Avnet Reports Third Quarter 2026 Financial Results

Avnet Reports Third Quarter 2026 Financial Results

Achieved record sales in Electronic Components

Sales growth of 34% year over year driven by strength in served markets across all regions

Sequential operating income grew more than two times sales

Sequential diluted EPS grew more than three times sales

PHOENIX–(BUSINESS WIRE)–
Avnet, Inc. (Nasdaq: AVT) today announced results for its third quarter ended March 28, 2026.

“Sales and earnings exceeded our expectations, with double-digit sales growth both sequentially and year over year. Our team is executing well, driving improved operating margins and leverage, supported by continued disciplined cost management and inventory optimization. The investments we have made in our capabilities and digital infrastructure are paying off,” said Avnet Chief Executive Officer Phil Gallagher. “We see the momentum building in our business, indicative of broadening strength across all regions in our core markets. Avnet is well-positioned to drive profitable growth and expect to continue progressing toward our prior peak margin levels.”

Fiscal Third Quarter Key Financial Highlights:

  • Sales of $7.1 billion, an increase of 34% year over year and 13% sequentially

    • Sequential and year-over-year sales growth across all EC regions and Farnell

    • Third consecutive quarter of double-digit year-over-year sales growth at Farnell

  • Diluted earnings per share of $1.14 increased 13% year over year and 52% sequentially

    • Adjusted diluted earnings per share of $1.48 increased 76% year over year and 41% sequentially

  • Operating income margin of 2.9% expanded 58 basis points sequentially

    • Adjusted operating income margin of 3.1% expanded 38 basis points sequentially

    • EC operating margin of 3.5% and second consecutive quarter of expansion

    • Farnell operating margin of 5.2% and sixth consecutive quarter of expansion

  • Used $54 million of cash flow for operations to support $800 million in sales growth

  • Return on working capital expanded more than 300 basis points sequentially

  • Returned $29 million to shareholders in dividends

  • Improved days of inventory to 77 days in the quarter, achieving near-term target of below 80 days

    • Improved days of inventory in the EC business to below 70 days in the quarter

Key Financial Metrics

($ in millions, except per share data)

Third Quarter Results (GAAP)

 

 

March – 26

 

March – 25

 

Change Y/Y

 

Dec – 25

 

Change Q/Q

Sales

 

$

7,119.8

 

 

$

5,315.4

 

 

34.0

%

 

$

6,319.0

 

 

12.7

%

Operating Income

 

$

205.5

 

 

$

143.3

 

 

43.5

%

 

$

146.2

 

 

40.6

%

Operating Income Margin

 

 

2.9

%

 

 

2.7

%

 

19

bps

 

 

2.3

%

 

58

bps

Diluted Earnings Per Share

 

$

1.14

 

 

$

1.01

 

 

12.9

%

 

$

0.75

 

 

52.0

%

Third Quarter Results (Non-GAAP)(1)

 

 

March – 26

 

March – 25

 

Change Y/Y

 

Dec – 25

 

Change Q/Q

Adjusted Operating Income

 

$

220.6

 

 

$

152.7

 

 

44.5

%

 

$

171.7

 

 

28.5

%

Adjusted Operating Income Margin

 

 

3.1

%

 

 

2.9

%

 

23

bps

 

 

2.7

%

 

38

bps

Adjusted Diluted Earnings Per Share

 

$

1.48

 

 

$

0.84

 

 

76.2

%

 

$

1.05

 

 

41.0

%

Segment and Geographical Mix

 

 

March – 26

 

March – 25

 

Change Y/Y

 

Dec – 25

 

Change Q/Q

Electronic Components (EC) Sales

 

$

6,665.1

 

 

$

4,948.7

 

 

34.7

%

 

$

5,891.9

 

 

13.1

%

EC Operating Income Margin

 

 

3.5

%

 

 

3.5

%

 

5

bps

 

 

3.2

%

 

36

bps

Farnell Sales

 

$

454.7

 

 

$

366.7

 

 

24.0

%

 

$

427.1

 

 

6.5

%

Farnell Operating Income Margin

 

 

5.2

%

 

 

3.0

%

 

224

bps

 

 

4.7

%

 

55

bps

Americas Sales

 

$

1,615.0

 

 

$

1,274.2

 

 

26.7

%

 

$

1,435.3

 

 

12.5

%

EMEA Sales

 

$

2,046.3

 

 

$

1,559.0

 

 

31.3

%

 

$

1,714.0

 

 

19.4

%

Asia Sales

 

$

3,458.5

 

 

$

2,482.2

 

 

39.3

%

 

$

3,169.7

 

 

9.1

%

 

(1)

 

A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release.

