Avnet Reports First Quarter 2026 Financial Results

PHOENIX--( BUSINESS WIRE)--Avnet, Inc. (Nasdaq: AVT) today announced results for its first quarter ended September 27, 2025.

“In the first quarter, our sales and earnings exceeded our expectations, led by double-digit year-over-year sales growth in Farnell and Asia,” said Avnet Chief Executive Officer Phil Gallagher. “While uncertainty continues to impact the market, we remain optimistic about the increasingly positive signs of recovery. Our durable business model, coupled with our strong, diverse supplier line card and customer base, position Avnet to create long-term value for all our stakeholders.”

Fiscal First Quarter Key Financial Highlights:

Key Financial Metrics

($ in millions, except per share data)

First Quarter Results (GAAP)

Sep – 25

Sep – 24

Change Y/Y

Jun – 25

Change Q/Q

Sales

5,898.6

5,604.2

5.3

5,617.8

5.0

Operating Income

142.0

142.2

(0.1)

73.5

93.4

Operating Income Margin

2.4

2.5

(13)

bps

1.3

110

bps

Diluted Earnings Per Share

0.61

0.66

(7.6)

0.07

771.4

First Quarter Results (Non-GAAP) (1)

Sep – 25

Sep – 24

Change Y/Y

Jun – 25

Change Q/Q

Adjusted Operating Income

150.7

168.9

(10.8)

142.9

5.5

Adjusted Operating Income Margin

2.6

3.0

(46)

bps

2.5

bps

Adjusted Diluted Earnings Per Share

0.84

0.92

(8.7)

0.81

3.7

Segment and Geographical Mix

Sep – 25

Sep – 24

Change Y/Y

Jun – 25

Change Q/Q

Electronic Components (EC) Sales

5,499.7

5,257.1

4.6

5,231.3

5.1

EC Operating Income Margin

2.9

3.8

(86)

bps

3.0

(11)

bps

Farnell Sales

398.9

347.1

14.9

386.5

3.2

Farnell Operating Income Margin

4.3

0.5

375

bps

4.3

bps

Americas Sales

1,369.9

1,329.9

3.0

1,327.0

3.2

EMEA Sales

1,665.9

1,668.2

(0.1)

1,599.7

4.1

Asia Sales

2,862.8

2,606.1

9.9

2,691.1

6.4

(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 Second Quarter of Fiscal 2026 Ending on December 27, 2025

Guidance Range

Midpoint

Sales

$5.85B – $6.15B

$6.00B

Adjusted Diluted EPS (1)

$0.90 – $1.00

$0.95

(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 2% at the midpoint and assumes sequential sales growth in the Americas and Asia and flat sales in Europe.

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 first 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 and average currency exchange rates as shown in the table below:

Q2 Fiscal

2026

Q1 Fiscal

Q2 Fiscal

Guidance

2026

2025

Euro to U.S. Dollar

$1.16

$1.17

$1.07

GBP to U.S. Dollar

$1.33

$1.35

$1.28

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.

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 value 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)

First Quarters Ended

September 27,

September 28,

2025

2024

(Thousands, except per share data)

Sales

5,898,572

5,604,152

Cost of sales

5,283,807

4,996,785

Gross profit

614,765

607,367

Selling, general and administrative expenses

464,442

438,791

Restructuring, integration, and other expenses

8,291

26,351

Operating income

142,032

142,225

Other expense, net

(5,466

)

(3,043

)

Interest and other financing expenses, net

(59,762

)

(64,444

)

Income before taxes

76,804

74,738

Income tax expense

25,059

15,782

Net income

51,745

58,956

Earnings per share:

Basic

0.62

0.67

Diluted

0.61

0.66

Shares used to compute earnings per share:

Basic

82,996

88,092

Diluted

84,462

89,392

Cash dividends paid per common share

0.35

0.33

AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

September 27,

June 28,

2025

(Thousands)

ASSETS

Current assets:

Cash and cash equivalents

175,465

192,428

Receivables

4,503,478

4,327,450

Inventories

5,420,873

5,235,485

Prepaid and other current assets

227,168

263,374

Total current assets

10,326,984

10,018,737

Property, plant and equipment, net

665,980

667,247

Goodwill

818,109

837,031

Operating lease assets

200,621

201,896

Other assets

402,663

393,642

Total assets

12,414,357

12,118,553

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term debt

189,311

87,284

Accounts payable

3,688,866

3,487,419

Accrued expenses and other

440,913

497,154

Short-term operating lease liabilities

54,830

56,247

Total current liabilities

4,373,920

4,128,104

Long-term debt

2,795,948

2,574,729

Long-term operating lease liabilities

158,991

159,449

Other liabilities

237,397

244,776

Total liabilities

7,566,256

7,107,058

Shareholders’ equity

4,848,101

5,011,495

Total liabilities and shareholders’ equity

12,414,357

12,118,553

AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

First Quarters Ended

September 27,

September 28,

2025

2024

(Thousands)

