AVT · Avnet, Inc.

Avnet's Q3 fiscal 2026 results demonstrated robust demand across its Electronic Components (EC) segment, which drove record sales of $7.1 billion, up 34% year-over-year and 13% sequentially, with growth in all regions including Americas (+27% YoY), EMEA (+31%), and Asia (+39%). Farnell also contributed with 24% YoY sales growth to $455 million. CEO Phil Gallagher highlighted execution on cost management, inventory optimization, and digital infrastructure investments as key to improved operating margins and leverage. GAAP operating income rose 44% YoY to $206 million (2.9% margin, +58 bps sequentially), while adjusted figures showed 3.1% margin (+38 bps Q/Q). EC margin held at 3.5% with sequential expansion, and Farnell reached 5.2% for the sixth straight quarter. Diluted EPS grew 13% YoY to $1.14 (GAAP) and 76% to $1.48 (adjusted). Balance sheet reflects sales growth support with inventories at $5.5 billion and receivables up to $5.5 billion as of March 28, 2026; days of inventory improved to 77 overall and below 70 in EC. Operating cash flow of $54 million funded $800 million sales increase, with $29 million returned via dividends ($0.35/share). Q4 guidance signals continued momentum with sales midpoint of $7.45 billion (+5% sequential) and adjusted EPS $1.75, assuming stable FX and tax rate of 21-25%, positioning Avnet toward prior peak margins amid broadening market strength.