Avnet Inc 10-Q for FY2026 Q3

Avnet Inc (AVT)

10-Q 2026-05-01 For: 2026-03-28

Added on May 01, 2026

About this 10-Q

Avnet Inc filed this 10-Q on May 1, 2026, covering the quarter ended March 28, 2026 (FY2026 Q3).

Headline figures

Quarter ended March 28, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $7.12B; up 33.9% from $5.32B a year earlier
Net income: $94.33M; up 7.3% from net income of $87.92M a year earlier
Diluted EPS: $1.14; up 12.9% from $1.01 a year earlier

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 28, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____


New York				11-1890605
(State or other jurisdiction				(IRS Employer
of incorporation or organization)				Identification No.)


2211 South 47th Street, Phoenix, Arizona		85034
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol	Name of Each Exchange on Which registered:
Common stock, par value $1.00 per share	AVT	Nasdaq Global Select Market

Large Accelerated Filer ☑		Accelerated Filer ☐
Non-accelerated Filer ☐		Smaller Reporting Company ☐
Emerging Growth Company ☐

	Page No.
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Consolidated Balance Sheets at March 28, 2026, and June 28, 2025	2

Consolidated Statements of Operations for the third quarters and nine months ended March 28, 2026, and March 29, 2025	3

Consolidated Statements of Comprehensive Income for the third quarters and nine months ended March 28, 2026, and March 29, 2025	4

Consolidated Statements of Shareholders’ Equity for the third quarters and nine months ended March 28, 2026, and March 29, 2025	5

Consolidated Statements of Cash Flows for the nine months ended March 28, 2026, and March 29, 2025	6

Notes to Consolidated Financial Statements	7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3. Quantitative and Qualitative Disclosures About Market Risk	27

Item 4. Controls and Procedures	27

PART II. OTHER INFORMATION

Item 1. Legal Proceedings	27

Item 1A. Risk Factors	28

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 6. Exhibits	29

Signature Page	30


		March 28,		June 28,
		2026		2025

		(Thousands, except share
		amounts)
ASSETS
Current assets:
Cash and cash equivalents		$	202,436	$	192,428
Receivables			5,502,259		4,327,450
Inventories			5,462,394		5,235,485
Prepaid and other current assets			217,677		263,374
Total current assets			11,384,766		10,018,737
Property, plant and equipment, net			651,041		667,247
Goodwill			817,042		837,031
Operating lease assets			216,815		201,896
Other assets			419,630		393,642
Total assets		$	13,489,294	$	12,118,553
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt		$	470,090	$	87,284
Accounts payable			4,625,893		3,487,419
Accrued expenses and other			516,679		497,154
Short-term operating lease liabilities			50,779		56,247
Total current liabilities			5,663,441		4,128,104
Long-term debt			2,472,813		2,574,729
Long-term operating lease liabilities			178,810		159,449
Other liabilities			220,893		244,776
Total liabilities			8,535,957		7,107,058
Commitments and contingencies (Note 6)
Shareholders’ equity:
Common stock $1.00 par; authorized 300,000,000 shares; issued 82,041,227 shares and 83,853,935 shares, respectively			82,041		83,854
Additional paid-in capital			1,787,623		1,755,141
Retained earnings			3,415,319		3,430,193
Accumulated other comprehensive loss			(331,646)		(257,693)
Total shareholders’ equity			4,953,337		5,011,495
Total liabilities and shareholders’ equity		$	13,489,294	$	12,118,553


	Third Quarters Ended				Nine Months Ended
	March 28,		March 29,		March 28,		March 29,
	2026		2025		2026		2025

	(Thousands, except per share amounts)
Sales	$	7,119,779	$	5,315,423	$	19,337,306	$	16,582,959
Cost of sales		6,380,718		4,727,570		17,320,442		14,791,688
Gross profit		739,061		587,853		2,016,864		1,791,271
Selling, general and administrative expenses		518,789		435,492		1,474,902		1,311,214
Restructuring, integration, and other expenses		14,737		9,110		48,199		39,255
Operating income		205,535		143,251		493,763		440,802
Other expense, net		(1,827)		(3,992)		(2,226)		(9,680)
Interest and other financing expenses, net		(63,138)		(61,115)		(184,259)		(187,957)
Income before taxes		140,570		78,144		307,278		243,165
Income tax expense (benefit)		46,238		(9,775)		99,468		9,037
Net income	$	94,332	$	87,919	$	207,810	$	234,128

