olivLaw · US equity research
Avnet, Inc. AVT
Wholesale-Electronic Parts & Equipment, NEC · SIC 5065 · Vertical: Wholesale-Electronic Parts & Equipment, NEC (SIC 5065)
Avnet is a global electronic component distributor and solutions provider, active for more than a century, serving customers in more than 140 countries. In fiscal 2026 sales rose 24.5% to 27.6 billion USD, and the faster pace in the latest quarter suggests demand for electronic components is recovering.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Avnet, Inc. (AVT) stock was 85.68 USD (−3.44% on the day), with market capitalisation 7.0 bn USD, P/E 21.4 on diluted EPS of 4.01 USD over the last 12 months, dividend yield 1.63%, beta 1.22, 52-week range 44.37–106.94 USD. Latest reported quarter (Q4 2026): revenue of 8.3 bn USD (+47.7% YoY), net income of 126.6 m USD (+1,978.8% YoY), diluted EPS 1.52 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 38.0
- weak (30–45)
- Bollinger (20, 2)
- 83.87 – 100.61
- in the lower half of the band · %B 0.11 · band width 18.1%
- SMA 50 / 200
- 94.75 / 81.60
- mixed trend
- MACD (12, 26, 9)
- -2.51 / -1.86
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −19.3% | −1.1% | −18.2 pp | — |
| 3 months | −11.9% | −0.5% | −11.4 pp | — |
| 6 months | +2.4% | +4.4% | −2.0 pp | — |
| Year to date | +78.2% | +12.3% | +65.9 pp | — |
| 1 year | +81.1% | +13.5% | +67.6 pp | +59.9% |
| 3 years | +83.9% | +76.4% | +7.5 pp | +69.5% |
| 5 years | +112.6% | +63.7% | +48.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 27 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.6 bn | 5.7 bn | 5.3 bn | 5.6 bn | 5.9 bn | 6.3 bn | 7.1 bn | 8.3 bn |
| Cost of revenue | 5.0 bn | 5.1 bn | 4.7 bn | 5.0 bn | 5.3 bn | 5.7 bn | 6.4 bn | 7.4 bn |
| Gross profit | 607.4 m | 596.1 m | 587.9 m | 593.7 m | 614.8 m | 663.0 m | 739.1 m | 865.0 m |
| SG&A | 438.8 m | 436.9 m | 435.5 m | 451.2 m | 464.4 m | 491.7 m | 518.8 m | 547.5 m |
| Operating income | 142.2 m | 155.3 m | 143.3 m | 73.5 m | 142.0 m | 146.2 m | 205.5 m | 231.0 m |
| Depreciation & amortisation | 19.9 m | 17.0 m | 16.4 m | 18.3 m | 16.8 m | 18.6 m | 18.8 m | 22.6 m |
| Interest expense | 64.4 m | 62.4 m | 61.1 m | 58.4 m | 59.8 m | 61.4 m | 63.1 m | 66.5 m |
| Pre-tax income | 74.7 m | 90.3 m | 78.1 m | 7.4 m | 76.8 m | 89.9 m | 140.6 m | 160.2 m |
| Income tax | 15.8 m | 3.0 m | -9.8 m | 1.3 m | 25.1 m | 28.2 m | 46.2 m | 33.6 m |
| Net income | 59.0 m | 87.3 m | 87.9 m | 6.1 m | 51.7 m | 61.7 m | 94.3 m | 126.6 m |
| Diluted EPS | 0.66 | 0.99 | 1.01 | 0.07 ≈ | 0.61 | 0.75 | 1.14 | 1.52 ≈ |
| Operating cash flow | 106.3 m | 337.8 m ≈ | 140.9 m ≈ | 139.5 m | -144.6 m | 208.2 m ≈ | -53.8 m ≈ | -290.7 m |
| Capex | 31.8 m | 29.4 m ≈ | 26.7 m ≈ | 59.6 m | 24.6 m | 15.4 m ≈ | 16.9 m ≈ | 16.8 m |
| Dividends paid | 28.9 m | 28.6 m ≈ | 28.2 m ≈ | 27.7 m | 28.5 m | 28.5 m ≈ | 28.7 m ≈ | 28.7 m |
| Share repurchases | 100.0 m | 52.2 m ≈ | 101.3 m ≈ | 50.0 m | 138.3 m | 0 ≈ | 0 ≈ | 0 |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 79 percentile of its own 29-quarter history (min 4.6, median 11.8, max 44.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 19.5 bn | 17.6 bn | 19.5 bn | 24.3 bn | 26.5 bn | 23.8 bn | 22.2 bn | 27.6 bn |
| Revenue YoY | +2.5% | −9.7% | +10.8% | +24.4% | +9.2% | −10.5% | −6.6% | +24.5% |
