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

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429366016/en/

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Media Relations Contact

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Avnet Reports Third Quarter 2026 Financial Results