Avnet (AVT) Q2 2026 earnings summary

Executive summary

• Sales reached $6.32 billion in Q2 FY26, up 12% year-over-year, with growth across all regions and segments, led by record Asia revenues of $3.17 billion.

• Adjusted operating income was $172 million (2.7% margin), up 8% year-over-year, while net income declined 29.3% to $61.7 million due to higher tax and SG&A expenses.

• Adjusted diluted EPS was $1.05, up 21% year-over-year and 25% sequentially; GAAP diluted EPS was $0.75, down 24.2%.

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

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

Financial highlights

• Gross margin was 10.5%, stable year-over-year, with EC gross margin at 9.3% and Farnell at 26.8%.

• SG&A expenses increased 12.5% to $492 million, reflecting higher sales volumes and variable costs.

• Restructuring and other expenses were $25.2 million, mainly for severance and EMEA distribution center start-up.

• Adjusted operating income margin was 2.7%; GAAP operating margin was 2.3%.

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

Outlook and guidance

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

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

• Assumes adjusted effective tax rate of 21–25% and 83 million average diluted shares outstanding.

• No material adverse impact expected from recent U.S. tax legislation in fiscal 2026.