Avnet (AVT) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY26 sales of $7.1–$7.12 billion, up 34% year-over-year and 13% sequentially, with growth across all regions and segments.

• Electronic Components business led growth, with Asia now representing nearly 50% of total sales and all regions posting double-digit increases.

• Adjusted operating income rose 43.5–45% year-over-year, with margin improvement driven by digital investments and cost management.

• Adjusted diluted EPS was $1.48, up 76% year-over-year and 41% sequentially, exceeding guidance.

• Broad-based demand growth across industrial, networking, and data center end markets, with industrial as the largest vertical at over 30% of revenue.

Financial highlights

• Q3 sales: $7.1–$7.12 billion, up 34% year-over-year and 13% sequentially.

• Adjusted operating income: $221 million; adjusted operating margin: 3.1%, up 23–40 bps year-over-year and sequentially.

• Adjusted diluted EPS: $1.48, up 76% year-over-year and 41% sequentially.

• Gross profit margin: 10.4%, down 68 bps year-over-year.

• SG&A expenses: $519 million, up $83 million year-over-year; increased 6% sequentially, mainly due to higher sales volumes and FX impact.

Outlook and guidance

• Q4 FY26 sales guidance: $7.3–$7.6 billion (midpoint $7.45B), implying ~5% sequential growth.

• Q4 adjusted diluted EPS guidance: $1.70–$1.80 (midpoint $1.75); GAAP EPS guidance: $1.20–$1.45.

• EC operating margin expected to reach 4% near-term goal within next fiscal year; Farnell margin targeted to return to double digits by H2 2027.

• Guidance assumes continued sales growth across all Electronic Components regions and an adjusted effective tax rate of 21–25%.