| Net income | 176.3 m | -31.1 m | 193.1 m | 692.4 m | 770.8 m | 498.7 m | 240.2 m | 334.4 m |
| Net income YoY | unavailable | −117.6% | unavailable | +258.5% | +11.3% | −35.3% | −51.8% | +39.2% |
| Diluted EPS | 1.59 | -0.31 | 1.93 | 6.94 | 8.26 | 5.43 | 2.75 | 4.01 |
| Diluted EPS YoY | unavailable | −119.5% | unavailable | +259.6% | +19.0% | −34.3% | −49.4% | +45.8% |
| net % | 0.9% | -0.2% | 1.0% | 2.8% | 2.9% | 2.1% | 1.1% | 1.2% |
| Free cash flow | 412.1 m | 656.7 m | 40.6 m | -268.2 m | -908.4 m | 463.5 m | 577.0 m | -354.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 27 Jun 2026
- Cash
- 155.4 m USD
- Financial debt
- 3.2 bn USD
- Net debt
- 3.1 bn USD
- Equity
- 5.0 bn USD
- Total assets
- 15.4 bn USD
- Debt / equity
- 0.64x
- Current ratio
- 1.78x
- ROE
- 6.7%
- ROA
- 2.4%
- FCF margin
- -1.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 19.5 bn | 24.3 bn | 26.5 bn | 23.8 bn | 22.2 bn | 27.6 bn | SEC (XBRL)· 14 Aug 2026verified |
| Cost of revenue | 17.3 bn | 21.3 bn | 23.4 bn | 21.0 bn | 19.8 bn | 24.8 bn | SEC (XBRL)· 14 Aug 2026verified |
| Gross profit | 2.2 bn | 3.0 bn | 3.2 bn | 2.8 bn | 2.4 bn | 2.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| SG&A | 1.9 bn | 2.0 bn | 2.0 bn | 1.9 bn | 1.8 bn | 2.0 bn | SEC (XBRL)· 14 Aug 2026verified |
| Operating income | 281.4 m | 939.0 m | 1.2 bn | 844.4 m | 514.3 m | 724.8 m | SEC (XBRL)· 14 Aug 2026verified |
| Depreciation & amortisation | 131.9 m | 102.3 m | 88.6 m | 86.7 m | 71.6 m | 76.8 m | SEC (XBRL)· 14 Aug 2026verified |
| EBITDA | 413.3 m ≈ | 1.0 bn ≈ | 1.3 bn ≈ | 931.1 m ≈ | 585.9 m ≈ | 801.6 m ≈ | SEC (XBRL)· 14 Aug 2026derived |
| Interest expense | 89.5 m | 100.4 m | 250.9 m | 282.9 m | 246.4 m | 250.7 m | SEC (XBRL)· 14 Aug 2026verified |
| Pre-tax income | 172.9 m | 833.3 m | 982.9 m | 632.3 m | 250.6 m | 467.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Income tax | -20.2 m | 141.0 m | 212.0 m | 133.6 m | 10.4 m | 133.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Net income | 193.1 m | 692.4 m | 770.8 m | 498.7 m | 240.2 m | 334.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Diluted EPS | 1.93 | 6.94 | 8.26 | 5.43 | 2.75 | 4.01 | SEC (XBRL)· 14 Aug 2026verified |
| Weighted average diluted shares | 100.2 m | 99.8 m | 93.4 m | 91.8 m | 87.4 m | 83.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Dividend per share | 0.85 | 1.00 | 1.16 | 1.24 | 1.32 | 1.40 | SEC (XBRL)· 14 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 199.7 m | 153.7 m | 288.2 m | 310.9 m | 192.4 m | 155.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Receivables | 3.6 bn | 4.3 bn | 4.8 bn | 4.4 bn | 4.3 bn | 6.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| Inventories | 3.2 bn | 4.2 bn | 5.5 bn | 5.5 bn | 5.2 bn | 6.1 bn | SEC (XBRL)· 14 Aug 2026verified |
| Current assets | 7.2 bn | 8.9 bn | 10.8 bn | 10.4 bn | 10.0 bn | 13.3 bn | SEC (XBRL)· 14 Aug 2026verified |
| Property, plant & equipment, net | 368.5 m | 315.2 m | 441.6 m | 568.2 m | 667.2 m | 644.6 m | SEC (XBRL)· 14 Aug 2026verified |
| Goodwill | 838.1 m | 758.8 m | 780.6 m | 781.0 m | 837.0 m | 810.2 m | SEC (XBRL)· 14 Aug 2026verified |
| Intangibles (excl. goodwill) | 28.5 m | 12.7 m | 6.5 m | — | — | — | SEC (XBRL)· 18 Aug 2023verified |
| Total assets | 8.9 bn | 10.4 bn | 12.5 bn | 12.2 bn | 12.1 bn | 15.4 bn | SEC (XBRL)· 14 Aug 2026verified |
