Avnet Q4 sales grew 1% year on year and 5.7% sequentially to $5.62 billion at the high end of Avnet’s expectations.
In the full year revenues were $22.2 billion, compared with $23.8 billion in the prior year.
“In fiscal year 2025, we executed well given the overall market environment, and I want to express my gratitude to our team for their dedication in supporting our supplier and customer partners. Thanks to their efforts, we managed costs effectively and made progress on working capital optimisation to enhance operating cash flow,” said Avnet Chief Executive Officer Phil Gallagher (pictured). “We remain optimistic about the recovery led by steady growth in our Asia region and the return of Farnell to year-over-year growth, which enabled us to surpass the high end of our fourth-quarter sales and earnings guidance. We are encouraged by these positive signals as we start the new fiscal year.
“At the top line, our electronic components business increased on a sequential basis and year over year. All regions were higher sequentially, and notably, this was our fourth consecutive quarter of year over year growth in Asia.”
Soaring sales in Asia were better than expected at $2.69 billion, a year on year increase of 17.6% and 8.4% sequentially.
“Demand in most end markets increased both year over year and sequentially. Similar to last quarter, we experienced a slight benefit from customers ordering due to the uncertainty of potential regulatory changes in the US,” said Gallagher.
In The Americas, revenues rose 4.2% sequentially to $1.33 billion. Demand increased sequentially for the communications end market, and compute was strongest on a year on year basis.
“We did not see pull ins in any magnitude and customer billings for tariffs were not meaningful during the quarter,” added Gallagher.
EMEA revenues edged forward 2.6% sequentially to $1.59 billion.
“In EMEA, the market is still mixed with some signs of improvement in certain end markets. In the quarter, most end markets increased sequentially. The communications market was the only vertical that showed growth year on year,” Gallagher commented.
“With that said, we are optimistic that bookings in EMEA will grow in September as the Europeans return from their typical summer vacation period. From a demand creation standpoint, revenues increased 7% sequentially as our field application engineers continued to engage with our customers and suppliers on design wins and registrations. This strength of our FAEs and technical teams is a key part of our value proposition.”
Farnell continued its progress from the previous quarter delivering revenues of $386.5 million, up 3% year on year and 5.4% sequentially.
“There is still a lot of work ahead of us at Farnell, but as expected, we are seeing steady improvement, led this quarter by the increase in sales of single board computers and the improvement in the number and size of customer orders,” said Gallagher.
He also revealed that Dave Youngblood, Avnet’s Chief Digital Officer is working with Farnell President Rebeca Obregon and her digital team to improve customer experience on the company’s website.
Gallagher also thinks the industry is close to an inflection point on customer inventory.
Hesitant to give an exact answer Gallagher cited drop in orders from customers which suggests they are short on some parts, and a rise in book to bill ratios across Avnet.
“I would still would like a little bit more visibility out there from the customers’ standpoint. They’re still a little conservative on that front,” remarked Gallagher.
For Q1 2026, Avnet is guiding sales in the range of $5.55 billion to $5.85 billion. The guidance assumes sequential sales growth of approximately 2% at the midpoint and assumes sales growth in all regions.
