Can Avnet Sustain Its Margin Expansion Momentum in FY27?

Tech Data agreed to acquire Avnet's Technology Solutions business for over $2 billion. The deal involves two electronics distributors and is significant for investors in both companies.

Avnet (AVT) shares fell 6.2% since its last earnings report, despite beating Q4 estimates. Revenue rose 47.7% YoY to $8.3B, with strong demand across regions and markets. AVT guided for Q1 FY2027 revenue of $9.15B and EPS of $2.85. Analysts revised estimates upward, giving AVT a Zacks Rank #1 (Strong Buy).

Avnet (AVT) reported $8.30B revenue, up 47.7% YoY, exceeding expectations. CDW (CDW) saw $6.57B revenue, up 10% YoY. Insight Enterprises (NSIT) reported $2.40B revenue, up 14.7% YoY. TD SYNNEX (SNX) reported $19.57B revenue, up 31% YoY. All companies beat analysts' EPS estimates, with varying stock price reactions.

Avnet’s Q4 fiscal 2026 earnings call said the quarter beat sales and EPS guidance, with record sales of $8.3 billion and an adjusted operating margin of 3.8%. Electronic Components margin was 4% and Farnell 9%. Inventory days fell to 71. Management cited improving book-to-bills and demand across regions, plus tighter supply and broader pricing increases.

Avnet reported record Q4 2026 results, citing broad demand recovery, operating leverage, tighter semiconductor and IP&E supply with longer lead times, and more widespread pricing increases beyond memory. Inventory fell to 71 days. For FY2027, management guided for ~10% sequential sales growth at Q1 midpoint and EPS growing about 3x sales, with book-to-bill above 1.0.

Avnet (NASDAQ:AVT) reported Q4 2026 earnings call commentary citing record sales growth and EPS supported by memory-driven pricing. Management said about one-third of sequential and YoY sales growth came from memory price increases, while gross margin fell 14 bps YoY. Cash flow of $291 million funded growth; guidance targets revenue $9.0–$9.3B and operating margin toward 5%.