia components sales, as reported	$	2,462,431	$	1,947,730	26.4	%
Impact of changes in foreign currencies		—		2,436
Asia components sales, constant currency	$	2,462,431	$	1,950,166	26.3	%

Global ECS sales, as reported	$	2,864,153	$	2,469,117	16.0	%
Impact of changes in foreign currencies		—		122,715
Global ECS sales, constant currency	$	2,864,153	$	2,591,832	10.5	%

Americas ECS sales, as reported	$	1,246,108	$	1,162,227	7.2	%
Impact of changes in foreign currencies		—		825
Americas ECS sales, constant currency	$	1,246,108	$	1,163,052	7.1	%

EMEA ECS sales, as reported	$	1,618,045	$	1,306,890	23.8	%
Impact of changes in foreign currencies		—		121,890
EMEA ECS sales, constant currency	$	1,618,045	$	1,428,780	13.2	%

ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited)

	Year Ended
	December 31, 2025		December 31, 2024			% Change

Consolidated sales, as reported	$	30,852,935	$	27,923,324		10.5	%
Impact of changes in foreign currencies		—		398,799
Consolidated sales, constant currency	$	30,852,935	$	28,322,123		8.9	%

Global components sales, as reported	$	21,501,289	$	19,983,267		7.6	%
Impact of changes in foreign currencies		—		205,431
Global components sales, constant currency	$	21,501,289	$	20,188,698		6.5	%

Americas components sales, as reported	$	6,944,480	$	6,411,701		8.3	%
Impact of changes in foreign currencies		—		852
Americas components sales, constant currency	$	6,944,480	$	6,412,553		8.3	%

EMEA components sales, as reported	$	5,670,850	$	5,648,107		0.4	%
Impact of changes in foreign currencies		—		210,617
EMEA components sales, constant currency	$	5,670,850	$	5,858,724		(3.2	)%

Asia components sales, as reported	$	8,885,959	$	7,923,459		12.1	%
Impact of changes in foreign currencies		—		(6,038	)
Asia components sales, constant currency	$	8,885,959	$	7,917,421		12.2	%

Global ECS sales, as reported	$	9,351,646	$	7,940,057		17.8	%
Impact of changes in foreign currencies		—		193,368
Global ECS sales, constant currency	$	9,351,646	$	8,133,425		15.0	%

Americas ECS sales, as reported	$	4,230,746	$	4,067,160		4.0	%
Impact of changes in foreign currencies		—		(8,112	)
Americas ECS sales, constant currency	$	4,230,746	$	4,059,048		4.2	%

EMEA ECS sales, as reported	$	5,120,900	$	3,872,897		32.2	%
Impact of changes in foreign currencies		—		201,480
EMEA ECS sales, constant currency	$	5,120,900	$	4,074,377		25.7	%


ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited)

Three months ended December 31, 2025
	measure			expense		charges		Down ⁽¹⁾			tax items		Other⁽²⁾			measure
Operating income	$	294,077		$	4,764	$	41,239	$	(3,638	)	$	—	$	—		$	336,442
Income before income taxes		252,973			4,764		41,239		(3,638	)		—		(913	)		294,425
Provision for income taxes		59,427			1,163		8,523		(1,100	)		—		(219	)		67,794
Consolidated net income		193,546			3,601		32,716		(2,538	)		—		(694	)		226,631
Noncontrolling interests		(1,058	)		—		—		—			—		—			(1,058	)
Net income attributable to shareholders	$	194,604		$	3,601	$	32,716	$	(2,538	)	$	—	$	(694	)	$	227,689
Net income per diluted share⁽⁶⁾	$	3.75		$	0.07	$	0.63	$	(0.05	)	$	—	$	(0.01	)	$	4.39
Effective tax rate⁽⁷⁾		23.5	%														23.0	%


