AVNET INC (AVT): Results of Operations and Financial Condition
AVNET INC (AVT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results Record quarterly sales of $8.3 billion with nearly 50% year-over-year sales growth and significant margin expansion Electronic Components operating margin of 4.1% on record sales of $7.8 billion
How this was made
The 30-second read
Why it matters
AVT’s disclosed record sales, sharply higher EPS (GAAP and adjusted), improved operating margins, and quantified Q1 guidance provide a concrete basis for repricing near-term expectations.
Market read
The filing is a primary earnings-and-guidance disclosure with specific ranges for sales and adjusted EPS, making it actionable for short-term positioning.
What to watch
Inventory days improved (down to 71), but traders should watch whether working-capital benefits persist and whether currency assumptions (EUR and GBP rates) swing results versus the guidance framework.
Record quarterly sales of $8.3 billion with nearly 50% year-over-year sales growth and significant margin expansion
Fourth-quarter sales rose 47.7% year over year and 16.5% sequentially, while GAAP operating income rose 214.5% and adjusted diluted EPS rose 181.5%. Both reportable segments and all geographic regions grew year over year and sequentially, and first-quarter fiscal 2027 guidance calls for additional sequential sales growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, fourth quarterGAAP | $8,295.4 million | 16.5% | 47.7% |
| Gross profit, fourth quarterGAAP | $865,032 thousand | – | – |
| Operating income, fourth quarterGAAP | $231.0 million | 12.4% | 214.5% |
| Operating income margin, fourth quarterGAAP | 2.8% | (11) bps | 147 bps |
| Net income, fourth quarterGAAP | $126,579 thousand | – | – |
| Diluted earnings per share, fourth quarterGAAP | $1.49 | 30.7% | 2,028.6% |
| Adjusted operating income, fourth quarternon-GAAP | $317.9 million | 44.1% | 122.5% |
| Adjusted operating income margin, fourth quarternon-GAAP | 3.8% | 73 bps | 129 bps |
| Adjusted net income, fourth quarternon-GAAP | $193,081 thousand | – | – |
| Adjusted diluted earnings per share, fourth quarternon-GAAP | $2.28 | 54.1% | 181.5% |
| Inventory days, fourth quarterother | 71 | declined by 6 days | – |
| Sales, fiscal 2026GAAP | $27,632.7 million | – | 24.5% |
| Gross profit, fiscal 2026GAAP | $2,881,896 thousand | – | – |
| Operating income, fiscal 2026GAAP | $724.8 million | – | – |
| Operating income margin, fiscal 2026GAAP | 2.6% | – | – |
| Net income, fiscal 2026GAAP | $334,389 thousand | – | – |
| Diluted earnings per share, fiscal 2026GAAP | $4.01 | – | – |
| Adjusted operating income, fiscal 2026non-GAAP | $860,945 thousand | – | – |
| Adjusted operating income margin, fiscal 2026non-GAAP | 3.1% | – | 31 bps |
| Adjusted net income, fiscal 2026non-GAAP | $473,020 thousand | – | – |
| Adjusted diluted earnings per share, fiscal 2026non-GAAP | $5.67 | – | 65% |
| Inventory days, fiscal 2026other | 81 | – | decreased 18 days |
| Cash dividends paid per common share, fiscal 2026GAAP | $1.40 | – | – |
| Net cash flows used for operating activities, fiscal 2026GAAP | $(280,925) thousand | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electronic Components (EC)Record sales; operating income margin was 4.1%, compared with 3.0% in the prior-year quarter and 3.5% in the prior quarter. | $7,795.3 million | 17.0% | 49.0% |
| FarnellRecord sales; operating income margin was 9.0%, compared with 4.3% in the prior-year quarter and 5.2% in the prior quarter. | $500.1 million | 10.0% | 29.4% |
| AmericasSales growth was reported across all EC regions and Farnell. | $2,060.7 million | 27.6% | 55.3% |
| EMEASales growth was reported across all EC regions and Farnell. | $2,298.9 million | 12.4% | 43.7% |
| AsiaSales growth was reported across all EC regions and Farnell. | $3,935.8 million | 13.8% | 46.3% |
first quarter of fiscal 2027 ending on October 3, 2026 outlook
- Revenue$9.00B – $9.30B
- Tax ratebetween 21% and 25%
- NoteSales midpoint: $9.15B
- NoteAdjusted diluted EPS: $2.80 – $2.90
- NoteAdjusted diluted EPS midpoint: $2.85
- NoteGAAP diluted earnings per share guidance: $2.57 – $2.77
- NoteApproximately 10% sequential sales growth at the midpoint
- NoteAssumes sales growth across all Electronic Components regions and Farnell
- NoteAssumes similar interest expense to the fourth quarter of fiscal 2026
- NoteAssumes 85 million average diluted shares outstanding
- NoteEuro to U.S. Dollar: $1.15
- NoteGBP to U.S. Dollar: $1.34
Capital returns
- Returned $29 million to shareholders in dividends in the fourth quarter.
