{"success":true,"data":{"pressRelease":{"id":"109386","rtpr_id":"nBwXQsXWa","ticker":"AVT","exchange":"NASDAQ","all_tickers":["AVT"],"title":"Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results","author":"Business Wire","published_at":"2026-08-05T12:00:01.377Z","article_body":"Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results\n\nRecord quarterly sales of $8.3 billion with nearly 50% year-over-year sales\ngrowth and significant margin expansion\n\nElectronic Components operating margin of 4.1% on record sales of $7.8 billion\n\nFarnell operating margin of 9.0% on record sales of $500 million\n\nAvnet, Inc. (Nasdaq: AVT\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.avnet.com%2F&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=AVT&index=1&md5=8cb6407503747efa5605e5ec288bfd0e)\n) today announced results for its fourth quarter and fiscal year 2026 ended\nJune 27, 2026.\n\n“Our fourth quarter results underscore the strength of Avnet’s business\nmodel and the impact of our disciplined execution and long-term strategy. We\ndelivered record sales while growing profitability at more than two and a half\ntimes the rate of sales growth, demonstrating the operating leverage in our\nbusiness model. Momentum continues to build across all regions, end markets\nand customer segments, giving us increasing confidence in our competitive\nposition,” said Avnet Chief Executive Officer Phil Gallagher. “As demand\nimproves and mass market activity continues to accelerate, we are entering\nfiscal 2027 with great momentum. We are well positioned to capture growth\nopportunities, further expand earnings and generate attractive long-term\nreturns for our shareholders.”\n\nFiscal Fourth Quarter Key Financial Highlights:\n\n\n * Record quarterly sales of $8.3 billion, an increase of 48% year over year and\n17% sequentially.\n\n\n* Sequential and year-over-year sales growth across all EC regions and\nFarnell.\n\n\n\n\n * Diluted earnings per share of $1.49, compared with $0.07 in the prior year\nquarter.\n\n\n* Adjusted diluted earnings per share of $2.28 increased 182% year over year.\n\n * Adjusted diluted earnings per share grew 3.8 times greater than sales year\nover year.\n\n\n\n\n * Operating income margin of 2.8% expanded 147 basis points year over year.\n\n\n* Adjusted operating income margin of 3.8% expanded 129 basis points year over\nyear.\n\n * Adjusted operating income grew 2.6 times greater than sales.\n\n * EC operating margin of 4.1%.\n\n * Farnell operating margin of 9.0%.\n\n\n\n\n * Inventory days declined by 6 days to 71 quarter over quarter.\n\n\n* EC inventory days declined by 5 days to under 65 days.\n\n * Farnell inventory days declined by 10 days to under 200 days.\n\n\n\n\n * Returned $29 million to shareholders in dividends.\n\nFiscal 2026 Key Financial Highlights:\n\n\n * Sales of $27.6 billion, an increase of 25% year over year.\n\n * Diluted earnings per share of $4.01, compared with $2.75 in the prior year.\n\n\n* Adjusted diluted earnings per share of $5.67, an increase of 65% year over\nyear.\n\n * Adjusted diluted earnings per share grew more than 2.6 times sales.\n\n\n\n\n * Operating income margin of 2.6%, compared with 2.3% in the prior year.\n\n\n* Adjusted operating income margin of 3.1% expanded 31 basis points year over\nyear.\n\n\n\n\n * Inventory days of 81 decreased 18 days year over year.\n\n * Returned $138 million to shareholders from share repurchases, representing\n3.2% of shares outstanding.\n\n * Returned $114 million to shareholders in dividends.\n\nKey Financial Metrics\n\n($ in millions, except per share data)\n Fourth Quarter Results (GAAP) \n     Jun – 26   Jun – 25   Change Y/Y   March – 26   Change Q/Q \n Sales   $ 8,295.4     $ 5,617.8     47.7 %   $ 7,119.8     16.5 % \n Operating Income   $ 231.0     $ 73.5     214.5 %   $ 205.5     12.4 % \n Operating Income Margin     2.8 %     1.3 %   147 bps     2.9 %   (11) bps \n Diluted Earnings Per Share   $ 1.49     $ 0.07     2,028.6 %   $ 1.14     30.7 % \n Fourth Quarter Results (Non-GAAP)((1)) \n     Jun – 26   Jun – 25   Change Y/Y   March – 26   Change Q/Q \n Adjusted Operating Income   $ 317.9     $ 142.9     122.5 %   $ 220.6     44.1 % \n Adjusted Operating Income Margin     3.8 %     2.5 %   129 bps     3.1 %   73 bps \n Adjusted Diluted Earnings Per Share   $ 2.28     $ 0.81     181.5 %   $ 1.48     54.1 % \n Segment and Geographical Mix \n     Jun – 26   Jun – 25   Change Y/Y   March – 26   Change Q/Q \n Electronic Components (EC) Sales   $ 7,795.3     $ 5,231.3     49.0 %   $ 6,665.1     17.0 % \n EC Operating Income Margin     4.1 %     3.0 %   107 bps     3.5 %   54 bps \n Farnell Sales   $ 500.1     $ 386.5     29.4 %   $ 454.7     10.0 % \n Farnell Operating Income Margin     9.0 %     4.3 %   468 bps     5.2 %   373 bps \n Americas Sales   $ 2,060.7     $ 1,327.0     55.3 %   $ 1,615.0     27.6 % \n EMEA Sales   $ 2,298.9     $ 1,599.7     43.7 %   $ 2,046.3     12.4 % \n Asia Sales   $ 3,935.8     $ 2,691.1     46.3 %   $ 3,458.5     13.8 % \n   \n\n (1)   A reconciliation of non-GAAP financial measures to GAAP financial measures is \n presented in the “Non-GAAP Financial Information” section of this press \n release. \n\n\nGuidance for the First Quarter of Fiscal 2027 Ending on October 3, 2026\n     Guidance Range   Midpoint \n Sales   $9.00B – $9.30B   $9.15B \n Adjusted Diluted EPS((1))   $2.80 – $2.90   $2.85 \n   \n\n (1)   A reconciliation of non-GAAP guidance to GAAP guidance is presented in the \n “Non-GAAP Financial Information” section of this press release. \n\n\nThe first quarter guidance implies sequential sales growth of approximately\n10% at the midpoint and assumes sales growth across all Electronic Components\nregions and Farnell.\n\nThe first quarter guidance also excludes restructuring, integration and other\nexpenses, foreign currency gains and losses, and certain income tax\nadjustments. The first quarter guidance assumes similar interest expense to\nthe fourth quarter of fiscal 2026 and an adjusted effective tax rate of\nbetween 21% and 25%. The first quarter guidance assumes 85 million average\ndiluted shares outstanding. The average currency exchange rates assumed for\nfirst quarter guidance are shown in the table below:\n     Q1 Fiscal         \n     2027   Q4 Fiscal   Q1 Fiscal \n     Guidance   2026   2026 \n Euro to U.S. Dollar   $1.15   $1.16   $1.17 \n GBP to U.S. Dollar   $1.34   $1.34   $1.35 \n\n\nToday’s Conference Call and Webcast Details\n\nAvnet will host a conference call and webcast today at 9:00 a.m. PT / Noon ET\nto discuss its financial results, provide a business update and answer\nquestions.\n\n\n * Live conference call: 877-407-8112 (domestic) or 201-689-8840 (international)\n\n * Live webcast along with slides can be accessed via Avnet’s Investor\nRelations website at \nhttps://ir.avnet.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.avnet.com&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=https%3A%2F%2Fir.avnet.com&index=2&md5=0832325142b9882c342bc839e04db4bc)\n\nor by accessing the webcast directly at \nhttps://avt-q4-2026.open-exchange.net\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Favt-q4-2026.open-exchange.net&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=https%3A%2F%2Favt-q4-2026.open-exchange.net&index=3&md5=78cd3ce88655e2e48afe8f50a4c31759)\n\n * An audio replay of the webcast will be available after the completion of the\ncall and archived on the website for one year\n\nForward-Looking Statements\n\nThis document contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, with respect to the financial\ncondition, results of operations, and business of the Company. You can find\nmany of these statements by looking for words like “believes,”\n“projected,” “plans,” “expects,” “anticipates,” “should,”\n“will,” “may,” “estimates,” or similar expressions. These\nforward-looking statements are subject to numerous assumptions, risks, and\nuncertainties. The following important factors, in addition to those discussed\nelsewhere in the Company’s Annual Report on Form 10-K for the fiscal year\nended June 28, 2025 and subsequent Quarterly Reports on Form 