Three months ended December 31, 2024
	measure			expense		charges		Down ⁽¹⁾		tax items		Other⁽²⁾		measure
Operating income	$	195,103		$	7,219	$	21,058	$	50,344	$	—	$	—	$	273,724
Income before income taxes		128,704			7,219		21,058		50,344		—		4,070		211,395
Provision for income taxes		28,816			1,786		4,318		16,692		—		977		52,589
Consolidated net income		99,888			5,433		16,740		33,652		—		3,093		158,806
Noncontrolling interests		680			135		—		—		—		—		815
Net income attributable to shareholders	$	99,208		$	5,298	$	16,740	$	33,652	$	—	$	3,093	$	157,991
Net income per diluted share⁽⁶⁾	$	1.86		$	0.10	$	0.31	$	0.63	$	—	$	0.06	$	2.97
Effective tax rate⁽⁷⁾		22.4	%												24.9	%

ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited)

Year ended December 31, 2025
	measure			expense		charges		Down ⁽¹⁾			tax items ⁽³⁾			Other⁽⁴⁾			measure
Operating income	$	822,223		$	19,760	$	116,119	$	(10,266	)	$	—		$	172		$	948,008
Income before income taxes		717,928			19,760		116,119		(10,266	)		—			(109,716	)		733,825
Provision for income taxes		148,234			4,849		27,923		(3,199	)		8,143			(26,321	)		159,629
Consolidated net income		569,694			14,911		88,196		(7,067	)		(8,143	)		(83,395	)		574,196
Noncontrolling interests		(1,572	)		156		—		—			—			—			(1,416	)
Net income attributable to shareholders	$	571,266		$	14,755	$	88,196	$	(7,067	)	$	(8,143	)	$	(83,395	)	$	575,612
Net income per diluted share⁽⁶⁾	$	10.93		$	0.28	$	1.69	$	(0.14	)	$	(0.16	)	$	(1.60	)	$	11.02
Effective tax rate⁽⁷⁾		20.6	%															21.8	%


Year ended December 31, 2024
	measure			expense		charges		Down ⁽¹⁾		tax items		Other⁽⁵⁾		measure
Operating income	$	768,557		$	29,529	$	142,917	$	60,573	$	—	$	—	$	1,001,576
Income before income taxes		489,319			29,529		142,917		60,573		—		6,487		728,825
Provision for income taxes		95,812			7,348		35,138		19,139		—		1,557		158,994
Consolidated net income		393,507			22,181		107,779		41,434		—		4,930		569,831
Noncontrolling interests		1,433			541		—		—		—		—		1,974
Net income attributable to shareholders	$	392,074		$	21,640	$	107,779	$	41,434	$	—	$	4,930	$	567,857
Net income per diluted share⁽⁶⁾	$	7.29		$	0.40	$	2.00	$	0.77	$	—	$	0.09	$	10.56
Effective tax rate⁽⁷⁾		19.6	%												21.8	%

____________________
(1)	Includes write-downs (recoveries) of inventory related to the wind down of businesses.
(2)	Other includes gain (loss) on investments, net.
(3)	Includes impacts from tax settlements related to U.S. federal tax law changes enacted as part of the 2017 Tax Cuts and Jobs Act.
(4)	Other includes gain on investments, net, and employee severance and benefits costs not related to restructuring initiatives presented in cost of sales.
(5)	Other includes (gain) loss on investments, net and loss on extinguishment of debt.
(6)	The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.
(7)	The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.


ARROW ELECTRONICS, INC. SEGMENT INFORMATION (In thousands) (Unaudited)

	Quarter Ended						Year Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Sales:
Global components	$	5,882,277		$	4,813,760		$	21,501,289		$	19,983,267
Global ECS		2,864,153			2,469,117			9,351,646			7,940,057
Consolidated	$	8,746,430		$	7,282,877		$	30,852,935		$	27,923,324
Operating income (loss):
Global components (a)	$	219,158		$	116,910		$	774,706		$	741,273
Global ECS (b)		187,884			160,421			425,911			410,075
Segment operating income (loss)	$	407,042		$	277,331		$	1,200,617		$	1,151,348
Corporate operating expenses (c)		(112,965	)		(82,228	)		(378,394	)		(382,791	)
Consolidated	$	294,077		$	195,103		$	822,223		$	768,557