Earnings per share:
Basic	$	1.15	$	1.02	$	2.53	$	2.69
Diluted	$	1.14	$	1.01	$	2.49	$	2.65

Shares used to compute earnings per share:
Basic		82,014		86,014		82,152		86,984
Diluted		82,930		86,876		83,393		88,198
Cash dividends paid per common share	$	0.35	$	0.33	$	1.05	$	0.99


										Accumulated
		Common		Common		Additional				Other		Total
		Stock-		Stock-		Paid-In		Retained		Comprehensive		Shareholders’
		Shares		Amount		Capital		Earnings		(Loss) Income		Equity

		(Thousands)
Balance, June 28, 2025			83,854	$	83,854	$	1,755,141	$	3,430,193	$	(257,693)	$	5,011,495
Net income			—		—		—		51,745		—		51,745
Other comprehensive loss			—		—		—		—		(57,846)		(57,846)
Cash dividends			—		—		—		(28,464)		—		(28,464)
Repurchases of common stock			(2,646)		(2,646)		—		(137,044)		—		(139,690)
Stock-based compensation			138		138		10,723		—		—		10,861
Balance, September 27, 2025			81,346		81,346		1,765,864		3,316,430		(315,539)		4,848,101
Net income			—		—		—		61,733		—		61,733
Other comprehensive income			—		—		—		—		40,040		40,040
Cash dividends			—		—		—		(28,468)		—		(28,468)
Stock-based compensation			10		10		16,518		—		—		16,528
Balance, December 27, 2025			81,356		81,356		1,782,382		3,349,695		(275,499)		4,937,934
Net income			—		—		—		94,332		—		94,332
Other comprehensive loss			—		—		—		—		(56,147)		(56,147)
Cash dividends			—		—		—		(28,708)		—		(28,708)
Stock-based compensation			685		685		5,241		—		—		5,926
Balance, March 28, 2026			82,041	$	82,041	$	1,787,623	$	3,415,319	$	(331,646)	$	4,953,337


	Electronic
	Components		Farnell		Total

	(Thousands)
Carrying value at June 28, 2025 ⁽¹⁾	$	309,738	$	527,293	$	837,031
Foreign currency translation		(3,918)		(16,071)		(19,989)
Carrying value at March 28, 2026 ⁽¹⁾	$	305,820	$	511,222	$	817,042


	Severance		Other		Total

	(Thousands)
Fiscal 2026 restructuring expenses	$	15,742	$	3,133	$	18,875
Cash payments		(9,592)		(3,067)		(12,659)
Other, principally foreign currency translation		(19)		(2)		(21)
Balance at March 28, 2026	$	6,131	$	64	$	6,195


	Quarters Ended											Nine Months Ended
	Q3 2026			Q3 2025			Variance			Variance %		Q3 2026			Q3 2025				Variance		Variance %

	($ in millions, unless otherwise stated)
Sales	$	7,120		$	5,315		$	1,804		34.0	%	$	19,337		$	16,583		$	2,754		16.6	%
Gross profit		739			588			151		25.7			2,017			1,791			226		12.6
Selling, general and administrative expenses		519			435			83		19.1			1,475			1,311			164		12.5
Restructuring, integration, and other expenses		15			9			6		61.8			48			39			9		22.8
Operating income		206			143			62		43.5			494			441			53		12.0
Adjusted operating income		221			153			68		44.5			543			481			62		12.9
Other expense, net		(2)			(4)			2		(54.2)			(2)			(10)			7		(77.0)
Interest and other financing expenses, net		(63)			(61)			(2)		3.3			(184)			(188)			4		(2.0)
Income tax expense		46			(10)			56		(573.0)			99			9			90		1,000.7
Net income		94			88			6		7.3			208			234			(26)		(11.2)
Diluted earnings per share		1.14			1.01			0.13		12.9			2.49			2.65			(0.16)		(6.0)

Other Metrics
Gross profit margin		10.4	%		11.1	%		(68)	bps	(0.7)	%		10.4	%		10.8	%		(37)	bps	(0.4)	%
Operating income margin		2.9	%		2.7	%		19	bps	0.2	%		2.6	%		2.7	%		(11)	bps	(0.1)	%
Adjusted operating income margin		3.1	%		2.9	%		23	bps	0.2	%		2.8	%		2.9	%		(9)	bps	(0.1)	%
Effective tax rate		32.9	%		(12.5)	%		4,540	bps	45.4	%		32.4	%		3.7	%		2,865	bps	28.7	%