10-Q and Current\nReports on Form 8-K, could affect the Company’s future results of\noperations, and could cause those results or other outcomes to differ\nmaterially from those expressed or implied in the forward-looking statements:\ngeopolitical events and military conflicts; pandemics and other health-related\ncrises; competitive pressures among distributors of electronic components; an\nindustry down-cycle in semiconductors; relationships with key suppliers and\nallocations of products by suppliers; accounts receivable defaults; risks\nrelating to the Company’s international sales and operations, including\nrisks relating to repatriating cash, foreign currency fluctuations, inflation,\nduties and taxes, tariffs, sanctions and trade restrictions, and compliance\nwith international and U.S. laws; risks relating to acquisitions,\ndivestitures, and investments; adverse effects on the Company’s supply\nchain, operations of its distribution centers, shipping costs, third-party\nservice providers, customers, and suppliers, including as a result of issues\ncaused by military conflicts, terrorist attacks, natural and weather-related\ndisasters, pandemics and health related crises, warehouse modernization, and\nrelocation efforts; risks related to cyber security attacks, other privacy and\nsecurity incidents, and information systems failures, including related to\ncurrent or future implementations, integrations, and upgrades; general\neconomic and business conditions (domestic, foreign, and global) affecting the\nCompany’s operations and financial performance and, indirectly, the\nCompany’s credit ratings, debt covenant compliance, liquidity, and access to\nfinancing; constraints on employee retention and hiring; and legislative or\nregulatory changes.\n\nAny forward-looking statement speaks only as of the date on which that\nstatement is made. Except as required by law, the Company assumes no\nobligation to update any forward-looking statement to reflect events or\ncircumstances that occur after the date on which the statement is made.\n\nAbout Avnet\n\nAs a leading global technology distributor and solutions provider, Avnet has\nserved customers’ evolving needs for more than a century. Through regional\nand specialized businesses around the world, we support customers and\nsuppliers at every stage of the product lifecycle. We help companies adapt to\nchange and accelerate the design and supply stages of product development.\nWith a unique viewpoint from the center of the technology supply chain, Avnet\nis a trusted partner that solves complex design and supply chain issues so\ncustomers can realize revenue faster. Learn more about Avnet at www.avnet.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.avnet.com&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=www.avnet.com&index=4&md5=7de3e261883b42c4e907256c396fa49a)\n. (AVT_IR)\n AVNET, INC. \n \n \n \nCONSOLIDATED STATEMENTS OF OPERATIONS \n \n \n \n(UNAUDITED) \n                                   \n     Fourth Quarters Ended   Years Ended \n     June 27,   June 28,   June 27,   June 28, \n     2026   2025   2026   2025 \n     (Thousands, except per share data) \n Sales   $ 8,295,377     $ 5,617,795     $ 27,632,683     $ 22,200,754   \n Cost of sales     7,430,345       5,024,111       24,750,787       19,815,798   \n Gross profit     865,032       593,684       2,881,896       2,384,956   \n Selling, general and administrative expenses     547,506       451,171       2,022,408       1,762,386   \n Restructuring, integration, and other expenses     86,507       69,061       134,706       108,316   \n Operating income     231,019       73,452       724,782       514,254   \n Other expense, net     (4,405)       (7,604)       (6,631)       (17,283)   \n Interest and other financing expenses, net     (66,456)       (58,444)       (250,715)       (246,402)   \n Income before taxes     160,158       7,404       467,436       250,569   \n Income tax expense     33,579       1,315       133,047       10,352   \n Net income   $ 126,579     $ 6,089     $ 334,389     $ 240,217   \n                                   \n Earnings per share:                                 \n Basic   $ 1.54     $ 0.07     $ 4.07     $ 2.78   \n Diluted   $ 1.49     $ 0.07     $ 4.01     $ 2.75   \n                                   \n Shares used to compute earnings per share:                                 \n Basic     82,177       84,112       82,158       86,266   \n Diluted     84,693       85,058       83,415       87,413   \n Cash dividends paid per common share   $ 0.35     $ 0.33     $ 1.40     $ 1.32   \n   \n\n AVNET, INC. \n \n \n \nCONDENSED CONSOLIDATED BALANCE SHEETS \n \n \n \n(UNAUDITED) \n                   \n     June 27,   June 28, \n     2026   2025 \n     (Thousands) \n ASSETS                 \n Current assets:                 \n Cash and cash equivalents   $ 155,396     $ 192,428   \n Receivables     6,882,965       4,327,450   \n Inventories     6,069,419       5,235,485   \n Prepaid and other current assets     226,043       263,374   \n Total current assets     13,333,823       10,018,737   \n Property, plant and equipment, net     644,574       667,247   \n Goodwill     810,163       837,031   \n Operating lease assets     248,958       201,896   \n Other assets     387,875       393,642   \n Total assets   $ 15,425,393     $ 12,118,553   \n                   \n LIABILITIES AND SHAREHOLDERS’ EQUITY                 \n Current liabilities:                 \n Short-term debt   $ 733,952     $ 87,284   \n Accounts payable     6,054,326       3,487,419   \n Accrued expenses and other     659,266       497,154   \n Short-term operating lease liabilities     55,888       56,247   \n Total current liabilities     7,503,432       4,128,104   \n Long-term debt     2,478,864       2,574,729   \n Long-term operating lease liabilities     207,111       159,449   \n Other liabilities     213,483       244,776   \n Total liabilities     10,402,890       7,107,058   \n Shareholders’ equity     5,022,503       5,011,495   \n Total liabilities and shareholders’ equity   $ 15,425,393     $ 12,118,553   \n   \n\n AVNET, INC. \n \n \n \nCONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(UNAUDITED) \n                   \n     Years Ended \n     June 27,   June 28, \n     2026   2025 \n     (Thousands)   \n Cash flows from operating activities:                 \n Net income   $ 334,389     $ 240,217   \n                   \n Non-cash and other reconciling items:                 \n Depreciation and amortization     76,786       71,616   \n Amortization of operating lease assets     57,961       53,579   \n Deferred income taxes     6,010       (105,412)   \n Stock-based compensation     48,692       36,399   \n Other, net     (2,406)       25,942   \n Changes in (net of effects from businesses acquired and divested):                 \n Receivables     (2,614,899)       183,533   \n Inventories     (918,329)       409,553   \n Accounts payable     2,608,416       101,702   \n Accrued expenses and other, net     122,455       (292,625)   \n Net cash flows (used for) provided by operating activities     (280,925)       724,504   \n                   \n Cash flows from financing activities:                 \n Issuance of convertible notes, net of issuance costs     633,750       —   \n Repayments of public notes     (550,000)       —   \n Borrowings under accounts receivable securitization, net     —       84,900   \n Borrowings (repayments) under senior unsecured credit facility, net     157,938       (357,299)   \n Borrowings (repayments) under bank credit facilities and other debt, net     57,033       (2,451)   \n Borrowings under term loan     270,161       —   \n Repurchases of common stock     (138,308)       (303,490)   \n Dividends paid on common stock     (114,361)       (113,310)   \n Other, net     (321)       (1,876)   \n Net cash flows provided by (used for) financing activities     315,892       (693,526)   \n                   \n Cash flows from investing activities:                 \n Purchases of property, plant and equipment     (73,572)       (147,474)   \n Other, net     2,099       10,347   \n Net cash flows used for investing activities     (71,473)       (137,127)   \n                   \n Effect of currency exchange rate changes on cash and cash equivalents     (526)       (12,364)   \n Cash and cash equivalents:                 \n — decrease     (37,032)       (118,513)   \n — at beginning of period     192,428       310,941   \n — at end of period   $ 155,396     $ 192,428   \n\n\nNon-GAAP Financial Information\n\nIn addition to disclosing financial results that are determined in accordance\nwith generally accepted accounting principles in the United States\n(“GAAP”), the Company also discloses certain non-GAAP financial\ninformation including (i) adjusted operating income, (ii) adjusted other\nincome (expense), (iii) adjusted income before income taxes, (iv) adjusted\nincome tax expense (benefit), and (v) adjusted diluted earnings per share.