Research Reports

Total revenue of $9.5B, up 39% YoY (34% constant currency) (CFO). Non-GAAP operating margin expanded 160 bps YoY to 4.2% (CEO).
Global Components sales: $6.6B, up $758M sequentially, up 13% QoQ. Non-GAAP operating income $365M (up 67% sequentially), operating margin 5.5% (up 180 bps sequentially) (CFO).
Global ECS sales: $2.8B, up ~$800M YoY (up 39% YoY, 31% constant currency). Total ECS billings $6.4B, up 39% YoY. Non-GAAP operating margins declined 10 bps YoY (CFO).
Consolidated non-GAAP gross margin: 11.5%, up 20 bps YoY (CFO). Non-GAAP OPEX $687M, up $95M YoY; OPEX as % of gross profit declined 13.6 ppts YoY to 63.2% (CFO).
Non-GAAP diluted EPS: $5.22, up 190% YoY (CEO/CFO).
Net working capital: declined ~$490M sequentially to $6.9B. Inventory $5.7B (up ~$640M sequentially); half of build related to data center activity in Arrow Intelligence Solutions (CFO).
Cash flow from operations: $700M (CFO). Gross debt declined $619M sequentially to $2.5B (CFO).
Return on working capital: 23.1% (up 11.8 ppts YoY). Return on invested capital: 13.4% (up 7 ppts YoY) (CFO).
Share repurchases: $25M in Q1 (CFO).
Book-to-bill ratios: well above parity in all 3 operating regions; backlog building into Q3 and Q4 (CEO).
IP&E (interconnect, passive, electromechanical): record revenue in Q1, surpassed $1B for first time (CFO).

Total sales: $9.15B – $9.75B (midpoint up 25% YoY) (CFO).
Global Components sales: $6.8B – $7.2B (midpoint sequential growth 5%) (CFO).
Global ECS sales: $2.35B – $2.55B (midpoint up 7% YoY) (CFO).
Non-GAAP diluted EPS: $4.32 – $4.52 (CFO).
Tax rate: 23% – 25% (CFO).
Interest expense: ~$60M (CFO).

"We started 2026 with very strong results in the first quarter. Total revenue of $9.5 billion increased 39% year-over-year while operating margin expanded 160 basis points year-over-year to 4.2%." (CEO)
"The recovery is broad-based across geographies, industry verticals and customer mix, driven by customer demand." (CEO)
"Book-to-bill ratios improved further, and we currently are at healthy levels sitting well above parity in all 3 operating regions." (CEO)
"Our cost structure is becoming more efficient, which we expect to drive meaningful operating leverage as the market progresses." (CFO)
"We are confident in the operational momentum of the business... we believe that operating leverage that we have created will drive significant earnings power." (CFO)

Topic: ECS strength drivers, Q2 guide, and hyperscaler value-added services contribution
Key points:
- ECS growth driven by cloud/AI/software/infrastructure (same trend as prior quarters); Q1 saw extra growth from storage/compute due to customers ordering ahead to avoid price increases and ensure delivery, plus 4 extra days at quarter-end.
- Q2 and Q3 expected to be “more or less normal quarters”; the 4 days will only compensate in Q4; hardware growth expected to continue through the year.
- One hyperscaler accelerated a data center build into Q1, boosting supply chain services revenue unexpectedly; value-added services were ~30% of operating income last year, ticking down slightly in Q1 due to overall business growth.
Mgmt stance: Neutral – growth trends are consistent, but Q1 had one-time pull-in from hyperscaler and extra days; forward quarters normalized.

Topic: Margin bridge from Q1 (5.5%) to Q2, value-added services demand, and risk of preordering/double ordering
Key points:
- Q1 operating margin of 5.5% driven by: Western mass market recovery (industrial, transportation, aerospace/defense), value-added services push, and fixed costs flat to down; volume growth (not price) drove leverage.
- Q2 component margins expected to step down due to Asia mix, supply chain services step down, and higher OpEx; but still “very strong” operating margins.
- 4 extra days in ECS worth several hundred million dollars in billings; net revenue benchmark ~50%, with margin applied; this benefit does not repeat in Q2.
- Value-added services: Q1 growth was not a pull-in of demand but “extra growth”; Q2 outlook assumes a lower number for supply chain services but still significant contributor.
- On preordering risk: management monitors order flows; if a customer ordering at rate 10 suddenly places an order… (cut off in input, no further data).
Mgmt stance: Neutral – Q1 margin was elevated by mix and one-time factors; Q2 steps down but remains strong; no evidence of pull-in in value-added services, but monitoring order flows for preordering risk.