| Accounts payable | 2.4 bn | 3.4 bn | 3.4 bn | 3.3 bn | 3.5 bn | 6.1 bn | SEC (XBRL)· 14 Aug 2026verified |
| Short-term debt | 23.1 m | 174.4 m | 70.6 m | 492.7 m | 87.3 m | 734.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Long-term debt | 1.2 bn | 1.4 bn | 3.0 bn | 2.4 bn | 2.6 bn | 2.5 bn | SEC (XBRL)· 14 Aug 2026verified |
| Current liabilities | 3.1 bn | 4.3 bn | 4.2 bn | 4.5 bn | 4.1 bn | 7.5 bn | SEC (XBRL)· 14 Aug 2026verified |
| Total liabilities | 4.8 bn | 6.2 bn | 7.7 bn | 7.3 bn | 7.1 bn | 10.4 bn | SEC (XBRL)· 14 Aug 2026verified |
| Equity | 4.1 bn † | 4.2 bn † | 4.8 bn † | 4.9 bn † | 5.0 bn † | 5.0 bn † | SEC (XBRL)· 14 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 90.9 m | -219.3 m | -713.7 m | 690.0 m | 724.5 m | -280.9 m | SEC (XBRL)· 14 Aug 2026verified |
| Capex | 50.4 m | 48.9 m | 194.7 m | 226.5 m | 147.5 m | 73.6 m | SEC (XBRL)· 14 Aug 2026verified |
| Free cash flow | 40.6 m ≈ | -268.2 m ≈ | -908.4 m ≈ | 463.5 m ≈ | 577.0 m ≈ | -354.5 m ≈ | SEC (XBRL)· 14 Aug 2026derived |
| Investing cash flow | -61.2 m | 51.3 m | -211.6 m | -225.5 m | -137.1 m | -71.5 m | SEC (XBRL)· 14 Aug 2026verified |
| Financing cash flow | -314.0 m | 156.1 m | 1.1 bn | -433.8 m | -693.5 m | 315.9 m | SEC (XBRL)· 14 Aug 2026verified |
| Dividends paid | 84.3 m | 98.5 m | 106.3 m | 112.0 m | 113.3 m | 114.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Share repurchases | — | 184.4 m | 221.7 m | 162.7 m | 303.5 m | 138.3 m | SEC (XBRL)· 14 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 22 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 7.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation22
- Balance sheet25
- Quality22
- Growth6
- Returns51
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 18.40 – 101.96 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDA57.84 – 85.18 (Mid 64.41)3 companies used · median multiple 10.4x · quartiles 9.7x – 12.5xARW, ITRN, TEL
- Peers: P/E67.72 – 101.96 (Mid 86.11)4 companies used · median multiple 21.5x · quartiles 16.9x – 25.4xARW, ITRN, RELL, TEL
- Dividend discount (DDM)18.40 – 24.74 (Mid 21.10)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 22/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 6.7% | 36 (on a fixed band) | 11% |
| Net margin · Quality | 1.2% | 20 (vs peers) | 7% |
| FCF conversion · Quality | -106.0% | 0 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 1.4% | 11 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -21.4% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 3.8x | 5 (on a fixed band) | 11% |
| Interest coverage · Balance sheet | 2.9x | 21 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.8x | 81 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 21.4x | 39 (on a fixed band) | 11% |
| EV/EBITDA · Valuation | 12.6x | 22 (on a fixed band) | 11% |
| FCF yield · Valuation | -5.0% | 0 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 3.6% | 51 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet25/100 · 3/3 factors with a value
- Growth6/100 · 2/2 factors with a value
- Quality22/100 · 3/3 factors with a value
- Returns· partial51/100 · 1/2 factors with a value
- Valuation22/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
AVNET, INC. (AVT). Latest full fiscal year: 2026; data up to 2026-06-27.