Outlook for the Fourth Quarter of Fiscal 2026 Ending on June 27, 2026

 

 

Guidance Range

 

Midpoint

Sales

 

$7.30B – $7.60B

 

$7.45B

Adjusted Diluted EPS(1)

 

$1.70 – $1.80

 

$1.75

 

(1)

 

A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release.

The above guidance implies sequential sales growth of approximately 5% at the midpoint and assumes sales growth across all Electronic Components regions.

The above guidance also excludes restructuring, integration and other expenses, foreign currency gains and losses, and certain income tax adjustments. The above guidance assumes similar interest expense to the third quarter of fiscal 2026 and an adjusted effective tax rate of between 21% and 25%. The above guidance assumes 83 million average diluted shares outstanding. The average currency exchange rates used for guidance are shown in the table below:

 

 

Q4 Fiscal

 

 

 

 

 

 

2026

 

Q3 Fiscal

 

Q4 Fiscal

 

 

Guidance

 

2026

 

2025

Euro to U.S. Dollar

 

$1.17

 

$1.17

 

$1.13

GBP to U.S. Dollar

 

$1.35

 

$1.35

 

$1.33

Today’s Conference Call and Webcast Details

Avnet will host a conference call and webcast today at 9:00 a.m. PT / Noon ET to discuss its financial results, provide a business update and answer questions.

  • Live conference call: 877-407-8112 (domestic) or 201-689-8840 (international)

  • Live webcast along with slides can be accessed via Avnet’s Investor Relations website at https://ir.avnet.com or by accessing the webcast directly at https://avt-q3-2026.open-exchange.net
  • An audio replay of the webcast will be available after the completion of the call and archived on the website for one year

Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations, and business of the Company. You can find many of these statements by looking for words like “believes,” “projected,” “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates,” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: geopolitical events and military conflicts; pandemics and other health-related crises; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors; relationships with key suppliers and allocations of products by suppliers; accounts receivable defaults; risks relating to the Company’s international sales and operations, including risks relating to repatriating cash, foreign currency fluctuations, inflation, duties and taxes, tariffs, sanctions and trade restrictions, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures, and investments; adverse effects on the Company’s supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers, and suppliers, including as a result of issues caused by military conflicts, terrorist attacks, natural and weather-related disasters, pandemics and health related crises, warehouse modernization, and relocation efforts; risks related to cyber security attacks, other privacy and security incidents, and information systems failures, including related to current or future implementations, integrations, and upgrades; general economic and business conditions (domestic, foreign, and global) affecting the Company’s operations and financial performance and, indirectly, the Company’s credit ratings, debt covenant compliance, liquidity, and access to financing; constraints on employee retention and hiring; and legislative or regulatory changes.

Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.

About Avnet

As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for more than a century. Through regional and specialized businesses around the world, we support customers and suppliers at every stage of the product lifecycle. We help companies adapt to change and accelerate the design and supply stages of product development. With a unique viewpoint from the center of the technology supply chain, Avnet is a trusted partner that solves complex design and supply chain issues so customers can realize revenue faster. Learn more about Avnet at www.avnet.com. (AVT_IR)

AVNET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarters Ended

 

Nine Months Ended

 

 

March 28,

 

March 29,

 

March 28,

 

March 29,

 

 

2026

 

2025

 

2026

 

2025

 

 

(Thousands, except per share data)

Sales

 

$

7,119,779

 

 

$

5,315,423

 

 

$

19,337,306

 

 

$

16,582,959

 

Cost of sales

 

 

6,380,718

 

 

 

4,727,570

 

 

 

17,320,442

 

 

 

14,791,688

 

Gross profit

 

 

