Avnet (NASDAQ:AVT) Releases Earnings Results, Beats Expectations By $0.10 EPS

Avnet (NASDAQ:AVT) announced its earnings results on Wednesday. The company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.10, Briefing.com reports. The firm had revenue of $6.32 billion for the quarter, compared to analysts’ expectations of $6.03 billion. Avnet had a return on equity of 5.91% and a net margin of 1.04%.Avnet’s quarterly revenue was up 11.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.87 EPS. Avnet updated its Q3 2026 guidance to 1.200-1.300 EPS.

Here are the key takeaways from Avnet’s conference call:

• Avnet beat expectations with $6.3 billion in Q2 sales (up ~12% YoY) and adjusted diluted EPS of $1.05, led by record revenues in Asia and broad-based regional growth.
• Operating performance improved — electronic components margin was 3.2%, Farnell margin reached 4.7% (the highest since FY2023), and company adjusted operating margin was 2.7% as SG&A leverage began to improve.
• Cash and balance-sheet progress — Avnet generated $208 million of operating cash, reduced inventory by $126 million (inventory days down to the mid?80s), and lowered gross leverage to 3.9x with a plan to reach ~3x.
• Market dynamics show increasing lead times and emerging upward pricing pressure in areas like memory/storage, controllers and some passives, creating supply?chain opportunities but also potential price/cost volatility.
• Q3 guidance of $6.2–$6.5 billion sales and $1.20–$1.30 EPS assumes a Western recovery and implies continued margin expansion going forward.

Avnet Stock Performance

NASDAQ:AVT opened at $61.44 on Thursday. Avnet has a 1-year low of $39.22 and a 1-year high of $60.52. The company has a current ratio of 2.36, a quick ratio of 1.12 and a debt-to-equity ratio of 0.58. The stock has a market cap of $5.00 billion, a P/E ratio of 22.96, a PEG ratio of 0.41 and a beta of 0.92. The stock has a 50 day simple moving average of $49.38 and a 200 day simple moving average of $51.09.

Avnet Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 17th. Stockholders of record on Wednesday, December 3rd were given a $0.35 dividend. The ex-dividend date of this dividend was Wednesday, December 3rd. This represents a $1.40 annualized dividend and a dividend yield of 2.3%. Avnet’s dividend payout ratio is presently 52.24%.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Wells Fargo & Company reaffirmed an “underweight” rating and set a $48.00 target price on shares of Avnet in a research note on Thursday. Zacks Research raised shares of Avnet from a “strong sell” rating to a “hold” rating in a research report on Monday, October 20th. Truist Financial increased their target price on shares of Avnet from $54.00 to $55.00 and gave the stock a “hold” rating in a research report on Thursday, October 30th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Avnet in a report on Wednesday, October 8th. Three research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $51.00.

Key Headlines Impacting Avnet

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Quarterly beat — Avnet reported $1.05 EPS vs. consensus ~$0.95 and revenue of $6.32B vs. ~$6.03B, driven by double?digit revenue growth year-over-year. Zacks: Avnet Tops Q2 Estimates
• Positive Sentiment: Raised guidance — Management set Q3 FY2026 EPS guidance of $1.20–$1.30 and revenue guidance of $6.2B–$6.5B, above consensus revenue, implying continued top-line momentum. Seeking Alpha: Guidance & Growth
• Positive Sentiment: Asia strength and margin expansion — Company flagged Asia sales topping $3B and management signaled margin expansion for 2026, reinforcing the growth story beyond North America. Seeking Alpha: Asia Sales & Margins
• Positive Sentiment: Management tone and outlook were constructive on the call and in the slides, emphasizing demand recovery and execution — investors reacted positively to the commentary and slides. Yahoo: Q2 Highlights & Outlook
• Neutral Sentiment: Full disclosure available — Earnings call transcript, slide deck and presentation materials were posted for review (useful for digging into product mix, regional trends and margin drivers). Seeking Alpha: Call Transcript
• Neutral Sentiment: Market commentary pieces summarizing the beat/outlook are circulating (helpful for sentiment context but largely reiterate the same beats/guidance). Stamford Advocate: Earnings Snapshot
• Negative Sentiment: Profitability still modest — trailing metrics show a low net margin (~1.0%) and ROE under 6%, indicating earnings leverage and margin expansion are important but not yet realized. Press Release / Slides
• Neutral Sentiment: Short interest reporting appears inconsistent in early postings and doesn’t provide a clear signal — treat reported changes with caution until exchange data is confirmed.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BOKF NA lifted its stake in shares of Avnet by 1,116.7% in the 3rd quarter. BOKF NA now owns 584 shares of the company’s stock valued at $31,000 after purchasing an additional 536 shares during the period. EverSource Wealth Advisors LLC raised its stake in Avnet by 81.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,918 shares of the company’s stock valued at $102,000 after acquiring an additional 863 shares during the period. Osaic Holdings Inc. boosted its stake in Avnet by 21.2% in the 2nd quarter. Osaic Holdings Inc. now owns 2,423 shares of the company’s stock worth $129,000 after purchasing an additional 423 shares during the period. Headlands Technologies LLC purchased a new stake in shares of Avnet in the 2nd quarter valued at about $132,000. Finally, Aquatic Capital Management LLC purchased a new position in shares of Avnet in the 3rd quarter worth about $151,000. Institutional investors own 95.78% of the company’s stock.

Avnet Company Profile

Avnet, Inc (NASDAQ: AVT) is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet’s offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.

Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.