Avnet Inc Reports Third-Quarter Sales Surge

By Chris Stiles • Wednesday, April 29 12:33 • Permanent Link

Avnet posted third-quarter fiscal 2026 sales of $7.12 billion, up 34.0% from $5.32 billion a year earlier and up 12.7% from $6.32 billion in the prior quarter.

Operating income rose to $205.5 million from $143.3 million a year ago, a gain of 43.5%, and increased 40.6% from $146.2 million in the December quarter. Operating margin widened to 2.9% from 2.7% a year earlier and 2.3% in the prior quarter.

Diluted earnings per share reached $1.14, up 12.9% from $1.01 a year earlier and 52.0% from 75 cents in the prior quarter. Adjusted diluted EPS was $1.48, compared with 84 cents a year ago and $1.05 in the December quarter, a rise of 76.2% year over year and 41.0% sequentially.

Adjusted operating income climbed to $220.6 million from $152.7 million a year earlier and $171.7 million in the prior quarter. Adjusted operating margin improved to 3.1% from 2.9% a year ago and 2.7% in the December quarter.

The electronic components business generated $6.67 billion in sales, up 34.7% year over year and 13.1% sequentially. Its operating margin was 3.5%, unchanged from a year earlier and up from 3.2% in the prior quarter.

Farnell sales rose to $454.7 million from $366.7 million a year earlier, a 24.0% increase, and from $427.1 million in the prior quarter, up 6.5%. Farnell’s operating margin expanded to 5.2% from 3.0% a year ago and 4.7% in the prior quarter.

By region, sales in the Americas rose to $1.62 billion from $1.27 billion, up 26.7%, and from $1.44 billion sequentially, up 12.5%. EMEA sales increased to $2.05 billion from $1.56 billion, up 31.3%, and from $1.71 billion, up 19.4%. Asia sales climbed to $3.46 billion from $2.48 billion, up 39.3%, and from $3.17 billion, up 9.1%.

Avnet said it used $54 million of cash flow for operations while supporting $800 million in sales growth. Days of inventory improved to 77 from the prior quarter, and electronic components inventory fell to below 70 days.

For the fourth quarter, Avnet projected sales of $7.30 billion to $7.60 billion, with a midpoint of $7.45 billion, implying about 5% sequential growth. Adjusted diluted EPS is expected to be $1.70 to $1.80, with a midpoint of $1.75. As a result of these announcements, the company's shares have moved 0.69% on the market, and are now trading at a price of $78.65. For more information, read the company's full 8-K submission here.

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