Avnet Sequential Sales Growth Accelerates to 29%

The Tip Desk · November 4, 2026 · 3 min read

The distributor posted record first-quarter sales of $10.7 billion and guided second-quarter sales to $11.1 billion–$11.4 billion.

Avnet, Inc. (AVT), the global technology distributor, reported record first-quarter sales of $10.7 billion for the period ended October 3, 2026, as year-over-year growth accelerated to 82% from 48% in the fiscal fourth quarter. Sequential sales growth also stepped up to 29% from 17% in the prior quarter. The fiscal first quarter contained 14 weeks versus 13 in the year-ago period; excluding the extra week, the company said sales growth was 71% year over year and 21% sequentially.

Diluted earnings were $3.28 a share, compared with $0.61 a year earlier. Adjusted diluted earnings were $3.63 a share, up 332% year over year. The company said adjusted diluted earnings per share grew four times greater than sales year over year. GAAP operating income was $474.7 million, and the operating income margin was 4.4%, up 202 basis points from a year earlier. Adjusted operating income was $498.1 million, and the adjusted operating income margin was 4.7%, up 210 basis points year over year. Adjusted operating income grew about three times greater than sales.

Chief Executive Officer Phil Gallagher said the company began fiscal 2027 with stronger demand and solid execution across its businesses, citing continued growth in industrial, aerospace and defense, transportation, and AI and data center applications.

Electronic Components, the larger of the two reportable groups, posted sales of $10.13 billion, up 84% year over year and 30% sequentially. Its operating margin was 4.8%, up 189 basis points from a year earlier and 71 basis points from 4.1% in the fiscal fourth quarter. Operating income in the segment was a record $484 million. Farnell sales were $583 million, up 46% year over year and 17% sequentially. Farnell’s operating margin was 10.1%, up 576 basis points from a year earlier and 109 basis points from 9.0% in the fourth quarter.

Americas sales were $2.86 billion, up 109% year over year and 39% sequentially. EMEA sales were $2.74 billion, up 64% year over year and 19% sequentially. Asia sales were $5.12 billion, up 79% year over year and 30% sequentially. Sequential and year-over-year sales growth was reported across all Electronic Components regions and Farnell.

Return on working capital improved to 25% from 19% in the prior quarter and 10% a year ago. Inventory days were 72, relatively flat after a 6-day decline to 71 in the fourth quarter. Net working capital days declined 5 days to 64 days. The company returned $30 million to shareholders in dividends. Cash used in operations was $842.4 million, versus $144.6 million a year earlier, as inventories rose and receivables increased. Cash and cash equivalents ended at $236.8 million.

For the second quarter of fiscal 2027 ending January 2, 2027, Avnet guided sales of $11.1 billion to $11.4 billion, with a midpoint of $11.25 billion. That range implies sequential sales growth of about 5% at the midpoint and 12% after adjusting for the extra first-quarter week. Adjusted diluted earnings guidance is $3.90 to $4.10 a share, with a midpoint of $4.00. The company said the outlook assumes similar supply of electronic components from suppliers, similar interest expense, an adjusted effective tax rate of 21% to 25%, and 87 million average diluted shares outstanding.