739,061

 

 

 

587,853

 

 

 

2,016,864

 

 

 

1,791,271

 

Selling, general and administrative expenses

 

 

518,789

 

 

 

435,492

 

 

 

1,474,902

 

 

 

1,311,214

 

Restructuring, integration, and other expenses

 

 

14,737

 

 

 

9,110

 

 

 

48,199

 

 

 

39,255

 

Operating income

 

 

205,535

 

 

 

143,251

 

 

 

493,763

 

 

 

440,802

 

Other expense, net

 

 

(1,827

)

 

 

(3,992

)

 

 

(2,226

)

 

 

(9,680

)

Interest and other financing expenses, net

 

 

(63,138

)

 

 

(61,115

)

 

 

(184,259

)

 

 

(187,957

)

Income before taxes

 

 

140,570

 

 

 

78,144

 

 

 

307,278

 

 

 

243,165

 

Income tax expense (benefit)

 

 

46,238

 

 

 

(9,775

)

 

 

99,468

 

 

 

9,037

 

Net income

 

$

94,332

 

 

$

87,919

 

 

$

207,810

 

 

$

234,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.15

 

 

$

1.02

 

 

$

2.53

 

 

$

2.69

 

Diluted

 

$

1.14

 

 

$

1.01

 

 

$

2.49

 

 

$

2.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

82,014

 

 

 

86,014

 

 

 

82,152

 

 

 

86,984

 

Diluted

 

 

82,930

 

 

 

86,876

 

 

 

83,393

 

 

 

88,198

 

Cash dividends paid per common share

 

$

0.35

 

 

$

0.33

 

 

$

1.05

 

 

$

0.99

 

 

AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

March 28,

 

June 28,

 

 

2026

 

2025

 

 

(Thousands)

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

202,436

 

$

192,428

Receivables

 

 

5,502,259

 

 

 

4,327,450

 

Inventories

 

 

5,462,394

 

 

 

5,235,485

 

Prepaid and other current assets

 

 

217,677

 

 

 

263,374

 

Total current assets

 

 

11,384,766

 

 

 

10,018,737

 

Property, plant and equipment, net

 

 

651,041

 

 

 

667,247

 

Goodwill

 

 

817,042

 

 

 

837,031

 

Operating lease assets

 

 

216,815

 

 

 

201,896

 

Other assets

 

 

419,630

 

 

 

393,642

 

Total assets

 

$

13,489,294

 

 

$

12,118,553

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

$

470,090

 

 

$

87,284

 

Accounts payable

 

 

4,625,893

 

 

 

3,487,419

 

Accrued expenses and other

 

 

516,679

 

 

 

497,154

 

Short-term operating lease liabilities

 

 

50,779

 

 

 

56,247

 

Total current liabilities

 

 

5,663,441

 

 

 

4,128,104

 

Long-term debt

 

 

2,472,813

 

 

 

2,574,729

 

Long-term operating lease liabilities

 

 

178,810

 

 

 

159,449

 

Other liabilities

 

 

220,893

 

 

 

244,776

 

Total liabilities

 

 

8,535,957

 

 

 

7,107,058

 

Shareholders’ equity

 

 

4,953,337

 

 

 

5,011,495

 

Total liabilities and shareholders’ equity

 

$

13,489,294

 

 

$

12,118,553

 

 

AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

March 28,

 

March 29,

 

 

2026

 

2025

 

 

(Thousands)

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

207,810

 

 

$

234,128

 

 

 

 

 

 

 

 

Non-cash and other reconciling items:

 

 

 

 

 

 

Depreciation and amortization

 

 

54,229

 

 

 

53,307

 

Amortization of operating lease assets

 

 

43,295

 

 

 

39,963

 

Deferred income taxes

 

 

(21,382

)

 

 

(81,950

)

Stock-based compensation

 

 

35,726

 

 

 

30,449

 

Other, net

 

 

(13,380

)

 

 

26,710

 

Changes in (net of effects from businesses acquired and divested):

 

 

 

 

 

 

Receivables

 

 

(1,210,690

)

 

 

310,440

 

Inventories

 

 

(282,229

)

 

 

217,568

 

Accounts payable

 