	Quarter Ended				Nine Months Ended
	March 28, 2026				March 28, 2026
			Sales				Sales
			Year-Year %				Year-Year %
	Sales		Change in		Sales		Change in
	Year-Year %		Constant		Year-Year %		Constant
	Change		Currency		Change		Currency
Avnet	34.0	%	30.2	%	16.6	%	14.2	%
Avnet by region
Americas	26.7	%	26.7	%	11.3	%	11.3	%
EMEA	31.3	%	18.9	%	12.8	%	4.5	%
Asia	39.3	%	39.3	%	21.7	%	21.7	%
Avnet by operating group
Electronic Components	34.7	%	31.2	%	16.3	%	14.0	%
Farnell	24.0	%	17.9	%	20.9	%	17.0	%

Exhibit
Number		Exhibit

10.1*		Amendment No. 2 to the Third Amended and Restated Credit Agreement, dated April 13, 2026, among Avnet, Inc., Avnet Holding Europe BV, Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer, and the Lenders party thereto.

31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		XBRL - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*		XBRL Taxonomy Extension Schema Document.

101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document.

101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*		XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document.

*	Filed herewith.
**	Furnished herewith. The information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liability under that section, and shall not be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.


	Nine Months Ended
	March 28,		March 29,
	2026		2025

	(Thousands)
Cash flows from operating activities:
Net income	$	207,810	$	234,128

Non-cash and other reconciling items:
Depreciation and amortization		54,229		53,307
Amortization of operating lease assets		43,295		39,963
Deferred income taxes		(21,382)		(81,950)
Stock-based compensation		35,726		30,449
Other, net		(13,380)		26,710
Changes in (net of effects from businesses acquired and divested):
Receivables		(1,210,690)		310,440
Inventories		(282,229)		217,568
Accounts payable		1,174,814		(8,785)
Accrued expenses and other, net		21,625		(236,802)
Net cash flows provided by operating activities		9,818		585,028

Cash flows from financing activities:
Issuance of convertible notes, net of issuance costs		633,750		—
(Repayments) borrowings under accounts receivable securitization, net		(226,500)		84,900
Repayments under senior unsecured credit facility, net		(409,505)		(418,591)
Borrowings (repayments) under bank credit facilities and other debt, net		18,787		63,432
Borrowings under term loan		268,053		—
Repurchases of common stock		(138,308)		(253,490)
Dividends paid on common stock		(85,639)		(85,645)
Other, net		(2,411)		(4,297)
Net cash flows provided by (used for) financing activities		58,227		(613,691)

Cash flows from investing activities:
Purchases of property, plant and equipment		(56,814)		(87,874)
Other, net		1,003		10,353
Net cash flows used for investing activities		(55,811)		(77,521)

Effect of currency exchange rate changes on cash and cash equivalents		(2,226)		(15,845)


	March 28,		March 29,
	2026		2025

	(Thousands)
Balance at beginning of the period	$	108,195	$	108,504
Credit Loss (Releases) Provisions		(362)		7,680
Credit Loss Recoveries		202		477
Receivables Write Offs		(5,956)		(7,273)
Foreign Currency Effect and Other		(948)		725
Balance at end of the period	$	101,131	$	110,113


	March 28,		June 28,		March 28,		June 28,
	2026		2025		2026		2025

	Interest Rate				Carrying Balance
Accounts receivable securitization program (due December 2026)	—		5.18	%	$	—	$	500,000
Credit Facility (due January 2030)	—		5.46	%		—		411,586
Term loan - noncurrent portion	4.13	%	—			174,964		—
Other long-term debt	4.74	%	4.74	%		19,462		21,975
Public notes due:
April 2026 ⁽¹⁾	4.63	%	4.63	%		550,000		550,000
March 2028	6.25	%	6.25	%		500,000		500,000
September 2030 (Convertible Notes)	1.75	%	—			650,000		—
May 2031	3.00	%	3.00	%		300,000		300,000
June 2032	5.50	%	5.50	%		300,000		300,000
Long-term debt before discount and debt issuance costs						2,494,426		2,583,561
Discount and debt issuance costs – unamortized						(21,613)		(8,832)
Long-term debt					$	2,472,813	$	2,574,729


	Third Quarters Ended				Nine Months Ended
	March 28,		March 29,		March 28,		March 29,
	2026		2025		2026		2025

	(Thousands)
Service cost within selling, general and administrative expenses	$	2,718	$	2,870	$	8,155	$	8,610

Interest cost		5,742		6,183		17,225		18,549
Expected return on plan assets		(10,553)		(10,438)		(31,659)		(31,315)
Recognized net actuarial loss and other		2,841		1,286		8,523		3,859
Total net periodic pension benefit within other expense, net		(1,970)		(2,969)		(5,911)		(8,907)

Net periodic pension cost (benefit)	$	748	$	(99)	$	2,244	$	(297)

	AVNET, INC.


