Avnet (AVT) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 sales of $8.3 billion, up 48% year-over-year and 17% sequentially, with double-digit growth across all regions and end markets, and significant margin expansion.

• Adjusted operating income rose 122% year-over-year to $318 million, with margin improving to 3.8%.

• Adjusted diluted EPS reached $2.28, up 182% year-over-year and 54% sequentially, growing 3.8x faster than sales.

• Operating leverage drove profitability growth at more than 2.5 times the rate of sales growth.

• Book-to-bill ratios remain above one in all regions, with healthy backlog and extended customer demand visibility, positioning for continued growth into fiscal 2027.

Financial highlights

• Q4 sales totaled $8.3 billion, with gross margin at 10.4% and all regions posting double-digit growth.

• Adjusted operating income was $318 million, with an operating margin of 3.8%, up over 70 basis points sequentially and 129 bps year-over-year.

• Adjusted diluted EPS was $2.28, a quarterly record, up 182% year-over-year.

• Inventory days improved to 71, the lowest in nearly four years, and return on working capital reached 19%.

• SG&A expenses as a percentage of gross profit improved by 691 bps sequentially.

Outlook and guidance

• Q1 fiscal 2027 sales guidance: $9.00–$9.30 billion, midpoint $9.15 billion, implying 10% sequential growth.

• Adjusted diluted EPS guidance for Q1 fiscal 2027: $2.80–$2.90.

• Guidance assumes continued growth across all regions and segments, stable interest expense, and an adjusted effective tax rate of 21–25%.

• SG&A expenses as a percentage of gross profit expected to improve to below 60% before the end of fiscal 2027.

• Guidance assumes modest price increases, with growth primarily driven by higher unit volumes and strong backlog.