Avnet closed its fiscal year with its strongest quarter on record, reporting sales of $8.3 billion for the three months to 27th June – up 48% year-on-year and 17% on the previous quarter.
The global electronics distributor said growth came from every region and both of its business segments, Electronic Components and Farnell.
Profitability grew even faster than sales. Adjusted operating income rose 122% year-on-year to $317.9 million, giving an adjusted operating margin of 3.8%, up from 2.5% a year earlier.
Electronic Components, Avnet’s core distribution business, posted record sales of $7.8 billion and an operating margin of 4.1%. Farnell, its smaller high-service-level distribution arm, also hit a sales record at $500 million, with margin more than doubling to 9.0% from 4.3% a year ago.
CEO Phil Gallagher attributed the results to operating leverage across the business: “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,” he said, adding that momentum was building “across all regions, end markets, and customer segments.”
Full-year picture
For the full 2026 fiscal year, Avnet reported sales of $27.6 billion, up 25% on the prior year, with adjusted diluted EPS of $5.67 – a 65% increase. Inventory days fell 18 to 81 across the year, and the company returned $138 million to shareholders through buybacks and $114 million through dividends.
Guidance
Looking to the first quarter of fiscal 2027, Avnet guided for sales of $9.0–9.3 billion (midpoint $9.15 billion) and adjusted diluted EPS of $2.80–2.90 – implying roughly 10% sequential sales growth, with gains expected across all regions and Farnell.
Gallagher struck an optimistic tone on the year ahead: “As demand improves and mass market activity continues to accelerate, we are entering fiscal 2027 with great momentum.”