 

1,174,814

 

 

 

(8,785

)

Accrued expenses and other, net

 

 

21,625

 

 

 

(236,802

)

Net cash flows provided by operating activities

 

 

9,818

 

 

 

585,028

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Issuance of convertible notes, net of issuance costs

 

 

633,750

 

 

 

 

(Repayments) borrowings under accounts receivable securitization, net

 

 

(226,500

)

 

 

84,900

 

Repayments under senior unsecured credit facility, net

 

 

(409,505

)

 

 

(418,591

)

Borrowings (repayments) under bank credit facilities and other debt, net

 

 

18,787

 

 

 

63,432

 

Borrowings under term loan

 

 

268,053

 

 

 

 

Repurchases of common stock

 

 

(138,308

)

 

 

(253,490

)

Dividends paid on common stock

 

 

(85,639

)

 

 

(85,645

)

Other, net

 

 

(2,411

)

 

 

(4,297

)

Net cash flows provided by (used for) financing activities

 

 

58,227

 

 

 

(613,691

)

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(56,814

)

 

 

(87,874

)

Other, net

 

 

1,003

 

 

 

10,353

 

Net cash flows used for investing activities

 

 

(55,811

)

 

 

(77,521

)

 

 

 

 

 

 

 

Effect of currency exchange rate changes on cash and cash equivalents

 

 

(2,226

)

 

 

(15,845

)

Cash and cash equivalents:

 

 

 

 

 

 

— increase (decrease)

 

 

10,008

 

 

 

(122,029

)

— at beginning of period

 

 

192,428

 

 

 

310,941

 

— at end of period

 

$

202,436

 

 

$

188,912

 

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted other income (expense), (iii) adjusted income before income taxes, (iv) adjusted income tax expense (benefit), and (v) adjusted diluted earnings per share.

There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company’s results of operations, results excluding this impact are referred to as “constant currency.” Management believes sales in constant currency is a useful measure for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.

Management believes that operating income adjusted for restructuring, integration and other expenses, and amortization of acquired intangible assets, is a useful measure to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, and amortization of acquired intangible assets.

Management also believes income tax expense (benefit), net income and diluted earnings per share adjusted for the impact of the items described above, foreign currency gains and losses and certain items impacting income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the effective tax rate based upon the expected long-term adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and diluted earnings per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public.

Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income divided by sales and the adjusted effective income tax rate, which is defined as adjusted income tax expense divided by adjusted income before income taxes.

Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.

 

 

Fiscal

 

Quarters Ended

 

 

Year to Date

 

March 28,

 

December 27,

 

September 27,

 

 

2026*

 

2026

 

2025

 

2025

 

 

($ in thousands, except per share amounts)

GAAP operating income

 

$

493,763

 

 

$

205,535

 

 

$

146,196

 

 

$

142,032

 

Restructuring, integration, and other expenses

 

 

48,199

 

 

 

14,737

 

 

 

25,171

 

 

 

8,291

 

Amortization of intangible assets

 

 

1,092

 

 

 

364

 

 

 

364

 

 

 

364

 

Adjusted operating income

 

 

543,054

 

 

 

220,636

 

 

 

171,731

 

 

 

150,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other income (expense), net

 

$

(2,226

)

 

$

(1,827

)

 

$

5,067

 

 

$

(5,466

)

Foreign currency loss (gain)

 

 

6,988

 

 

 

3,444

 

 

 

(2,939

)

 

 

6,483

 

Adjusted other income, net

 

 

4,762

 

 

 

1,617

 

 

 

2,128

 

 

 

1,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

307,278

 

 

$

140,570

 

 

$

89,905

 

 

$

76,804

 

Restructuring, integration, and other expenses

 

 

48,199

 

 

 

14,737

 

 

 

25,171

 

 

 

8,291

 

Amortization of intangible assets

 

 

1,092

 

 

 

364

 

 

 

364

 

 

 

364

 

Foreign currency loss (gain)

 

 

6,988

 

 

 

3,444

 

 

 

(2,939

)

 

 

6,483

 

Adjusted income before income taxes

 

 

363,557

 

 

 

159,115

 

 

 

112,501

 

 

 

