AVNET INC recently released its 10-Q report, revealing a leading global electronic component distributor and solutions provider that has served customers in over 140 countries for more than a century. The company operates through two segments, Electronic Components and Farnell, offering a wide range of electronic component technology, design support, engineering resources, supply chain solutions, and embedded solutions across various markets.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, AVNET INC disclosed its operating income of $146.2 million for the second quarter of fiscal 2026, a decrease of $9.1 million or 5.9% year over year. The adjusted operating income for the same period was $171.7 million, an increase of $12.2 million or 7.7%. The company also reported a gross profit of $663 million for the second quarter of fiscal 2026, representing an 11.2% increase from the same period in the prior year.
The report highlighted that AVNET INC experienced sales growth across all Electronic Components regions and from Farnell, with sales for the second quarter of fiscal 2026 reaching $6.32 billion, an increase of 11.6% compared to the same quarter in the previous year. The sales growth was primarily driven by increased volumes and, to a lesser extent, an increased mix of sales of higher-priced components.
Additionally, the report discussed the impact of changes in trade policies and global trade disruptions, stating that sales related to customer billings for various tariffs were less than one percent of total sales for the first six months of fiscal 2026 and fiscal 2025. The company also noted that it continues to monitor and evaluate the changing tariff situation and the overall environment in the electronic components industry.
AVNET INC's gross profit margin decreased by 3 basis points to 10.5% for the second quarter of fiscal 2026, primarily due to a shift in the geographic sales mix toward Asia, which contributed to the decline in gross profit margin. The company's selling, general, and administrative expenses increased by 12.5% from the second quarter of fiscal 2025, primarily due to increases in variable operating expenses associated with higher sales volumes and the impact of changes in foreign currency translation rates.
The report also highlighted the company's restructuring, integration, and other expenses, which totaled $25.2 million for the second quarter of fiscal 2026, consisting of severance, restructuring-related expenses, and integration costs primarily related to a new distribution center in EMEA.
As a result of these announcements, the company's shares have moved -0.68% on the market, and are now trading at a price of $50.81. For more information, read the company's full 10-Q submission here.
