Strong Q3 for Avnet (NASDAQ: AVT) with $7.1B sales and $1.14 EPS
Rhea-AI Filing Summary
Avnet, Inc. reported strong third quarter 2026 results, with sales of $7,119.8 million, up 34.0% year over year and 12.7% sequentially. GAAP operating income rose to $205.5 million, a 43.5% increase year over year, and operating margin improved to 2.9%.
GAAP diluted EPS was $1.14, up 12.9% year over year and 52.0% sequentially, while adjusted diluted EPS reached $1.48, a 76.2% year-over-year increase. Electronic Components sales were $6,665.1 million, up 34.7%, and Farnell sales were $454.7 million, up 24.0%.
For the fourth quarter of fiscal 2026, Avnet guides sales between $7.30 billion and $7.60 billion and adjusted diluted EPS between $1.70 and $1.80, implying about 5% sequential sales growth at the midpoint.
Positive
- Strong top-line growth: Q3 2026 sales were $7,119.8 million, up 34.0% year over year and 12.7% sequentially, with growth across all regions and both segments.
- Sharp earnings improvement: Adjusted diluted EPS reached $1.48, a 76.2% year-over-year increase, while GAAP diluted EPS rose to $1.14, up 52.0% sequentially.
- Margin expansion: Adjusted operating income grew to $220.6 million, with adjusted operating margin improving to 3.1%, supported by disciplined cost management and higher operating leverage.
- Robust guidance: Fourth quarter fiscal 2026 guidance targets sales of $7.30–$7.60 billion and adjusted diluted EPS of $1.70–$1.80, implying approximately 5% sequential sales growth at the midpoint.
Negative
- None.
Insights
Avnet delivered broad-based growth, margin improvement and upbeat Q4 guidance.
Avnet posted third quarter 2026 sales of $7,119.8 million, up 34.0% year over year, with all regions and both segments contributing. GAAP operating income increased to $205.5 million, and adjusted operating income reached $220.6 million, showing solid operating leverage.
Profitability improved meaningfully: GAAP diluted EPS was $1.14, while adjusted diluted EPS was $1.48, up 76.2% year over year. Electronic Components and Farnell grew sales 34.7% and 24.0%, respectively, with Farnell’s operating margin rising to 5.2%.
Management’s outlook for the fourth quarter of fiscal 2026 calls for sales of $7.30–$7.60 billion and adjusted diluted EPS of $1.70–$1.80, implying roughly 5% sequential sales growth at the midpoint. Investors can compare upcoming results to this guidance and the stated assumption of 83 million average diluted shares outstanding.
8-K Event Classification
Key Figures
Key Terms
adjusted operating income financial
constant currency financial
restructuring, integration, and other expenses financial
Electronic Components financial
convertible notes financial
Earnings Snapshot
Q4 fiscal 2026 sales $7.30–$7.60 billion and adjusted diluted EPS $1.70–$1.80
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Avnet, Inc. issued a press release announcing its third quarter results of operations for fiscal 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K and the exhibit attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following materials are attached as exhibits to this Current Report on Form 8-K:
Exhibit | | Description |
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99.1 |
| Press Release, dated April 29, 2026. |
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 29, 2026 | AVNET, INC. | |||
By: | /s/ Kenneth A. Jacobson | |||
Name: Kenneth A. Jacobson | ||||
Title: Chief Financial Officer | ||||
Exhibit 99.1
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 – April 29, 2026 – 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 |
| o | Sequential and year-over-year sales growth across all EC regions and Farnell |
| o | 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 |
| o | 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 |
| o | Adjusted operating income margin of 3.1% expanded 38 basis points sequentially |
| o | EC operating margin of 3.5% and second consecutive quarter of expansion |
| o | 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 $29 million to shareholders in dividends |
| ● | Improved days of inventory to 77 days in the quarter, achieving near-term target of below 80 days |
| o | Improved days of inventory in the EC business to below 70 days in the quarter |
Key Financial Metrics
($ 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)
Investor Relations Contact
InvestorRelations@Avnet.com
Media Relations Contact
Liam Creighton, 480-643-5027
Liam.Creighton@Avnet.com
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 | |