Cash flows from operating activities:

Net income

51,745

58,956

Non-cash and other reconciling items:

Depreciation and amortization

16,839

19,883

Amortization of operating lease assets

13,934

13,926

Deferred income taxes

(5,868

)

(17,572

)

Stock-based compensation

9,724

10,987

Other, net

(13,439

)

19,337

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

Receivables

(192,583

)

(94,393

)

Inventories

(216,326

)

(29,230

)

Accounts payable

218,297

213,610

Accrued expenses and other, net

(26,907

)

(89,179

)

Net cash flows (used for) provided by operating activities

(144,584

)

106,325

Cash flows from financing activities:

Issuance of convertible notes, net of issuance costs

633,750

—

(Repayments) borrowings under accounts receivable securitization, net

(299,400

)

27,900

Repayments under senior unsecured credit facility, net

(290,861

)

(11,353

)

Borrowings under term loan

266,932

—

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

10,352

(824

)

Repurchases of common stock

(138,308

)

(99,995

)

Dividends paid on common stock

(28,464

)

(28,861

)

Other, net

1,137

3,766

Net cash flows provided by (used for) financing activities

155,138

(109,367

)

Cash flows from investing activities:

Purchases of property, plant and equipment

(24,589

)

(31,776

)

Other, net

330

Net cash flows used for investing activities

(24,509

)

(31,446

)

Effect of currency exchange rate changes on cash and cash equivalents

(3,008

)

(8,932

)

Cash and cash equivalents:

— decrease

(16,963

)

(43,420

)

— at beginning of period

192,428

310,941

— at end of period

175,465

267,521

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 2026

First Quarter

September 27, 2025

($ in thousands, except per share amounts)

GAAP operating income

142,032

Restructuring, integration, and other expenses

8,291

Amortization of intangible assets

364

Adjusted operating income

150,687

GAAP other expense, net

(5,466

)

Foreign currency loss

6,483

Adjusted other income, net

1,017

GAAP income before income taxes

76,804

Restructuring, integration, and other expenses

8,291

Amortization of intangible assets

364

Foreign currency loss

6,483

Adjusted income before income taxes

91,942

GAAP income tax expense

25,059

Restructuring, integration, and other expenses

2,452

Amortization of intangible assets

Foreign currency loss

1,535

Income tax expense items, net

(7,984

)

Adjusted income tax expense

21,147

GAAP net income

51,745

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

5,839

Amortization of intangible assets (net of tax)

279

Foreign currency loss (net of tax)

4,948

Income tax expense items, net

7,984

Adjusted net income

70,795

GAAP diluted earnings per share

0.61

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

0.07

Amortization of intangible assets (net of tax)

—

Foreign currency loss (net of tax)

0.06

Income tax expense items, net

0.10

Adjusted diluted EPS

0.84

Fiscal

Quarters Ended

Year

June 28,

March 29,

December 28,

September 28,

2025*

2025

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

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

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

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

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

Foreign currency loss (net of tax)

0.24

0.11

0.06

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 first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025.

Quarter Ended

September 27, 2025

Sales

Year-Year %

Sales

Change in

Year-Year

Constant

% Change

Currency

Avnet

5.3

3.6

Avnet by region

Americas

3.0

EMEA

(0.1

)

(5.6

)

Asia

9.9

9.7

Avnet by segment

4.6

3.0

Farnell

14.9

12.5

Segment Financial Information*

Quarters Ended

September 27,

September 28,

2025

2024

($ in millions, except margins and sales mix)

Electronic Components

Sales

5,499.7

5,257.1

Cost of goods sold

4,992.6

4,740.0

Gross profit

507.1

517.0

Gross profit margin

9.2

9.8

Operating income

159.0

197.4

Operating income margin

2.9

3.8

Farnell

Sales

398.9

347.1

Cost of goods sold

291.2

256.8

Gross profit

107.7

90.3

Gross profit margin

27.0

26.0

Operating income

17.1

1.9

Operating income margin

4.3

0.5

Total reportable segment operating income

176.1

199.3

Corporate expenses

(25.4

)

(30.3

)

Restructuring, integration, and other expenses

(8.3

)

(26.4

)

Amortization of acquired intangible assets and other

(0.4

)

(0.4

)

Avnet operating income

142.0

142.2

Sales by geographic area:

Americas

1,369.9

1,329.9

EMEA

1,665.9

1,668.2

Asia

2,862.8

2,606.1

Avnet sales

5,898.6

5,604.2

Sales Mix by geographic area:

Americas

23.2

23.7

EMEA

28.2

29.8

Asia

48.5

46.5

* 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 second quarter of fiscal 2026.

Low End of

High End of

Guidance Range

Adjusted diluted earnings per share guidance

0.90

1.00

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

(0.16

)

(0.08

)

GAAP diluted earnings per share guidance

0.74

0.92