\n\nThere are also references to the impact of foreign currency in the discussion\nof the Company’s results of operations. When the U.S. Dollar strengthens and\nthe stronger exchange rates of the current year are used to translate the\nresults of operations of Avnet’s subsidiaries denominated in foreign\ncurrencies, the resulting impact is a decrease in U.S. Dollars of reported\nresults. Conversely, when the U.S. Dollar weakens and the weaker exchange\nrates of the current year are used to translate the results of operations of\nAvnet’s subsidiaries denominated in foreign currencies, the resulting impact\nis an increase in U.S. Dollars of reported results. In the discussion of the\nCompany’s results of operations, results excluding this impact are referred\nto as “constant currency.” Management believes sales in constant currency\nis a useful measure for evaluating current period performance as compared with\nprior periods and for understanding underlying trends. In order to determine\nthe translation impact of changes in foreign currency exchange rates on sales,\nincome or expense items for subsidiaries reporting in currencies other than\nthe U.S. Dollar, the Company adjusts the average exchange rates used in\ncurrent periods to be consistent with the average exchange rates in effect\nduring the comparative period.\n\nManagement believes that operating income adjusted for restructuring,\nintegration and other expenses, and amortization of acquired intangible\nassets, is a useful measure to help investors better assess and understand the\nCompany’s operating performance. This is especially the case when comparing\nresults with previous periods or forecasting performance for future periods,\nprimarily because management views the excluded items to be outside of\nAvnet’s normal operating results or non-cash in nature. Management analyzes\noperating income without the impact of these items as an indicator of ongoing\nmargin performance and underlying trends in the business. Management also uses\nthese non-GAAP measures to establish operational goals and, in most cases, for\nmeasuring performance for compensation purposes. Management measures operating\nincome for its reportable segments excluding restructuring, integration and\nother expenses, and amortization of acquired intangible assets.\n\nManagement also believes income tax expense (benefit), net income and diluted\nearnings per share adjusted for the impact of the items described above,\nforeign currency gains and losses and certain items impacting income tax\nexpense (benefit) are useful to investors because they provide a measure of\nthe Company’s net profitability on a more comparable basis to historical\nperiods and provide a more meaningful basis for forecasting future\nperformance. Adjustments to income tax expense (benefit) and the effective\nincome tax rate include the effect of changes in tax laws, certain changes in\nvaluation allowances and unrecognized tax benefits, income tax audit\nsettlements and adjustments to the effective tax rate based upon the expected\nlong-term adjusted effective tax rate. Additionally, because of management’s\nfocus on generating shareholder value, of which net profitability is a primary\ndriver, management believes net income and diluted earnings per share\nexcluding the impact of these items provides an important measure of the\nCompany’s net profitability for the investing public.\n\nAdditional non-GAAP metrics management uses are adjusted operating income\nmargin, which is defined as adjusted operating income divided by sales and the\nadjusted effective income tax rate, which is defined as adjusted income tax\nexpense divided by adjusted income before income taxes.\n\nAny analysis of results and outlook on a non-GAAP basis should be used as a\ncomplement to, and in conjunction with, results presented in accordance with\nGAAP.\n     Fiscal   Quarters Ended \n     Year   June 27,   March 28,   December 27,   September 27, \n     2026*   2026   2026   2025   2025 \n     ($ in thousands, except per share amounts) \n GAAP operating income   $ 724,782     $ 231,019     $ 205,535     $ 146,196     $ 142,032   \n Restructuring, integration, and other expenses     134,706       86,507       14,737       25,171       8,291   \n Amortization of intangible assets     1,457       364       364       364       364   \n Adjusted operating income     860,945       317,890       220,636       171,731       150,687   \n                                           \n GAAP other income (expense), net   $ (6,631)     $ (4,405)     $ (1,827)     $ 5,067     $ (5,466)   \n Foreign currency loss (gain)     10,714       3,726       3,444       (2,939)       6,483   \n Adjusted other income, net     4,083       (679)       1,617       2,128       1,017   \n                                           \n GAAP income before income taxes   $ 467,436     $ 160,158     $ 140,570     $ 89,905     $ 76,804   \n Restructuring, integration, and other expenses     134,706       86,507       14,737       25,171       8,291   \n Amortization of intangible assets     1,457       364       364       364       364   \n Foreign currency loss (gain)     10,714       3,726       3,444       (2,939)       6,483   \n Adjusted income before income taxes     614,313       250,755       159,115       112,501       91,942   \n                                           \n GAAP income tax expense   $ 133,047     $ 33,579     $ 46,238     $ 28,172     $ 25,059   \n Restructuring, integration, and other expenses     38,561       23,343       5,901       6,865       2,452   \n Amortization of intangible assets     344       87       86       86       85   \n Foreign currency loss (gain)     1,827       625       758       (1,091)       1,535   \n Income tax expense items, net     (32,487)       40       (16,386)       (8,157)       (7,984)   \n Adjusted income tax expense     141,292       57,674       36,597       25,875       21,147   \n                                           \n GAAP net income   $ 334,389     $ 126,579     $ 94,332     $ 61,733     $ 51,745   \n Restructuring, integration, and other expenses (net of tax)   96,145       63,164       8,836       18,306       5,839   \n Amortization of intangible assets (net of tax)     1,112       277       278       278       279   \n Foreign currency loss (gain) (net of tax)     8,887       3,101       2,686       (1,848)       4,948   \n Income tax expense items, net     32,487       (40)       16,386       8,157       7,984   \n Adjusted net income     473,020       193,081       122,518       86,626       70,795   \n                                           \n GAAP diluted earnings per share   $ 4.01     $ 1.49     $ 1.14     $ 0.75     $ 0.61   \n Restructuring, integration, and other expenses (net of tax)   1.15       0.75       0.11       0.22       0.07   \n Amortization of intangible assets (net of tax)     0.01       0.00       0.00       0.00       0.00   \n Foreign currency loss (gain) (net of tax)     0.11       0.04       0.03       (0.02)       0.06   \n Income tax expense items, net     0.39       —       0.20       0.10       0.10   \n Adjusted diluted EPS     5.67       2.28       1.48       1.05       0.84   \n   \n (*) May not foot/cross foot due to rounding. \n   \n\n     Fiscal   