- Returned $138 million to shareholders from share repurchases in fiscal 2026, representing 3.2% of shares outstanding.
- Returned $114 million to shareholders in dividends in fiscal 2026.
- Repurchases of common stock were $(138,308) thousand in fiscal 2026, compared with $(303,490) thousand in fiscal 2025.
- Dividends paid on common stock were $(114,361) thousand in fiscal 2026, compared with $(113,310) thousand in fiscal 2025.
What drove it
- Fourth-quarter sales increased across all EC regions and Farnell sequentially and year over year.
- Fourth-quarter reported sales growth was 47.7% year over year and 16.5% sequentially; constant-currency sales growth was 47.1% year over year and 16.8% sequentially.
- Electronic Components fourth-quarter operating income margin expanded 107 bps year over year and 54 bps sequentially to 4.1%.
- Farnell fourth-quarter operating income margin expanded 468 bps year over year and 373 bps sequentially to 9.0%.
- Farnell gross profit margin was 29.6% in the fourth quarter, compared with 25.7% in the prior-year quarter.
- Management cited improving demand and accelerating mass market activity.
Concerns
- Fiscal 2026 net cash flows used for operating activities were $(280,925) thousand, following $724,504 thousand of cash provided in fiscal 2025.
- Receivables increased to $6,882,965 thousand from $4,327,450 thousand, while inventories increased to $6,069,419 thousand from $5,235,485 thousand.
- Short-term debt increased to $733,952 thousand from $87,284 thousand.
- Fourth-quarter GAAP operating income margin of 2.8% was 11 bps below the prior quarter's 2.9%.
- Fourth-quarter restructuring, integration, and other expenses were $86,507 thousand, compared with $69,061 thousand in the prior-year quarter and $14,737 thousand in the prior quarter.
What to watch
- Delivery against first-quarter fiscal 2027 sales guidance of $9.00B – $9.30B and adjusted diluted EPS guidance of $2.80 – $2.90.
- Whether sales growth continues across all Electronic Components regions and Farnell, as assumed in guidance.
- Progress in inventory days following the fourth-quarter decline of 6 days to 71.
- Operating cash flow and working-capital movement in receivables, inventories and accounts payable.
- The extent of restructuring, integration and other expenses, which are excluded from first-quarter adjusted EPS guidance.
Balance sheet and cash flow
- Cash and cash equivalents were $155,396 thousand at June 27, 2026, compared with $192,428 thousand at June 28, 2025.
- Receivables were $6,882,965 thousand, compared with $4,327,450 thousand.
- Inventories were $6,069,419 thousand, compared with $5,235,485 thousand.
- Short-term debt was $733,952 thousand, compared with $87,284 thousand.
- Long-term debt was $2,478,864 thousand, compared with $2,574,729 thousand.
- Net cash flows used for operating activities were $(280,925) thousand in fiscal 2026, compared with $724,504 thousand provided in fiscal 2025.
- Purchases of property, plant and equipment were $(73,572) thousand in fiscal 2026, compared with $(147,474) thousand in fiscal 2025.
- Net cash flows provided by financing activities were $315,892 thousand in fiscal 2026, compared with $(693,526) thousand used in fiscal 2025.
- Net cash flows used for investing activities were $(71,473) thousand in fiscal 2026, compared with $(137,127) thousand in fiscal 2025.
Analysis
Avnet closed fiscal 2026 with record fourth-quarter sales of $8,295.4 million, up 47.7% year over year and 16.5% sequentially. The company reported sales growth across all Electronic Components regions and Farnell. Americas grew 55.3% year over year, EMEA grew 43.7%, and Asia grew 46.3%. Constant-currency sales growth was 47.1% year over year and 16.8% sequentially.
