Avnet Inc 10-Q for FY2026 Q2

Avnet Inc (AVT)

10-Q 2026-01-30 For: 2025-12-27

Added on April 09, 2026

About this 10-Q

Avnet Inc filed this 10-Q on January 30, 2026, covering the quarter ended December 27, 2025 (FY2026 Q2).

Headline figures

Quarter ended December 27, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $6.32B; up 11.6% from $5.66B a year earlier
Net income: $61.73M; down 29.2% from net income of $87.25M a year earlier
Diluted EPS: $0.75; down 24.2% from $0.99 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 December 27, 2025

☐	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 December 27, 2025, and June 28, 2025	2

Consolidated Statements of Operations for the second quarters and six months ended December 27, 2025, and December 28, 2024	3

Consolidated Statements of Comprehensive Income for the second quarters and six months ended December 27, 2025, and December 28, 2024	4

Consolidated Statements of Shareholders’ Equity for the second quarters and six months ended December 27, 2025, and December 28, 2024	5

Consolidated Statements of Cash Flows for the six months ended December 27, 2025, and December 28, 2024	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


		December 27,		June 28,
		2025		2025

		(Thousands, except share
		amounts)
ASSETS
Current assets:
Cash and cash equivalents		$	286,547	$	192,428
Receivables			5,242,801		4,327,450
Inventories			5,294,505		5,235,485
Prepaid and other current assets			200,393		263,374
Total current assets			11,024,246		10,018,737
Property, plant and equipment, net			662,637		667,247
Goodwill			826,482		837,031
Operating lease assets			216,658		201,896
Other assets			423,152		393,642
Total assets		$	13,153,175	$	12,118,553
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt		$	463,598	$	87,284
Accounts payable			4,343,385		3,487,419
Accrued expenses and other			474,228		497,154
Short-term operating lease liabilities			52,749		56,247
Total current liabilities			5,333,960		4,128,104
Long-term debt			2,474,100		2,574,729
Long-term operating lease liabilities			176,931		159,449
Other liabilities			230,250		244,776
Total liabilities			8,215,241		7,107,058
Commitments and contingencies (Note 6)
Shareholders’ equity:
Common stock $1.00 par; authorized 300,000,000 shares; issued 81,356,404 shares and 83,853,935 shares, respectively			81,356		83,854
Additional paid-in capital			1,782,382		1,755,141
Retained earnings			3,349,695		3,430,193
Accumulated other comprehensive loss			(275,499)		(257,693)
Total shareholders’ equity			4,937,934		5,011,495
Total liabilities and shareholders’ equity		$	13,153,175	$	12,118,553


	Second Quarters Ended				Six Months Ended
	December 27,		December 28,		December 27,		December 28,
	2025		2024		2025		2024

	(Thousands, except per share amounts)
Sales	$	6,318,955	$	5,663,384	$	12,217,527	$	11,267,536
Cost of sales		5,655,917		5,067,332		10,939,724		10,064,118
Gross profit		663,038		596,052		1,277,803		1,203,418
Selling, general and administrative expenses		491,671		436,931		956,113		875,722
Restructuring, integration, and other expenses		25,171		3,794		33,462		30,145
Operating income		146,196		155,327		288,228		297,551
Other income (expense), net		5,067		(2,645)		(399)		(5,687)
Interest and other financing expenses, net		(61,358)		(62,399)		(121,121)		(126,843)
Income before taxes		89,905		90,283		166,708		165,021
Income tax expense		28,172		3,030		53,230		18,812
Net income	$	61,733	$	87,253	$	113,478	$	146,209

Earnings per share:
Basic	$	0.76	$	1.00	$	1.38	$	1.67
Diluted	$	0.75	$	0.99	$	1.36	$	1.65

Shares used to compute earnings per share:
Basic		81,445		86,846		82,221		87,469
Diluted		82,787		88,327		83,625		88,859
Cash dividends paid per common share	$	0.35	$	0.33	$	0.70	$	0.66


										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


	Electronic
	Components		Farnell		Total

	(Thousands)
Carrying value at June 28, 2025 ⁽¹⁾	$	309,738	$	527,293	$	837,031
Foreign currency translation		(1,152)		(9,397)		(10,549)
Carrying value at December 27, 2025 ⁽¹⁾	$	308,586	$	517,896	$	826,482


	Severance		Other		Total

	(Thousands)
Fiscal 2026 restructuring expenses	$	7,967	$	3,133	$	11,100
Cash payments		(5,563)		(3,067)		(8,630)
Other, principally foreign currency translation		(11)		(2)		(13)
Balance at December 27, 2025	$	2,393	$	64	$	2,457


	Quarters Ended											Six Months Ended
	Q2 2026			Q2 2025			Variance			Variance %		Q2 2026			Q2 2025				Variance		Variance %