(a)	Global components operating income includes (recoveries) charges of $(3.6) million and $(10.3) million in inventory write-downs related to the wind down of a business for the fourth quarter and twelve months of 2025, respectively. Global components operating income includes charges of $50.3 million and $60.6 million in inventory write-downs related to the wind-down of businesses for the fourth quarter and twelve months ended of 2024, respectively.
(b)	During 2025, global ECS operating income includes $18.3 million in net losses related to under performance of the non-cancellable multi-year purchase obligations. During 2024, global ECS operating income includes a reversal of $20.0 million for aged receivables that were collected, related to the same customer, which was taken during the second quarter of 2024.
(c)	Corporate unallocated operating losses include restructuring, integration, and other charges of $41.2 million, $116.1 million for the fourth quarter and 12 months of 2025, respectively, and $21.0 million and $142.9 million for the fourth quarter and twelve months of 2024, respectively.


ARROW ELECTRONICS, INC. NON-GAAP SEGMENT RECONCILIATIONS (In thousands) (Unaudited)

	Quarter Ended						Year Ended
	December 31,			December 31,			December 31,			December 31,
		2025			2024			2025			2024
Global components gross profit, as reported	$	647,154		$	497,324		$	2,402,653		$	2,332,358
Impact of wind down to inventory		(3,638	)		50,344			(10,266	)		60,573
Other		—			—			172			—
Global components non-GAAP gross profit	$	643,516		$	547,668		$	2,392,559		$	2,392,931
Global components gross profit as a percentage of sales, as reported		11.0	%		10.3	%		11.2	%		11.7	%
Global components non-GAAP gross profit as a percentage of sales		10.9	%		11.4	%		11.1	%		12.0	%

Global ECS gross profit, as reported	$	361,602		$	305,986		$	1,064,066		$	960,050
Global ECS gross profit as a percentage of sales, as reported		12.6	%		12.4	%		11.4	%		12.1	%


	Quarter Ended						Year Ended
	December 31,			December 31,			December 31,			December 31,
		2025			2024			2025			2024
Global components operating income, as reported	$	219,158		$	116,910		$	774,706		$	741,273
Intangible assets amortization expense		3,837			6,162			16,058			25,296
Impact of wind down to inventory		(3,638	)		50,344			(10,266	)		60,573
Other		—			—			172			—
Global components non-GAAP operating income	$	219,357		$	173,416		$	780,670		$	827,142
Global components operating income as a percentage of sales, as reported		3.7	%		2.4	%		3.6	%		3.7	%
Global components non-GAAP operating income as a percentage of sales		3.7	%		3.6	%		3.6	%		4.1	%

Global ECS operating income, as reported	$	187,884		$	160,421		$	425,911		$	410,075
Intangible assets amortization expense		927			1,057			3,702			4,233
Global ECS non-GAAP operating income	$	188,811		$	161,478		$	429,613		$	414,308
Global ECS operating income as a percentage of sales, as reported		6.6	%		6.5	%		4.6	%		5.2	%
Global ECS non-GAAP operating income as a percentage of sales		6.6	%		6.5	%		4.6	%		5.2	%

Consolidated sales of $7.95 billion to $8.55 billion, with global components sales of $5.75 billion to $6.15 billion, and global enterprise computing solutions sales of $2.20 billion to $2.40 billion
Net income per share on a diluted basis of $2.13 to $2.33, and non-GAAP net income per share on a diluted basis of $2.70 to $2.90
Average tax rate in the range of 23 percent to 25 percent
Interest expense of approximately $60 million
Changes in foreign currencies to increase sales by approximately $263 million, and earnings per share on a diluted basis by $0.10 compared to the first quarter of 2025
Changes in foreign currencies to increase quarter-over-quarter growth in sales by $17 million and earnings per share on a diluted basis will have no impact compared to the fourth quarter of 2025