Arrow Electronics Inc

Latest Results (02.04.2026):

Arrow Electronics Inc's third quarter of 2023 results show a pullback vs. the prior year as end-market inventory normalizes: consolidated sales were $8.01 billion (down 14% y/y), GAAP net income was $199 million ($3.53 diluted EPS), and non‑GAAP net income was $233 million ($4.14 diluted EPS). Results included a meaningful legal settlement benefit and an accounts‑receivable reserve charge; operating cash flow was positive and the company continued share repurchases while maintaining multi‑billion dollar liquidity.

Key financials

Sales $8.01B (-14% y/y); GAAP net income $199M, $3.53 diluted EPS; non‑GAAP net income $233M, $4.14 diluted EPS. Consolidated gross margin 12.2% (down ~60 bps y/y); GAAP operating margin 4.2%, non‑GAAP operating margin 4.7%.

One‑time items and adjustments

Both GAAP and non‑GAAP EPS included a $0.87 per‑share benefit from cash received in a global components legal settlement and a $0.31 per‑share charge to increase AR reserves for a customer in the Enterprise Computing Solutions (ECS) business. Management presents non‑GAAP metrics excluding these and similar items.

Segment performance — Components

Global components sales ~ $6.25B (down ~14% y/y but slightly above prior guidance midpoint). Americas down ~24% y/y (normalizing from shortages); Asia down ~18% y/y; Europe up ~3% y/y. Components margins were pressured by softer volumes but benefited ~100 bps (reported) from the legal settlement.

Segment performance — Enterprise Computing Solutions (ECS)

ECS sales declined ~10% y/y overall; Americas down ~18% y/y while Europe rose ~2% y/y with strength in cybersecurity and infrastructure software. ECS operating margin ~3.1% (non‑GAAP ~3.2%), impacted by a $22M AR reserve charge.

Cash flow, capital returns and balance sheet

Operating cash flow was $322M in Q3 (YTD $419M). The company repurchased ~1.6M shares for ~$200M in the quarter and has ~$622M remaining authorization. Net debt ~$3.9B; total liquidity ~$2.3B (cash ~$333M).

Returns and working capital

Return on working capital (ROWC) was 18.4% (down ~1,130 bps y/y) and ROIC was 11.3% (down ~640 bps y/y), reflecting lower operating income and higher inventory levels as markets normalize.

Outlook — Fourth quarter 2023 guidance

Q4 sales guidance $7.50B–$8.10B. GAAP diluted EPS guidance $3.30–$3.50; non‑GAAP diluted EPS $3.61–$3.81 (assumes tax rate 23–25%). Currency is expected to modestly help y/y sales (~+$54M) and EPS (+$0.02) but modestly hurt q/q comparisons.