91,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax expense

 

$

99,468

 

 

$

46,238

 

 

$

28,172

 

 

$

25,059

 

Restructuring, integration, and other expenses

 

 

15,218

 

 

 

5,901

 

 

 

6,865

 

 

 

2,452

 

Amortization of intangible assets

 

 

257

 

 

 

86

 

 

 

86

 

 

 

85

 

Foreign currency loss (gain)

 

 

1,202

 

 

 

758

 

 

 

(1,091

)

 

 

1,535

 

Income tax expense items, net

 

 

(32,527

)

 

 

(16,386

)

 

 

(8,157

)

 

 

(7,984

)

Adjusted income tax expense

 

 

83,618

 

 

 

36,597

 

 

 

25,875

 

 

 

21,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

207,810

 

 

$

94,332

 

 

$

61,733

 

 

$

51,745

 

Restructuring, integration, and other expenses (net of tax)

 

32,981

 

 

 

8,836

 

 

 

18,306

 

 

 

5,839

 

Amortization of intangible assets (net of tax)

 

 

835

 

 

 

278

 

 

 

278

 

 

 

279

 

Foreign currency loss (gain) (net of tax)

 

 

5,786

 

 

 

2,686

 

 

 

(1,848

)

 

 

4,948

 

Income tax expense items, net

 

 

32,527

 

 

 

16,386

 

 

 

8,157

 

 

 

7,984

 

Adjusted net income

 

 

279,939

 

 

 

122,518

 

 

 

86,626

 

 

 

70,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

2.49

 

 

$

1.14

 

 

$

0.75

 

 

$

0.61

 

Restructuring, integration, and other expenses (net of tax)

 

0.40

 

 

 

0.11

 

 

 

0.22

 

 

 

0.07

 

Amortization of intangible assets (net of tax)

 

 

0.01

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

Foreign currency loss (gain) (net of tax)

 

 

0.07

 

 

 

0.03

 

 

 

(0.02

)

 

 

0.06

 

Income tax expense items, net

 

 

0.39

 

 

 

0.20

 

 

 

0.10

 

 

 

0.10

 

Adjusted diluted EPS

 

 

3.36

 

 

 

1.48

 

 

 

1.05

 

 

 

0.84

 

 

* May not foot/cross foot due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal

 

Quarters Ended

 

 

Year

 

June 28,

 

March 29,

 

December 28,

 

September 28,

 

 

2025*

 

2025

 

2025

 

2024

 

2024

 

 

($ in thousands, except per share amounts)

GAAP operating income

 

$

514,254

 

 

$

73,452

 

 

$

143,251

 

 

$

155,327

 

 

$

142,225

 

Restructuring, integration, and other expenses

 

 

108,316

 

 

 

69,061

 

 

 

9,110

 

 

 

3,794

 

 

 

26,351

 

Amortization of intangible assets

 

 

1,463

 

 

 

364

 

 

 

364

 

 

 

366

 

 

 

368

 

Adjusted operating income

 

 

624,033

 

 

 

142,877

 

 

 

152,725

 

 

 

159,487

 

 

 

168,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other expense, net

 

$

(17,283

)

 

$

(7,604

)

 

$

(3,992

)

 

$

(2,645

)

 

$

(3,043

)

Foreign currency loss

 

 

29,631

 

 

 

12,811

 

 

 

6,933

 

 

 

5,104

 

 

 

4,783

 

Adjusted other income, net

 

 

12,348

 

 

 

5,207

 

 

 

2,941

 

 

 

2,459

 

 

 

1,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

250,569

 

 

$

7,404

 

 

$

78,144

 

 

$

90,283

 

 

$

74,738

 

Restructuring, integration, and other expenses

 

 

108,316

 

 

 

69,061

 

 

 

9,110

 

 

 

3,794

 

 

 

26,351

 

Amortization of intangible assets

 

 

1,463

 

 

 

364

 

 

 

364

 

 

 

366

 

 

 

368

 

Foreign currency loss

 

 

29,631

 

 

 

12,811

 

 

 

6,933

 

 

 

5,104

 

 

 

4,783

 

Adjusted income before income taxes

 

 

389,979

 

 

 