	By:	/s/ KENNETH A. JACOBSON
		Kenneth A. Jacobson
		Chief Financial Officer


	BORROWERS:

	AVNET, INC.

	By:	/s/ Monica Pantea
	Name:	Monica Pantea
	Title:	Treasurer



	AVNET HOLDING EUROPE BV

	By:	/s/ Monica Pantea
	Name:	Monica Pantea
	Title:	Authorized Signatory


	ADMINISTRATIVE AGENT:

	BANK OF AMERICA, N.A.
	as Administrative Agent

	By:	/s/ Elizabeth Uribe
	Name	Elizabeth Uribe
	Title	Assistant Vice President


	LENDERS:

	BANK OF AMERICA, N.A., as an L/C Issuer, Swing
	Line Lender and a Lender

	By:	/s/ Carlos A. Delgado Robledo
	Name:	Carlos A. Delgado Robledo
	Title:	Director


	BNP PARIBAS, as an L/C Issuer and a Lender


	By:	/s/ Maria Muli
	Name:	Maria Muli
	Title:	Managing Director

	By:	/s/ Michael Kowalczuk
	Name:	Michael Kowalczuk
	Title:	Managing Director


	JPMORGAN CHASE BANK, N.A., as an L/C Issuer
	and a Lender


	By:	/s/ Ryan Zimmerman
	Name:	Ryan Zimmerman
	Title:	Executive Director


	TRUIST BANK, as an L/C Issuer and a Lender


	By:	/s/ Alfonso Brigham
	Name:	Alfonso Brigham
	Title:	Director


	MUFG BANK, LTD, as an L/C Issuer and a Lender


	By:	/s/ Thomas E. Lane
	Name:	Thomas E. Lane
	Title:	Managing Director


	THE BANK OF NOVA SCOTIA, as an L/C Issuer
	and a Lender


	By:	/s/ Yvonne Bai
	Name:	Yvonne Bai
	Title:	Director


	BANCO SANTANDER, S.A., NEW YORK BRANCH, as a Lender
,

	By:	/s/ Zara Kamal
	Name:	Zara Kamal
	Title:	Executive Director

	By:	/s/ Daniel Kostman
	Name:	Daniel Kostman
	Title:	Managing Director


	BANK OF CHINA, LOS ANGELES BRANCH, as a
	Lender


	By:	/s/ Peng Li
	Name:	Peng Li
	Title:	SVP & Branch Manager


	COMMERZBANK AG, NEW YORK BRANCH, as a
	Lender

	By:	/s/ Maurice Kiefer
	Name:	Maurice Kiefer
	Title:	Director

	By:	/s/ Jeff Sullivan
	Name:	Jeff Sullivan
	Title:	Director


	DBS BANK LTD., as a Lender


	By:	/s/ Lim Sok Hoon
	Name:	Lim Sok Hoon
	Title:	Assistant Vice President


	KEYBANK NATIONAL ASSOCIATION, as a Lender


	By:	/s/ John R. Macks
	Name:	John R. Macks
	Title:	Senior Vice President


	SUMITOMO MITSUI BANKING CORPORATION, as
	a Lender


	By:	/s/ Nabeel Shah
	Name:	Nabeel Shah
	Title:	Executive Director


	THE TORONTO-DOMINION BANK, NEW YORK
	BRANCH, as a Lender


	By:	/s/ David Perlman
	Name:	David Perlman
	Title:	Authorized Signatory


	U.S. BANK NATIONAL ASSOCIATION, as a Lender


	By:	/s/ Alex Wilson
	Name:	Alex Wilson
	Title:	Vice President


	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	as a Lender

	By:	/s/ Matt Milbourn
	Name:	Matt Milbourn
	Title:	Executive Director


	STANDARD CHARTERED BANK, as a Lender


	By:	/s/ Vinai Krishnan
	Name:	Vinai Krishnan
	Title:	Managing Director


	BAYERISCHE LANDESBANK, NEW YORK BRANCH,
	as a Lender


	By:	/s/ Rolf Siebert
	Name:	Rolf Siebert
	Title:	Executive Director

	By:	/s/ Elke Videgain
	Name:	Elke Videgain
	Title:	Vice President