Quarters Ended \n     Year   June 28,   March 29,   December 28,   September 28, \n     2025*   2025   2025   2024   2024 \n     ($ in thousands, except per share amounts) \n GAAP operating income   $ 514,254     $ 73,452     $ 143,251     $ 155,327     $ 142,225   \n Restructuring, integration, and other expenses     108,316       69,061       9,110       3,794       26,351   \n Amortization of intangible assets     1,463       364       364       366       368   \n Adjusted operating income     624,033       142,877       152,725       159,487       168,944   \n                                           \n GAAP other expense, net   $ (17,283)     $ (7,604)     $ (3,992)     $ (2,645)     $ (3,043)   \n Foreign currency loss     29,631       12,811       6,933       5,104       4,783   \n Adjusted other income, net     12,348       5,207       2,941       2,459       1,740   \n                                           \n GAAP income before income taxes   $ 250,569     $ 7,404     $ 78,144     $ 90,283     $ 74,738   \n Restructuring, integration, and other expenses     108,316       69,061       9,110       3,794       26,351   \n Amortization of intangible assets     1,463       364       364       366       368   \n Foreign currency loss     29,631       12,811       6,933       5,104       4,783   \n Adjusted income before income taxes     389,979       89,640       94,551       99,547       106,240   \n                                           \n GAAP income tax expense (benefit)   $ 10,352     $ 1,315     $ (9,775)     $ 3,030     $ 15,782   \n Restructuring, integration, and other expenses     20,671       10,397       2,475       1,142       6,657   \n Amortization of intangible assets     345       86       86       86       87   \n Foreign currency loss     8,800       3,796       1,762       1,630       1,612   \n Income tax expense items, net     49,527       5,023       27,199       17,007       298   \n Adjusted income tax expense     89,695       20,617       21,747       22,895       24,436   \n                                           \n GAAP net income   $ 240,217     $ 6,089     $ 87,919     $ 87,253     $ 58,956   \n Restructuring, integration, and other expenses (net of tax)   87,645       58,664       6,635       2,652       19,694   \n Amortization of intangible assets (net of tax)     1,117       278       278       280       281   \n Foreign currency loss (net of tax)     20,831       9,015       5,171       3,474       3,171   \n Income tax expense items, net     (49,527)       (5,023)       (27,199)       (17,007)       (298)   \n Adjusted net income     300,283       69,023       72,804       76,652       81,804   \n                                           \n GAAP diluted earnings per share   $ 2.75     $ 0.07     $ 1.01     $ 0.99     $ 0.66   \n Restructuring, integration, and other expenses (net of tax)   1.01       0.69       0.08       0.03       0.22   \n Amortization of intangible assets (net of tax)     0.01       0.00       0.00       0.00       0.00   \n Foreign currency loss (net of tax)     0.24       0.11       0.06       0.04       0.04   \n Income tax expense items, net     (0.57)       (0.06)       (0.31)       (0.19)       (0.00)   \n Adjusted diluted EPS     3.44       0.81       0.84       0.87       0.92   \n   \n (*) May not foot/cross foot due to rounding. \n   \n\n\nSales in Constant Currency\n\nThe following table presents the percentage change in sales and the percentage\nchange in sales in constant currency for the fourth quarter and fiscal year\n2026 compared to the fourth quarter and fiscal year 2025.\n     Quarter Ended   Year Ended \n     June 27, 2026   June 27, 2026 \n         Sales       Sales         Sales \n         Year-Year %       Sequential %         Year-Year % \n     Sales   Change in   Sales   Change in   Sales   Change in \n     Year-Year   Constant   Sequential   Constant   Year-Year   Constant \n     % Change   Currency   % Change   Currency   % Change   Currency \n Avnet   47.7 %   47.1 %   16.5 %   16.8 %   24.5 %   22.4 % \n Avnet by region                             \n Americas   55.3 %   55.3 %   27.6 %   27.6 %   22.3 %   22.3 % \n EMEA   43.7 %   40.3 %   12.4 %   13.1 %   20.5 %   13.1 % \n Asia   46.3 %   47.1 %   13.8 %   13.9 %   28.0 %   28.2 % \n Avnet by segment                             \n Electronic Components   49.0 %   48.5 %   17.0 %   17.2 %   24.6 %   22.6 % \n Farnell   29.4 %   27.9 %   10.0 %   10.4 %   23.2 %   19.8 % \n\n\nSegment Financial Information*\n     Quarters Ended   Years Ended \n     June 27,   June 28,   June 27,   June 28, \n     2026   2025   2026   2025 \n     ($ in millions, except margins and sales mix) \n Electronic Components                                 \n Sales   $ 7,795.3     $ 5,231.3     $ 25,851.9     $ 20,755.0   \n Cost of goods sold   $ 7,078.2     $ 4,737.1     $ 23,463.8     $ 18,746.7   \n Gross profit   $ 717.1     $ 494.2     $ 2,388.2     $ 2,008.3   \n Gross profit margin     9.2 %     9.5 %     9.2 %     9.7 % \n Operating income   $ 317.2     $ 157.0     $ 898.5     $ 708.2   \n Operating income margin     4.1 %     3.0 %     3.5 %     3.4 % \n                                   \n Farnell                                 \n Sales   $ 500.1     $ 386.5     $ 1,780.8     $ 1,445.8   \n Cost of goods sold   $ 352.2     $ 287.0     $ 1,287.0     $ 1,069.1   \n Gross profit   $ 147.9     $ 99.5     $ 493.7     $ 376.7   \n Gross profit margin     29.6 %     25.7 %     27.7 %     26.1 % \n Operating income   $ 44.8     $ 16.5     $ 105.7     $ 32.8   \n Operating income margin     9.0 %     4.3 %     5.9 %     2.3 % \n                                   \n Total reportable segment operating income   $ 361.9     $ 173.5     $ 1,004.1     $ 741.0   \n Corporate selling, general and administrative expenses     (44.1 )     (30.6 )     (143.2 )     (116.9 ) \n Restructuring, integration, and other expenses     (86.5 )     (69.1 )     (134.7 )     (108.3 ) \n Amortization of acquired intangible assets     (0.4 )     (0.3 )     (1.5 )     (1.5 ) \n Avnet operating income   $ 231.0     $ 73.5     $ 724.8     $ 514.3   \n                                   \n Sales by geographic area:                                 \n Americas   $ 2,060.7     $ 1,327.0     $ 6,480.8     $ 5,300.0   \n EMEA     2,298.9       1,599.7       7,725.1       6,409.6   \n Asia     3,935.8       2,691.1       13,426.8       10,491.2   \n Avnet sales   $ 8,295.4     $ 5,617.8     $ 27,632.7     $ 22,200.8   \n                                   \n Sales Mix by geographic area:                                 \n Americas     24.8 %     23.6 %     23.4 %     23.9 % \n EMEA     27.7 %     28.5 %     28.0 %     28.9 % \n Asia     47.5 %     47.9 %     48.6 %     47.2 % \n   \n (*) May not foot due to rounding. \n   \n\n\nGuidance Reconciliation\n\nThe following table presents the reconciliation of non-GAAP adjusted diluted\nearnings per share guidance to the expected GAAP diluted earnings per share\nguidance for the first quarter of fiscal 2027.\n     Low End of   High End of \n     Guidance Range   Guidance Range \n Adjusted diluted earnings per share guidance   $ 2.80     $ 2.90   \n Restructuring, integration, and other expenses (net of tax)     (0.23 )     (0.13 ) \n GAAP diluted earnings per share guidance   $ 2.57     $ 2.77   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260805417920/en/\n(https://www.businesswire.com/news/home/20260805417920/en/)\n\nInvestor Relations Contact \n\nInvestorRelations@Avnet.com (mailto:InvestorRelations@Avnet.com)\n\nMedia Relations Contact \n\nLiam Creighton, 480-643-5027\n\nLiam.Creighton@Avnet.com (mailto:Liam.Creighton@Avnet.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwXQsXWa","title":"Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results","author":"Business Wire","ticker":"AVT","created":"2026-08-05T12:00:01.377Z","tickers":["AVT"],"exchange":"NASDAQ","article_body":"Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results\n\nRecord quarterly sales of $8.3 billion with nearly 50% year-over-year sales\ngrowth and significant margin expansion\n\nElectronic Components operating margin of 4.1% on record sales of $7.8 billion\n\nFarnell operating margin of 9.0% on record sales of $500 million\n\nAvnet, Inc. (Nasdaq: AVT\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.avnet.com%2F&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=AVT&index=1&md5=8cb6407503747efa5605e5ec288bfd0e)\n) today announced results for its fourth quarter and fiscal year 2026 ended\nJune 27, 2026.