89,640

 

 

 

94,551

 

 

 

99,547

 

 

 

106,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax expense (benefit)

 

$

10,352

 

 

$

1,315

 

 

$

(9,775

)

 

$

3,030

 

 

$

15,782

 

Restructuring, integration, and other expenses

 

 

20,671

 

 

 

10,397

 

 

 

2,475

 

 

 

1,142

 

 

 

6,657

 

Amortization of intangible assets

 

 

345

 

 

 

86

 

 

 

86

 

 

 

86

 

 

 

87

 

Foreign currency loss

 

 

8,800

 

 

 

3,796

 

 

 

1,762

 

 

 

1,630

 

 

 

1,612

 

Income tax expense items, net

 

 

49,527

 

 

 

5,023

 

 

 

27,199

 

 

 

17,007

 

 

 

298

 

Adjusted income tax expense

 

 

89,695

 

 

 

20,617

 

 

 

21,747

 

 

 

22,895

 

 

 

24,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

240,217

 

 

$

6,089

 

 

$

87,919

 

 

$

87,253

 

 

$

58,956

 

Restructuring, integration, and other expenses (net of tax)

 

 

87,645

 

 

 

58,664

 

 

 

6,635

 

 

 

2,652

 

 

 

19,694

 

Amortization of intangible assets (net of tax)

 

 

1,117

 

 

 

278

 

 

 

278

 

 

 

280

 

 

 

281

 

Foreign currency loss (net of tax)

 

 

20,831

 

 

 

9,015

 

 

 

5,171

 

 

 

3,474

 

 

 

3,171

 

Income tax expense items, net

 

 

(49,527

)

 

 

(5,023

)

 

 

(27,199

)

 

 

(17,007

)

 

 

(298

)

Adjusted net income

 

 

300,283

 

 

 

69,023

 

 

 

72,804

 

 

 

76,652

 

 

 

81,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

2.75

 

 

$

0.07

 

 

$

1.01

 

 

$

0.99

 

 

$

0.66

 

Restructuring, integration, and other expenses (net of tax)

 

 

1.01

 

 

 

0.69

 

 

 

0.08

 

 

 

0.03

 

 

 

0.22

 

Amortization of intangible assets (net of tax)

 

 

0.01

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

Foreign currency loss (net of tax)

 

 

0.24

 

 

 

0.11

 

 

 

0.06

 

 

 

0.04

 

 

 

0.04

 

Income tax expense items, net

 

 

(0.57

)

 

 

(0.06

)

 

 

(0.31

)

 

 

(0.19

)

 

 

(0.00

)

Adjusted diluted EPS

 

 

3.44

 

 

 

0.81

 

 

 

0.84

 

 

 

0.87

 

 

 

0.92

 

 

* May not foot/cross foot due to rounding.

Sales in Constant Currency

The following table presents the percentage change in sales and the percentage change in sales in constant currency for the third quarter and first nine months of fiscal year 2026 compared to the third quarter and first nine months of fiscal year 2025.

 

 

Quarter Ended

 

Nine Months Ended

 

 

March 28, 2026

 

March 28, 2026

 

 

 

 

Sales

 

 

 

Sales

 

 

 

 

Sales

 

 

 

 

Year-Year %

 

 

 

Sequential %

 

 

 

 

Year-Year %

 

 

Sales

 

Change in

 

Sales

 

Change in

 

Sales

 

Change in

 

 

Year-Year

 

Constant

 

Sequential

 

Constant

 

Year-Year

 

Constant

 

 

% Change

 

Currency

 

% Change

 

Currency

 

% Change

 

Currency

Avnet

 

34.0

%

 

30.2

%

 

12.7

%

 

12.4

%

 

16.6

%

 

14.2

%

Avnet by region

   

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

26.7

%

 

26.7

%

 

12.5

%

 

12.5

%

 

11.3

%

 

11.3

%

EMEA

 

31.3

%

 

18.9

%

 

19.4

%

 

18.5

%

 

12.8

%

 

4.5

%

Asia

 

39.3

%

 

39.3

%

 

9.1

%

 

9.2

%

 

21.7

%

 

21.7

%

Avnet by segment

   

