Avnet Records Exceptional Finish to Fiscal 2026, Exceeds Sales and EPS Guidance in Fourth Quarter
Avnet, a leading technology distributor, has recorded an exceptional finish to fiscal 2026, exceeding sales and earnings per share (EPS) guidance in the fourth quarter.
The company's CEO, Phil Gallagher, expressed his pleasure with the record-breaking results, citing improving demand across all core markets, strong execution by teams, and expanded margins from operating leverage inherent in their business model. In a conference call on August 5, 2026, Gallagher highlighted that Avnet delivered a record quarter across all key metrics in both its Electronic Components and Farnell businesses.
The full fiscal year saw substantial revenue, margin, and earnings growth, as market conditions improved and the team remained focused on execution in areas they can control. Gallagher emphasized that many indicators discussed for several quarters began to translate into stronger results, including an improving book-to-bill ratio, increased backlog, customer demand visibility, and ordering patterns strengthened.
Avnet's CFO, Ken Jacobson, noted that the company stayed disciplined on working capital, operating expenses, and capital allocation while continuing to invest in capabilities differentiating Avnet in the market. Throughout the year, they demonstrated the value brought at the center of the technology supply chain by strengthening supplier relationships, supporting customers through a more complex demand environment, and expanding technical and digital capabilities.
During the recently completed fourth quarter, Avnet achieved record sales of $8.3 billion and an adjusted operating margin of 3.8%, highlighted by an electronic components operating margin of 4% and a 9% operating margin at Farnell. They also improved inventory days to 71, the lowest level in nearly four years.
The supply environment continued to tighten during the quarter, with lead times moving higher across most component categories tracked by Avnet for semiconductor, interconnect, passive, and electromechanical products. Gallagher noted that initially apparent demand concentration around AI and data center-related deployments has broadened considerably, with extended lead times now evident across a wider range of applications and end markets.
Avnet's exceptional performance in fiscal 2026 reflects the experience, resilience, and dedication of their global team. As they look to participate in several high-growth end markets demonstrating potential or already showing growth in electronic components demand, Avnet remains well-positioned to capitalize on these opportunities."