\n\n“Our fourth quarter results underscore the strength of Avnet’s business\nmodel and the impact of our disciplined execution and long-term strategy. We\ndelivered record sales while growing profitability at more than two and a half\ntimes the rate of sales growth, demonstrating the operating leverage in our\nbusiness model. Momentum continues to build across all regions, end markets\nand customer segments, giving us increasing confidence in our competitive\nposition,” said Avnet Chief Executive Officer Phil Gallagher. “As demand\nimproves and mass market activity continues to accelerate, we are entering\nfiscal 2027 with great momentum. We are well positioned to capture growth\nopportunities, further expand earnings and generate attractive long-term\nreturns for our shareholders.”\n\nFiscal Fourth Quarter Key Financial Highlights:\n\n\n * Record quarterly sales of $8.3 billion, an increase of 48% year over year and\n17% sequentially.\n\n\n* Sequential and year-over-year sales growth across all EC regions and\nFarnell.\n\n\n\n\n * Diluted earnings per share of $1.49, compared with $0.07 in the prior year\nquarter.\n\n\n* Adjusted diluted earnings per share of $2.28 increased 182% year over year.\n\n * Adjusted diluted earnings per share grew 3.8 times greater than sales year\nover year.\n\n\n\n\n * Operating income margin of 2.8% expanded 147 basis points year over year.\n\n\n* Adjusted operating income margin of 3.8% expanded 129 basis points year over\nyear.\n\n * Adjusted operating income grew 2.6 times greater than sales.\n\n * EC operating margin of 4.1%.\n\n * Farnell operating margin of 9.0%.\n\n\n\n\n * Inventory days declined by 6 days to 71 quarter over quarter.\n\n\n* EC inventory days declined by 5 days to under 65 days.\n\n * Farnell inventory days declined by 10 days to under 200 days.\n\n\n\n\n * Returned $29 million to shareholders in dividends.\n\nFiscal 2026 Key Financial Highlights:\n\n\n * Sales of $27.6 billion, an increase of 25% year over year.\n\n * Diluted earnings per share of $4.01, compared with $2.75 in the prior year.\n\n\n* Adjusted diluted earnings per share of $5.67, an increase of 65% year over\nyear.\n\n * Adjusted diluted earnings per share grew more than 2.6 times sales.\n\n\n\n\n * Operating income margin of 2.6%, compared with 2.3% in the prior year.\n\n\n* Adjusted operating income margin of 3.1% expanded 31 basis points year over\nyear.\n\n\n\n\n * Inventory days of 81 decreased 18 days year over year.\n\n * Returned $138 million to shareholders from share repurchases, representing\n3.2% of shares outstanding.\n\n * Returned $114 million to shareholders in dividends.\n\nKey Financial Metrics\n\n($ in millions, except per share data)\n Fourth Quarter Results (GAAP) \n     Jun – 26   Jun – 25   Change Y/Y   March – 26   Change Q/Q \n Sales   $ 8,295.4     $ 5,617.8     47.7 %   $ 7,119.8     16.5 % \n Operating Income   $ 231.0     $ 73.5     214.5 %   $ 205.5     12.4 % \n Operating Income Margin     2.8 %     1.3 %   147 bps     2.9 %   (11) bps \n Diluted Earnings Per Share   $ 1.49     $ 0.07     2,028.6 %   $ 1.14     30.7 % \n Fourth Quarter Results (Non-GAAP)((1)) \n     Jun – 26   Jun – 25   Change Y/Y   March – 26   Change Q/Q \n Adjusted Operating Income   $ 317.9     $ 142.9     122.5 %   $ 220.6     44.1 % \n Adjusted Operating Income Margin     3.8 %     2.5 %   129 bps     3.1 %   73 bps \n Adjusted Diluted Earnings Per Share   $ 2.28     $ 0.81     181.5 %   $ 1.48     54.1 % \n Segment and Geographical Mix \n     Jun – 26   Jun – 25   Change Y/Y   March – 26   Change Q/Q \n Electronic Components (EC) Sales   $ 7,795.3     $ 5,231.3     49.0 %   $ 6,665.1     17.0 % \n EC Operating Income Margin     4.1 %     3.0 %   107 bps     3.5 %   54 bps \n Farnell Sales   $ 500.1     $ 386.5     29.4 %   $ 454.7     10.0 % \n Farnell Operating Income Margin     9.0 %     4.3 %   468 bps     5.2 %   373 bps \n Americas Sales   $ 2,060.7     $ 1,327.0     55.3 %   $ 1,615.0     27.6 % \n EMEA Sales   $ 2,298.9     $ 1,599.7     43.7 %   $ 2,046.3     12.4 % \n Asia Sales   $ 3,935.8     $ 2,691.1     46.3 %   $ 3,458.5     13.8 % \n   \n\n (1)   A reconciliation of non-GAAP financial measures to GAAP financial measures is \n presented in the “Non-GAAP Financial Information” section of this press \n release. \n\n\nGuidance for the First Quarter of Fiscal 2027 Ending on October 3, 2026\n     Guidance Range   Midpoint \n Sales   $9.00B – $9.30B   $9.15B \n Adjusted Diluted EPS((1))   $2.80 – $2.90   $2.85 \n   \n\n (1)   A reconciliation of non-GAAP guidance to GAAP guidance is presented in the \n “Non-GAAP Financial Information” section of this press release. \n\n\nThe first quarter guidance implies sequential sales growth of approximately\n10% at the midpoint and assumes sales growth across all Electronic Components\nregions and Farnell.\n\nThe first quarter guidance also excludes restructuring, integration and other\nexpenses, foreign currency gains and losses, and certain income tax\nadjustments. The first quarter guidance assumes similar interest expense to\nthe fourth quarter of fiscal 2026 and an adjusted effective tax rate of\nbetween 21% and 25%. The first quarter guidance assumes 85 million average\ndiluted shares outstanding. The average currency exchange rates assumed for\nfirst quarter guidance are shown in the table below:\n     Q1 Fiscal         \n     2027   Q4 Fiscal   Q1 Fiscal \n     Guidance   2026   2026 \n Euro to U.S. Dollar   $1.15   $1.16   $1.17 \n GBP to U.S. Dollar   $1.34   $1.34   $1.35 \n\n\nToday’s Conference Call and Webcast Details\n\nAvnet will host a conference call and webcast today at 9:00 a.m. PT / Noon ET\nto discuss its financial results, provide a business update and answer\nquestions.\n\n\n * Live conference call: 877-407-8112 (domestic) or 201-689-8840 (international)\n\n * Live webcast along with slides can be accessed via Avnet’s Investor\nRelations website at \nhttps://ir.avnet.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.avnet.com&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=https%3A%2F%2Fir.avnet.com&index=2&md5=0832325142b9882c342bc839e04db4bc)\n\nor by accessing the webcast directly at \nhttps://avt-q4-2026.open-exchange.net\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Favt-q4-2026.open-exchange.net&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=https%3A%2F%2Favt-q4-2026.open-exchange.net&index=3&md5=78cd3ce88655e2e48afe8f50a4c31759)\n\n * An audio replay of the webcast will be available after the completion of the\ncall and archived on the website for one year\n\nForward-Looking Statements\n\nThis document contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, with respect to the financial\ncondition, results of operations, and business of the Company. You can find\nmany of these statements by looking for words like “believes,”\n“projected,” “plans,” “expects,” “anticipates,” “should,”\n“will,” “may,” “estimates,” or similar expressions. These\nforward-looking statements are subject to numerous assumptions, risks, and\nuncertainties. The following important factors, in addition to those discussed\nelsewhere in the Company’s Annual Report on Form 10-K for the fiscal year\nended June 28, 2025 and subsequent Quarterly Reports on Form 10-Q and Current\nReports on Form 8-K, could affect the Company’s future results of\noperations, and could cause those results or other outcomes to differ\nmaterially from those expressed or implied in the forward-looking statements:\ngeopolitical events and military conflicts; pandemics and other health-related\ncrises; competitive pressures among distributors of electronic components; an\nindustry down-cycle in semiconductors; relationships with key suppliers and\nallocations of products by suppliers; accounts