Profit growth exceeded the sales increase. Fourth-quarter GAAP operating income rose 214.5% year over year to $231.0 million, and GAAP operating margin expanded 147 bps to 2.8%. Adjusted operating income rose 122.5% to $317.9 million and adjusted operating margin expanded 129 bps to 3.8%. GAAP diluted EPS was $1.49 and adjusted diluted EPS was $2.28, up 181.5% year over year. Sequentially, adjusted operating margin improved 73 bps, although GAAP operating margin declined 11 bps from 2.9%.
Electronic Components generated record sales of $7,795.3 million and a 4.1% operating income margin. Farnell generated record sales of $500.1 million and a 9.0% operating income margin, with gross profit margin rising to 29.6% from 25.7% a year earlier. At the fiscal-year level, sales reached $27,632.7 million, GAAP operating income was $724.8 million, and adjusted diluted EPS was $5.67. Inventory days declined by 6 days sequentially to 71 in the fourth quarter and decreased 18 days year over year to 81 for fiscal 2026.
Working capital absorbed cash during fiscal 2026. Net cash flows used for operating activities were $(280,925) thousand, with receivables increasing by $(2,614,899) thousand and inventories increasing by $(918,329) thousand. The company returned $138 million through repurchases and $114 million in dividends during the year. Cash and cash equivalents ended at $155,396 thousand; short-term debt was $733,952 thousand and long-term debt was $2,478,864 thousand.
For the first quarter of fiscal 2027, Avnet guided sales to $9.00B – $9.30B and adjusted diluted EPS to $2.80 – $2.90. The sales midpoint of $9.15B implies approximately 10% sequential growth, and the company assumes sales growth across all Electronic Components regions and Farnell. Guidance excludes restructuring, integration and other expenses, foreign currency gains and losses, and certain income tax adjustments; the expected GAAP diluted EPS range is $2.57 – $2.77.
Management, verbatim
Our fourth quarter results underscore the strength of Avnet’s business model and the impact of our disciplined execution and long-term strategy. We delivered record sales while growing profitability at more than two and a half times the rate of sales growth, demonstrating the operating leverage in our business model. Momentum continues to build across all regions, end markets and customer segments, giving us increasing confidence in our competitive position.
Phil Gallagher, Chief Executive Officer
As demand improves and mass market activity continues to accelerate, we are entering fiscal 2027 with great momentum. We are well positioned to capture growth opportunities, further expand earnings and generate attractive long-term returns for our shareholders.
Phil Gallagher, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; comparison of actual results with prior guidance is unavailable.
- Consolidated gross margin was not printed.
- Fourth-quarter operating cash flow was not provided.
- Free cash flow was not provided.
- Quarterly share repurchases were not provided.
- GAAP and non-GAAP effective tax rates for the reported fourth quarter and fiscal year were not printed.
- First-quarter fiscal 2027 gross-margin guidance and operating-expense guidance were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Avnet’s Q4 and fiscal 2026 results plus first-quarter FY2027 guidance.
Ticker impact
Avnet reported record Q4 sales of $8.3B (+48% Y/Y) and guided Q1 FY2027 sales to $9.00B-$9.30B with adjusted EPS $2.80-$2.90.
Likely positive bias for AVT shares into the next earnings window, with upside/downside sensitivity to whether demand and margins sustain versus the guided midpoint.
The filing includes both GAAP and non-GAAP results, segment margins (EC 4.1%, Farnell 9.0%), and quantified Q1 FY2027 guidance ranges, which are direct inputs to valuation and near-term positioning.
Market effects
Signals improving demand and operating leverage in electronic components distribution, which can support sentiment across the distributor peer group.
All regions showed sequential and Y/Y sales growth, with Asia and EMEA contributing materially to the Q4 increase.
As a large global distributor, AVT’s guidance can influence read-across expectations for component supply-chain demand into early FY2027.
Counterpoint
The guidance is non-GAAP and excludes several items; if underlying demand normalizes or margin expansion reverses, the stock could retrace despite the headline beat.
Key entities
- companyAvnet, Inc.
Nasdaq-listed electronic components distributor reporting Q4 and FY2026 results and issuing Q1 FY2027 guidance.
- personPhil Gallagher
Avnet CEO quoted on momentum and execution.
