Avnet beat expectations in Q2 reporting year on year revenues up 11.6% to $6.32 billion.
“We delivered year-over-year sales growth across all of our electronic components regions and Farnell, and both total company revenue and earnings per share were above our expectations,” commented Phil Gallagher, Avnet Chief Executive Officer. “Sequentially, our adjusted operating income grew two times faster than sales, demonstrating the expected leverage in our business model. Our team’s continued commitment to optimising inventory and driving operational excellence also enabled us to generate operating cash flow and reduce days of inventory this quarter. The trends we see are encouraging, and our third quarter outlook implies above-trend seasonal growth and improving margins.”
Asia hit record quarterly sales of $3.17 billion, a 16.9% increase year on year, and a sixth consecutive quarter of year on year sales growth.
Farnell was another impressive performer. Q2 sales rocketed 23.6% to $427.1 million.
Commented Rebeca Obregon, President, Farnell Global: “Farnell sales increased by more than 20% compared to last year, reflecting recovery across all three regions and marking Q3 of FY26 as our third consecutive quarter of year-over-year sales growth. Operating income margins improved sequentially as well, and we expect Farnell’s gross and operating margins to continue to improve as demand for on-board components recovers.
“We are also gaining traction with our ‘Power of One’ initiative, which leverages the best of the Avnet core and Farnell digital platform to empower our customers with unmatched responsiveness, scale and speed to market.”
Avnet’s EMEA revenues rose 8.3% to $1.71 billion, a welcome return to year on year sales growth.
In the Americas sales advanced 4.9% to $1.43 billion, a second consecutive quarter of year on year growth.