receivable defaults; risks\nrelating to the Company’s international sales and operations, including\nrisks relating to repatriating cash, foreign currency fluctuations, inflation,\nduties and taxes, tariffs, sanctions and trade restrictions, and compliance\nwith international and U.S. laws; risks relating to acquisitions,\ndivestitures, and investments; adverse effects on the Company’s supply\nchain, operations of its distribution centers, shipping costs, third-party\nservice providers, customers, and suppliers, including as a result of issues\ncaused by military conflicts, terrorist attacks, natural and weather-related\ndisasters, pandemics and health related crises, warehouse modernization, and\nrelocation efforts; risks related to cyber security attacks, other privacy and\nsecurity incidents, and information systems failures, including related to\ncurrent or future implementations, integrations, and upgrades; general\neconomic and business conditions (domestic, foreign, and global) affecting the\nCompany’s operations and financial performance and, indirectly, the\nCompany’s credit ratings, debt covenant compliance, liquidity, and access to\nfinancing; constraints on employee retention and hiring; and legislative or\nregulatory changes.\n\nAny forward-looking statement speaks only as of the date on which that\nstatement is made. Except as required by law, the Company assumes no\nobligation to update any forward-looking statement to reflect events or\ncircumstances that occur after the date on which the statement is made.\n\nAbout Avnet\n\nAs a leading global technology distributor and solutions provider, Avnet has\nserved customers’ evolving needs for more than a century. Through regional\nand specialized businesses around the world, we support customers and\nsuppliers at every stage of the product lifecycle. We help companies adapt to\nchange and accelerate the design and supply stages of product development.\nWith a unique viewpoint from the center of the technology supply chain, Avnet\nis a trusted partner that solves complex design and supply chain issues so\ncustomers can realize revenue faster. Learn more about Avnet at www.avnet.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.avnet.com&esheet=54583778&newsitemid=20260805417920&lan=en-US&anchor=www.avnet.com&index=4&md5=7de3e261883b42c4e907256c396fa49a)\n. (AVT_IR)\n AVNET, INC. \n \n \n \nCONSOLIDATED STATEMENTS OF OPERATIONS \n \n \n \n(UNAUDITED) \n                                   \n     Fourth Quarters Ended   Years Ended \n     June 27,   June 28,   June 27,   June 28, \n     2026   2025   2026   2025 \n     (Thousands, except per share data) \n Sales   $ 8,295,377     $ 5,617,795     $ 27,632,683     $ 22,200,754   \n Cost of sales     7,430,345       5,024,111       24,750,787       19,815,798   \n Gross profit     865,032       593,684       2,881,896       2,384,956   \n Selling, general and administrative expenses     547,506       451,171       2,022,408       1,762,386   \n Restructuring, integration, and other expenses     86,507       69,061       134,706       108,316   \n Operating income     231,019       73,452       724,782       514,254   \n Other expense, net     (4,405)       (7,604)       (6,631)       (17,283)   \n Interest and other financing expenses, net     (66,456)       (58,444)       (250,715)       (246,402)   \n Income before taxes     160,158       7,404       467,436       250,569   \n Income tax expense     33,579       1,315       133,047       10,352   \n Net income   $ 126,579     $ 6,089     $ 334,389     $ 240,217   \n                                   \n Earnings per share:                                 \n Basic   $ 1.54     $ 0.07     $ 4.07     $ 2.78   \n Diluted   $ 1.49     $ 0.07     $ 4.01     $ 2.75   \n                                   \n Shares used to compute earnings per share:                                 \n Basic     82,177       84,112       82,158       86,266   \n Diluted     84,693       85,058       83,415       87,413   \n Cash dividends paid per common share   $ 0.35     $ 0.33     $ 1.40     $ 1.32   \n   \n\n AVNET, INC. \n \n \n \nCONDENSED CONSOLIDATED BALANCE SHEETS \n \n \n \n(UNAUDITED) \n                   \n     June 27,   June 28, \n     2026   2025 \n     (Thousands) \n ASSETS                 \n Current assets:                 \n Cash and cash equivalents   $ 155,396     $ 192,428   \n Receivables     6,882,965       4,327,450   \n Inventories     6,069,419       5,235,485   \n Prepaid and other current assets     226,043       263,374   \n Total current assets     13,333,823       10,018,737   \n Property, plant and equipment, net     644,574       667,247   \n Goodwill     810,163       837,031   \n Operating lease assets     248,958       201,896   \n Other assets     387,875       393,642   \n Total assets   $ 15,425,393     $ 12,118,553   \n                   \n LIABILITIES AND SHAREHOLDERS’ EQUITY                 \n Current liabilities:                 \n Short-term debt   $ 733,952     $ 87,284   \n Accounts payable     6,054,326       3,487,419   \n Accrued expenses and other     659,266       497,154   \n Short-term operating lease liabilities     55,888       56,247   \n Total current liabilities     7,503,432       4,128,104   \n Long-term debt     2,478,864       2,574,729   \n Long-term operating lease liabilities     207,111       159,449   \n Other liabilities     213,483       244,776   \n Total liabilities     10,402,890       7,107,058   \n Shareholders’ equity     5,022,503       5,011,495   \n Total liabilities and shareholders’ equity   $ 15,425,393     $ 12,118,553   \n   \n\n AVNET, INC. \n \n \n \nCONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(UNAUDITED) \n                   \n     Years Ended \n     June 27,   June 28, \n     2026   2025 \n     (Thousands)   \n Cash flows from operating activities:                 \n Net income   $ 334,389     $ 240,217   \n                   \n Non-cash and other reconciling items:                 \n Depreciation and amortization     76,786       71,616   \n Amortization of operating lease assets     57,961       53,579   \n Deferred income taxes     6,010       (105,412)   \n Stock-based compensation     48,692       36,399   \n Other, net     (2,406)       25,942   \n Changes in (net of effects from businesses acquired and divested):                 \n Receivables     (2,614,899)       183,533   \n Inventories     (918,329)       409,553   \n Accounts payable     2,608,416       101,702   \n Accrued expenses and other, net     122,455       (292,625)   \n Net cash flows (used for) provided by operating activities     (280,925)       724,504   \n                   \n Cash flows from financing activities:                 \n Issuance of convertible notes, net of issuance costs     633,750       —   \n Repayments of public notes     (550,000)       —   \n Borrowings under accounts receivable securitization, net     —       84,900   \n Borrowings (repayments) under senior unsecured credit facility, net     157,938       (357,299)   \n Borrowings (repayments) under bank credit facilities and other debt, net     57,033       (2,451)   \n Borrowings under term loan     270,161       —   \n Repurchases of common stock     (138,308)       (303,490)   \n Dividends paid on common stock     (114,361)       (113,310)   \n Other, net     (321)       (1,876)   \n Net cash flows provided by (used for) financing activities     315,892       (693,526)   \n                   \n Cash flows from investing activities:                 \n Purchases of property, plant and equipment     (73,572)       (147,474)   \n Other, net     2,099       10,347   \n Net cash flows used for investing activities     (71,473)       (137,127)   \n                   \n Effect of currency exchange rate changes on cash and cash equivalents     (526)       (12,364)   \n Cash and cash equivalents:                 \n — decrease     (37,032)       (118,513)   \n — at beginning of period     192,428       310,941   \n — at end of period   $ 155,396     $ 192,428   \n\n\nNon-GAAP Financial Information\n\nIn addition to disclosing financial results that are determined in accordance\nwith generally accepted accounting principles in the United States\n(“GAAP”), the Company also discloses certain non-GAAP financial\ninformation including (i) adjusted operating income, (ii) adjusted other\nincome (expense), (iii) adjusted income before income taxes, (iv) adjusted\nincome tax expense (benefit), and (v) adjusted diluted earnings per share.