	($ in millions, unless otherwise stated)
Sales	$	6,319		$	5,663		$	656		11.6	%	$	12,218		$	11,268		$	950		8.4	%
Gross profit		663			596			67		11.2			1,278			1,203			74		6.2
Selling, general and administrative expenses		492			437			55		12.5			956			876			80		9.2
Restructuring, integration, and other expenses		25			4			21		563.4			33			30			3		11.0
Operating income		146			155			(9)		(5.9)			288			298			(9)		(3.1)
Adjusted operating income		172			159			12		7.7			322			328			(6)		(1.8)
Other income (expense), net		5			(3)			8		(291.6)			(0)			(6)			5		(93.0)
Interest and other financing expenses, net		(61)			(62)			1		(1.7)			(121)			(127)			6		(4.5)
Income tax expense		28			3			25		829.5			53			19			34		183.0
Net income		62			87			(26)		(29.3)			113			146			(33)		(22.4)
Diluted earnings per share		0.75			0.99			(0.24)		(24.2)			1.36			1.65			(0.29)		(17.6)

Other Metrics
Gross profit margin		10.5	%		10.5	%		(3)	bps	(0.0)	%		10.5	%		10.7	%		(22)	bps	(0.2)	%
Operating income margin		2.3	%		2.7	%		(43)	bps	(0.4)	%		2.4	%		2.6	%		(28)	bps	(0.3)	%
Adjusted operating income margin		2.7	%		2.8	%		(10)	bps	(0.1)	%		2.6	%		2.9	%		(27)	bps	(0.3)	%
Effective tax rate		31.3	%		3.4	%		2,798	bps	28.0	%		31.9	%		11.4	%		2,053	bps	20.5	%


	Quarter Ended				Six Months Ended
	December 27, 2025				December 27, 2025
			Sales				Sales
			Year-Year %				Year-Year %
	Sales		Change in		Sales		Change in
	Year-Year %		Constant		Year-Year %		Constant
	Change		Currency		Change		Currency
Avnet	11.6	%	9.5	%	8.4	%	6.5	%
Avnet by region
Americas	4.9	%	4.9	%	4.0	%	4.0	%
EMEA	8.3	%	0.6	%	4.0	%	(2.6)	%
Asia	16.9	%	17.0	%	13.4	%	13.4	%
Avnet by operating group
EC	10.8	%	8.7	%	7.7	%	5.9	%
Farnell	23.6	%	20.3	%	19.3	%	16.4	%

Exhibit
Number		Exhibit

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.


	Six Months Ended
	December 27,		December 28,
	2025		2024

	(Thousands)
Cash flows from operating activities:
Net income	$	113,478	$	146,209

Non-cash and other reconciling items:
Depreciation and amortization		35,475		36,912
Amortization of operating lease assets		28,691		27,345
Deferred income taxes		(26,027)		(40,713)
Stock-based compensation		25,786		20,986
Other, net		(13,268)		20,958
Changes in (net of effects from businesses acquired and divested):
Receivables		(921,608)		(59,604)
Inventories		(75,860)		162,328
Accounts payable		876,793		312,861
Accrued expenses and other, net		20,198		(183,130)
Net cash flows provided by operating activities		63,658		444,152

Cash flows from financing activities:
Issuance of convertible notes, net of issuance costs		633,750		—
(Repayments) borrowings under accounts receivable securitization, net		(211,300)		84,900
Repayments under senior unsecured credit facility, net		(416,707)		(321,769)
Borrowings (repayments) under bank credit facilities and other debt, net		(5,849)		(70,793)
Borrowings under term loan		264,861		—
Repurchases of common stock		(138,308)		(152,199)
Dividends paid on common stock		(56,932)		(57,420)
Other, net		1,603		4,534
Net cash flows provided by (used for) financing activities		71,118		(512,747)

Cash flows from investing activities:
Purchases of property, plant and equipment		(39,941)		(61,135)
Other, net		416		347
Net cash flows used for investing activities		(39,525)		(60,788)

Effect of currency exchange rate changes on cash and cash equivalents		(1,132)		(9,422)


	December 27,		December 28,
	2025		2024

	(Thousands)
Balance at beginning of the period	$	108,195	$	108,504
Credit Loss (Releases) Provisions		(1,783)		5,717
Credit Loss Recoveries		201		3
Receivables Write Offs		(4,577)		(2,371)
Foreign Currency Effect and Other		230		(1,496)
Balance at end of the period	$	102,266	$	110,357


	December 27,		June 28,		December 27,		June 28,
	2025		2025		2025		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	4.31	%	—			176,583		—
Other long-term debt	4.74	%	4.74	%		20,618		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						2,497,201		2,583,561
Discount and debt issuance costs – unamortized						(23,101)		(8,832)
Long-term debt					$	2,474,100	$	2,574,729


	Second Quarters Ended				Six Months Ended
	December 27,		December 28,		December 27,		December 28,
	2025		2024		2025		2024

	(Thousands)
Service cost within selling, general and administrative expenses	$	2,719	$	2,870	$	5,437	$	5,740

Interest cost		5,741		6,183		11,483		12,366
Expected return on plan assets		(10,553)		(10,439)		(21,106)		(20,877)
Recognized net actuarial loss and other		2,841		1,287		5,682		2,573
Total net periodic pension benefit within other income (expense), net		(1,971)		(2,969)		(3,941)		(5,938)

Net periodic pension cost (benefit)	$	748	$	(99)	$	1,496	$	(198)

	AVNET, INC.


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


	/s/ PHILIP R. GALLAGHER
	Philip R. Gallagher
	Chief Executive Officer


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