Avnet (AVT) investor relations material

Executive summary

• Q2 FY26 sales reached $6.32 billion, up 12% year-over-year, with growth across all regions and segments, led by record revenues in Asia.

• Adjusted diluted EPS was $1.05, up 21% year-over-year and nearly quadrupling sequentially, while GAAP diluted EPS was $0.75, down 24.2% year-over-year due to higher tax and SG&A expenses.

• Operating margins expanded in both Electronic Components (3.2%) and Farnell (4.7%), with both segments showing sequential and year-over-year growth.

• Generated $208 million in operating cash flow and reduced inventory by $126 million, with days of inventory at 86.

• Book-to-bill ratios remained robust and above parity in all regions, indicating strong demand.

Financial highlights

• Gross margin was 10.5%, stable year-over-year but slightly down due to a higher mix of lower-margin Asia sales.

• Adjusted operating income was $172 million (up 8% year-over-year); adjusted operating margin at 2.7%.

• SG&A expenses were $492 million, up year-over-year and sequentially, reflecting higher variable costs and stock-based compensation.

• Working capital days decreased by 7 sequentially; inventory reduced to $5.3 billion.

• Cash and cash equivalents at quarter end: $286.5 million.

Outlook and guidance

• Q3 FY26 sales guidance: $6.20–$6.50 billion (midpoint $6.35B); adjusted diluted EPS guidance: $1.20–$1.30 (midpoint $1.25).

• Guidance assumes continued recovery in Americas and EMEA, less-than-seasonal decline in Asia, and stable interest expense.

• Operating margin expansion expected as Western regions recover; adjusted effective tax rate assumed at 21–25%.

• 83 million diluted shares assumed for Q3.