\n\nThere are also references to the impact of foreign currency in the discussion\nof the Company’s results of operations. When the U.S. Dollar strengthens and\nthe stronger exchange rates of the current year are used to translate the\nresults of operations of Avnet’s subsidiaries denominated in foreign\ncurrencies, the resulting impact is a decrease in U.S. Dollars of reported\nresults. Conversely, when the U.S. Dollar weakens and the weaker exchange\nrates of the current year are used to translate the results of operations of\nAvnet’s subsidiaries denominated in foreign currencies, the resulting impact\nis an increase in U.S. Dollars of reported results. In the discussion of the\nCompany’s results of operations, results excluding this impact are referred\nto as “constant currency.” Management believes sales in constant currency\nis a useful measure for evaluating current period performance as compared with\nprior periods and for understanding underlying trends. In order to determine\nthe translation impact of changes in foreign currency exchange rates on sales,\nincome or expense items for subsidiaries reporting in currencies other than\nthe U.S. Dollar, the Company adjusts the average exchange rates used in\ncurrent periods to be consistent with the average exchange rates in effect\nduring the comparative period.\n\nManagement believes that operating income adjusted for restructuring,\nintegration and other expenses, and amortization of acquired intangible\nassets, is a useful measure to help investors better assess and understand the\nCompany’s operating performance. This is especially the case when comparing\nresults with previous periods or forecasting performance for future periods,\nprimarily because management views the excluded items to be outside of\nAvnet’s normal operating results or non-cash in nature. Management analyzes\noperating income without the impact of these items as an indicator of ongoing\nmargin performance and underlying trends in the business. Management also uses\nthese non-GAAP measures to establish operational goals and, in most cases, for\nmeasuring performance for compensation purposes. Management measures operating\nincome for its reportable segments excluding restructuring, integration and\nother expenses, and amortization of acquired intangible assets.\n\nManagement also believes income tax expense (benefit), net income and diluted\nearnings per share adjusted for the impact of the items described above,\nforeign currency gains and losses and certain items impacting income tax\nexpense (benefit) are useful to investors because they provide a measure of\nthe Company’s net profitability on a more comparable basis to historical\nperiods and provide a more meaningful basis for forecasting future\nperformance. Adjustments to income tax expense (benefit) and the effective\nincome tax rate include the effect of changes in tax laws, certain changes in\nvaluation allowances and unrecognized tax benefits, income tax audit\nsettlements and adjustments to the effective tax rate based upon the expected\nlong-term adjusted effective tax rate. Additionally, because of management’s\nfocus on generating shareholder value, of which net profitability is a primary\ndriver, management believes net income and diluted earnings per share\nexcluding the impact of these items provides an important measure of the\nCompany’s net profitability for the investing public.\n\nAdditional non-GAAP metrics management uses are adjusted operating income\nmargin, which is defined as adjusted operating income divided by sales and the\nadjusted effective income tax rate, which is defined as adjusted income tax\nexpense divided by adjusted income before income taxes.\n\nAny analysis of results and outlook on a non-GAAP basis should be used as a\ncomplement to, and in conjunction with, results presented in accordance with\nGAAP.\n     Fiscal   Quarters Ended \n     Year   June 27,   March 28,   December 27,   September 27, \n     2026*   2026   2026   2025   2025 \n     ($ in thousands, except per share amounts) \n GAAP operating income   $ 724,782     $ 231,019     $ 205,535     $ 146,196     $ 142,032   \n Restructuring, integration, and other expenses     134,706       86,507       14,737       25,171       8,291   \n Amortization of intangible assets     1,457       364       364       364       364   \n Adjusted operating income     860,945       317,890       220,636       171,731       150,687   \n                                           \n GAAP other income (expense), net   $ (6,631)     $ (4,405)     $ (1,827)     $ 5,067     $ (5,466)   \n Foreign currency loss (gain)     10,714       3,726       3,444       (2,939)       6,483   \n Adjusted other income, net     4,083       (679)       1,617       2,128       1,017   \n                                           \n GAAP income before income taxes   $ 467,436     $ 160,158     $ 140,570     $ 89,905     $ 76,804   \n Restructuring, integration, and other expenses     134,706       86,507       14,737       25,171       8,291   \n Amortization of intangible assets     1,457       364       364       364       364   \n Foreign currency loss (gain)     10,714       3,726       3,444       (2,939)       6,483   \n Adjusted income before income taxes     614,313       250,755       159,115       112,501       91,942   \n                                           \n GAAP income tax expense   $ 133,047     $ 33,579     $ 46,238     $ 28,172     $ 25,059   \n Restructuring, integration, and other expenses     38,561       23,343       5,901       6,865       2,452   \n Amortization of intangible assets     344       87       86       86       85   \n Foreign currency loss (gain)     1,827       625       758       (1,091)       1,535   \n Income tax expense items, net     (32,487)       40       (16,386)       (8,157)       (7,984)   \n Adjusted income tax expense     141,292       57,674       36,597       25,875       21,147   \n                                           \n GAAP net income   $ 334,389     $ 126,579     $ 94,332     $ 61,733     $ 51,745   \n Restructuring, integration, and other expenses (net of tax)   96,145       63,164       8,836       18,306       5,839   \n Amortization of intangible assets (net of tax)     1,112       277       278       278       279   \n Foreign currency loss (gain) (net of tax)     8,887       3,101       2,686       (1,848)       4,948   \n Income tax expense items, net     32,487       (40)       16,386       8,157       7,984   \n Adjusted net income     473,020       193,081       122,518       86,626       70,795   \n                                           \n GAAP diluted earnings per share   $ 4.01     $ 1.49     $ 1.14     $ 0.75     $ 0.61   \n Restructuring, integration, and other expenses (net of tax)   1.15       0.75       0.11       0.22       0.07   \n Amortization of intangible assets (net of tax)     0.01       0.00       0.00       0.00       0.00   \n Foreign currency loss (gain) (net of tax)     0.11       0.04       0.03       (0.02)       0.06   \n Income tax expense items, net     0.39       —       0.20       0.10       0.10   \n Adjusted diluted EPS     5.67       2.28       1.48       1.05       0.84   \n   \n (*) May not foot/cross foot due to rounding. \n   \n\n     Fiscal   Quarters Ended \n     Year   June 28,   March 29,   December 28,   September 28, \n     2025*   2025   2025   2024   2024 \n     ($ in thousands, except per share amounts) \n GAAP operating income   $ 514,254     $ 73,452     $ 143,251     $ 155,327     $ 142,225   \n Restructuring, integration, and other expenses     108,316       69,061       9,110       3,794       26,351   \n Amortization of intangible assets     1,463       364       364       366       368   \n Adjusted operating income     624,033       