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

34.7

%

 

31.2

%

 

13.1

%

 

12.9

%

 

16.3

%

 

14.0

%

Farnell

 

24.0

%

 

17.9

%

 

6.5

%

 

5.5

%

 

20.9

%

 

17.0

%

Segment Financial Information*

 

 

Quarters Ended

 

Nine Months Ended

 

 

March 28,

 

March 29,

 

March 28,

 

March 29,

 

 

2026

 

2025

 

2026

 

2025

 

 

($ in millions, except margins and sales mix)

Electronic Components

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

6,665.1

 

 

$

4,948.7

 

 

$

18,056.6

 

 

$

15,523.6

 

Cost of goods sold

 

$

6,049.9

 

 

$

4,459.5

 

 

$

16,385.6

 

 

$

14,009.6

 

Gross profit

 

$

615.2

 

 

$

489.2

 

 

$

1,671.1

 

 

$

1,514.1

 

Gross profit margin

 

 

9.2

%

 

 

9.9

%

 

 

9.3

%

 

 

9.8

%

Operating income

 

$

235.2

 

 

$

172.2

 

 

$

581.3

 

 

$

551.2

 

Operating income margin

 

 

3.5

%

 

 

3.5

%

 

 

3.2

%

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farnell

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

454.7

 

 

$

366.7

 

 

$

1,280.7

 

 

$

1,059.4

 

Cost of goods sold

 

$

330.8

 

 

$

268.0

 

 

$

934.8

 

 

$

782.1

 

Gross profit

 

$

123.8

 

 

$

98.6

 

 

$

345.8

 

 

$

277.2

 

Gross profit margin

 

 

27.2

%

 

 

26.9

%

 

 

27.0

%

 

 

26.2

%

Operating income

 

$

23.8

 

 

$

11.0

 

 

$

60.9

 

 

$

16.3

 

Operating income margin

 

 

5.2

%

 

 

3.0

%

 

 

4.8

%

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reportable segment operating income

 

$

259.0

 

 

$

183.2

 

 

$

642.2

 

 

$

567.5

 

Corporate selling, general and administrative expenses

 

 

(38.4)

 

 

 

(30.4)

 

 

 

(99.1)

 

 

 

(86.3)

 

Restructuring, integration, and other expenses

 

 

(14.7)

 

 

 

(9.1)

 

 

 

(48.2)

 

 

 

(39.3)

 

Amortization of acquired intangible assets

 

 

(0.4)

 

 

 

(0.4)

 

 

 

(1.1)

 

 

 

(1.1)

 

Avnet operating income

 

$

205.5

 

 

$

143.3

 

 

$

493.8

 

 

$

440.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,615.0

 

 

$

1,274.2

 

 

$

4,420.1

 

 

$

3,972.9

 

EMEA

 

 

2,046.3

 

 

 

1,559.0

 

 

 

5,426.2

 

 

 

4,810.0

 

Asia

 

 

3,458.5

 

 

 

2,482.2

 

 

 

9,491.0

 

 

 

7,800.1

 

Avnet sales

 

$

7,119.8

 

 

$

5,315.4

 

 

$

19,337.3

 

 

$

16,583.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

22.7

%

 

 

24.0

%

 

 

22.9

%

 

 

24.0

%

EMEA

 

 

28.7

%

 

 

29.3

%

 

 

28.0

%

 

 

29.0

%

Asia

 

 

48.6

%

 

 

46.7

%

 

 

49.1

%

 

 

47.0

%

 

* May not foot due to rounding.

Guidance Reconciliation

The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the fourth quarter of fiscal 2026.

 

 

Low End of

 

High End of

 

 

Guidance Range

 

Guidance Range

Adjusted diluted earnings per share guidance

 

$

1.70

 

 

$

1.80

 

Restructuring, integration, and other expenses (net of tax)

 

 

(0.50

)

 

 

(0.35

)

GAAP diluted earnings per share guidance

 

$

1.20

 

 

$

1.45

 

 

Investor Relations Contact

[email protected]

Media Relations Contact

Liam Creighton, 480-643-5027

[email protected]

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Supply Chain Management Semiconductor Retail Technology Other Technology Hardware

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