Avnet Posts Record $10.7 Billion Quarterly Sales, Up 81.7%, as Adjusted EPS Hits $3.63

Published November 4, 2026 at 9:22 AM EST

Avnet posted record fiscal first-quarter sales of $10.718 billion, up 81.7% from a year earlier, and record adjusted EPS of $3.63, according to its 8-K released Wednesday, as demand for electronic components from AI data centers, industrial and defense customers surged.

Diluted EPS was $3.28, compared with $0.61 a year earlier. Sales rose 29.2% from the June quarter. The quarter included an extra week; excluding it, sales grew 71% year over year and 21% sequentially.

Margins widen sharply

Operating income more than tripled to $474.7 million, lifting operating margin 202 basis points to 4.4%. Adjusted operating income rose to $498.1 million, a 4.7% margin.

The Electronic Components business posted record operating income of $484 million and a 4.8% margin, up 189 basis points. Farnell, its distribution unit for smaller engineering customers, hit record sales of $583 million and a 10.1% operating margin, up 576 basis points.

"The fundamental backdrop for our industry remains positive, with continued growth across our core verticals such as industrial, aerospace and defense, transportation and AI and data center applications," said CEO Phil Gallagher.

Working capital

Return on working capital improved to 25% from 19% in the prior quarter and 10% a year earlier. Inventory days held at 72, and net working capital days fell 5 to 64. Avnet returned $30 million to shareholders through dividends.

Outlook

For the fiscal second quarter, Avnet expects sales of $11.1 billion to $11.4 billion and adjusted EPS of $3.90 to $4.10. The company said the midpoint implies 12% sequential growth after adjusting for the extra week in the first quarter. The guidance assumes component supply similar to the first quarter and 87 million average diluted shares.

By the numbers

Fiscal Q1 sales: $10.718 billion, up 81.7%
Adjusted EPS: $3.63; GAAP EPS: $3.28
Operating margin: 4.4%, up 202 basis points
Farnell sales: $583 million, a record
Q2 sales guidance: $11.1 billion to $11.4 billion

Sources

Avnet Form 8-K with fiscal first-quarter 2027 earnings release, filed Nov. 4, 2026 (accession 0000008858-26-000120)

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