142,877       152,725       159,487       168,944   \n                                           \n GAAP other expense, net   $ (17,283)     $ (7,604)     $ (3,992)     $ (2,645)     $ (3,043)   \n Foreign currency loss     29,631       12,811       6,933       5,104       4,783   \n Adjusted other income, net     12,348       5,207       2,941       2,459       1,740   \n                                           \n GAAP income before income taxes   $ 250,569     $ 7,404     $ 78,144     $ 90,283     $ 74,738   \n Restructuring, integration, and other expenses     108,316       69,061       9,110       3,794       26,351   \n Amortization of intangible assets     1,463       364       364       366       368   \n Foreign currency loss     29,631       12,811       6,933       5,104       4,783   \n Adjusted income before income taxes     389,979       89,640       94,551       99,547       106,240   \n                                           \n GAAP income tax expense (benefit)   $ 10,352     $ 1,315     $ (9,775)     $ 3,030     $ 15,782   \n Restructuring, integration, and other expenses     20,671       10,397       2,475       1,142       6,657   \n Amortization of intangible assets     345       86       86       86       87   \n Foreign currency loss     8,800       3,796       1,762       1,630       1,612   \n Income tax expense items, net     49,527       5,023       27,199       17,007       298   \n Adjusted income tax expense     89,695       20,617       21,747       22,895       24,436   \n                                           \n GAAP net income   $ 240,217     $ 6,089     $ 87,919     $ 87,253     $ 58,956   \n Restructuring, integration, and other expenses (net of tax)   87,645       58,664       6,635       2,652       19,694   \n Amortization of intangible assets (net of tax)     1,117       278       278       280       281   \n Foreign currency loss (net of tax)     20,831       9,015       5,171       3,474       3,171   \n Income tax expense items, net     (49,527)       (5,023)       (27,199)       (17,007)       (298)   \n Adjusted net income     300,283       69,023       72,804       76,652       81,804   \n                                           \n GAAP diluted earnings per share   $ 2.75     $ 0.07     $ 1.01     $ 0.99     $ 0.66   \n Restructuring, integration, and other expenses (net of tax)   1.01       0.69       0.08       0.03       0.22   \n Amortization of intangible assets (net of tax)     0.01       0.00       0.00       0.00       0.00   \n Foreign currency loss (net of tax)     0.24       0.11       0.06       0.04       0.04   \n Income tax expense items, net     (0.57)       (0.06)       (0.31)       (0.19)       (0.00)   \n Adjusted diluted EPS     3.44       0.81       0.84       0.87       0.92   \n   \n (*) May not foot/cross foot due to rounding. \n   \n\n\nSales in Constant Currency\n\nThe following table presents the percentage change in sales and the percentage\nchange in sales in constant currency for the fourth quarter and fiscal year\n2026 compared to the fourth quarter and fiscal year 2025.\n     Quarter Ended   Year Ended \n     June 27, 2026   June 27, 2026 \n         Sales       Sales         Sales \n         Year-Year %       Sequential %         Year-Year % \n     Sales   Change in   Sales   Change in   Sales   Change in \n     Year-Year   Constant   Sequential   Constant   Year-Year   Constant \n     % Change   Currency   % Change   Currency   % Change   Currency \n Avnet   47.7 %   47.1 %   16.5 %   16.8 %   24.5 %   22.4 % \n Avnet by region                             \n Americas   55.3 %   55.3 %   27.6 %   27.6 %   22.3 %   22.3 % \n EMEA   43.7 %   40.3 %   12.4 %   13.1 %   20.5 %   13.1 % \n Asia   46.3 %   47.1 %   13.8 %   13.9 %   28.0 %   28.2 % \n Avnet by segment                             \n Electronic Components   49.0 %   48.5 %   17.0 %   17.2 %   24.6 %   22.6 % \n Farnell   29.4 %   27.9 %   10.0 %   10.4 %   23.2 %   19.8 % \n\n\nSegment Financial Information*\n     Quarters Ended   Years Ended \n     June 27,   June 28,   June 27,   June 28, \n     2026   2025   2026   2025 \n     ($ in millions, except margins and sales mix) \n Electronic Components                                 \n Sales   $ 7,795.3     $ 5,231.3     $ 25,851.9     $ 20,755.0   \n Cost of goods sold   $ 7,078.2     $ 4,737.1     $ 23,463.8     $ 18,746.7   \n Gross profit   $ 717.1     $ 494.2     $ 2,388.2     $ 2,008.3   \n Gross profit margin     9.2 %     9.5 %     9.2 %     9.7 % \n Operating income   $ 317.2     $ 157.0     $ 898.5     $ 708.2   \n Operating income margin     4.1 %     3.0 %     3.5 %     3.4 % \n                                   \n Farnell                                 \n Sales   $ 500.1     $ 386.5     $ 1,780.8     $ 1,445.8   \n Cost of goods sold   $ 352.2     $ 287.0     $ 1,287.0     $ 1,069.1   \n Gross profit   $ 147.9     $ 99.5     $ 493.7     $ 376.7   \n Gross profit margin     29.6 %     25.7 %     27.7 %     26.1 % \n Operating income   $ 44.8     $ 16.5     $ 105.7     $ 32.8   \n Operating income margin     9.0 %     4.3 %     5.9 %     2.3 % \n                                   \n Total reportable segment operating income   $ 361.9     $ 173.5     $ 1,004.1     $ 741.0   \n Corporate selling, general and administrative expenses     (44.1 )     (30.6 )     (143.2 )     (116.9 ) \n Restructuring, integration, and other expenses     (86.5 )     (69.1 )     (134.7 )     (108.3 ) \n Amortization of acquired intangible assets     (0.4 )     (0.3 )     (1.5 )     (1.5 ) \n Avnet operating income   $ 231.0     $ 73.5     $ 724.8     $ 514.3   \n                                   \n Sales by geographic area:                                 \n Americas   $ 2,060.7     $ 1,327.0     $ 6,480.8     $ 5,300.0   \n EMEA     2,298.9       1,599.7       7,725.1       6,409.6   \n Asia     3,935.8       2,691.1       13,426.8       10,491.2   \n Avnet sales   $ 8,295.4     $ 5,617.8     $ 27,632.7     $ 22,200.8   \n                                   \n Sales Mix by geographic area:                                 \n Americas     24.8 %     23.6 %     23.4 %     23.9 % \n EMEA     27.7 %     28.5 %     28.0 %     28.9 % \n Asia     47.5 %     47.9 %     48.6 %     47.2 % \n   \n (*) May not foot due to rounding. \n   \n\n\nGuidance Reconciliation\n\nThe following table presents the reconciliation of non-GAAP adjusted diluted\nearnings per share guidance to the expected GAAP diluted earnings per share\nguidance for the first quarter of fiscal 2027.\n     Low End of   High End of \n     Guidance Range   Guidance Range \n Adjusted diluted earnings per share guidance   $ 2.80     $ 2.90   \n Restructuring, integration, and other expenses (net of tax)     (0.23 )     (0.13 ) \n GAAP diluted earnings per share guidance   $ 2.57     $ 2.77   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260805417920/en/\n(https://www.businesswire.com/news/home/20260805417920/en/)\n\nInvestor Relations Contact \n\nInvestorRelations@Avnet.com (mailto:InvestorRelations@Avnet.com)\n\nMedia Relations Contact \n\nLiam Creighton, 480-643-5027\n\nLiam.Creighton@Avnet.com (mailto:Liam.Creighton@Avnet.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-05T12:00:01.955982271Z","server_sent_at_ms":1785931201955},"received_at":"2026-08-05T12:00:02.008Z","source_url":"https://www.businesswire.com/news/home/20260805417920/en/"},"analysis":{"id":"98417","press_release_id":"109386","analysis_json":{"industry":{"label":"Technology Distributors","sector":"Information Technology"},"redFlags":["Short-term debt increased significantly to $734M from $87M year-over-year","Accounts payable surged to $6.05B from $3.49B, indicating extended payment terms or supply chain buildup"],"eventType":"earnings","narrative":"Avnet delivered record Q4 sales of $8.3 billion, up 48% year-over-year, with adjusted diluted EPS surging 182% to $2.28.\n\nOperating leverage drove adjusted operating margins to 3.8%, up 129 basis points, while inventory days improved by 6 days to 71.\n\nFor fiscal 2027, the company expects Q1 sales of $9.00B-$9.30B and adjusted EPS 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