Figures computed from the financial statements: revenue 27.6 bn USD in 2026; YoY growth 24.5%; net margin 1.2%; ROE 6.7%; net debt/EBITDA 3.8x.
The estimated value range is 57.84–85.18 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 64.41 USD, the price of 85.68 USD leaves a potential of -24.8% (value / price − 1) and a margin of safety of -33.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 22/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 1.8x
What contradicts it
- Net margin: 1.2%
- FCF conversion: -106.0%
- Revenue CAGR 3Y: 1.4%
- EPS CAGR 3Y: -21.4%
- Net debt / EBITDA: 3.8x
- Interest coverage: 2.9x
- EV/EBITDA: 12.6x
- FCF yield: -5.0%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Payout ratio (FCF).
Versus the vertical median
Wholesale-Electronic Parts & Equipment, NEC (SIC 5065) · same industry (4-digit SIC) · compared with 5 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TELTe Connectivity PLC | 63.8 bn | 27.5 | 18.5% | 12.6% | +8.9% | −3% / +68% |
| ARWArrow Electronics, Inc. | 10.3 bn | 12.9 | 12.2% | 2.3% | +10.5% | +88% / +71% |
| AVTAvnet, Inc. | 7.0 bn | 21.4 | 6.7% | 1.2% | +24.5% | +81% / +84% |
| ITRNIturan Location & Control Ltd. | 1.1 bn | 18.2 | 28.8% | 16.1% | +6.8% | +33% / +98% |
| RELLRichardson Electronics, Ltd. | 211.2 m | 24.7 | 5.2% | 3.6% | +9.4% | +87% / +50% |
| DCMDeFi Capital Markets, Inc. | 10.0 m | — | -95.0% | -437.8% | −79.4% | unavailable / unavailable |
1- and 3-year price returns: for AVT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 49.83 Total return -41% · Per year -41% | 88.24 Total return 5% · Per year 5% | 133.10 Total return 57% · Per year 57% |
| 3 years | 45.36 Total return -43% · Per year -17% | 90.65 Total return 11% · Per year 4% | 150.56 Total return 82% · Per year 22% |
| 5 years | 41.28 Total return -46% · Per year -12% | 93.13 Total return 17% · Per year 3% | 170.31 Total return 110% · Per year 16% |
- Exit P/E± 22.66
- Net margin± 15.86
- Annual revenue growth± 13.43
- Annual dilution± 1.33
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 14 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
Avnet is a global electronic component distributor and solutions provider, active for more than a century, serving customers in more than 140 countries 1. In fiscal 2026 sales rose 24.5% to 27.6 billion USD 1, and the faster pace in the latest quarter suggests demand for electronic components is recovering 2.
SWOT
Strengths
- A broad supplier portfolio that lets customers concentrate purchases with one partner.
- Global presence in many countries, with design, logistics and supply chain management capabilities.
- Sales and profitability growth in the latest quarter, with visible operating leverage.
Weaknesses
- Heavy dependence on semiconductors, which makes sales sensitive to the industry cycle.
- Thin gross margin that erodes when the share of lower-margin regions rises.
- High restructuring and integration costs in recent years tied to distribution centre closures.
Opportunities
- A recovery in demand and accelerating mass-market activity could support sales and margin growth.
- The Farnell group may benefit from demand for on-the-board components and test products with rising margins.
- If tariffs ease or become clearer, international business could become more predictable.
Threats
- Geopolitical tensions and trade policies can reduce demand and raise currency volatility.
- Dependence on a small number of large suppliers that can change contract terms.
- Strong competition from large distributors and online channels that can press prices.
Risks
- Semiconductor cyclehigh
Sales closely track the strength or weakness of the semiconductor industry, and a sudden swing into oversupply can lead to order cancellations.
- Supplier dependencehigh
Supplier contracts are generally terminable at will, and a shift in a major supplier's strategy could affect results.
- International operationsmedium
Activity outside the home market exposes the company to currency moves, export rules and political instability.
- Tariffs and trade policymedium
Changes in tariffs can raise costs that may not be fully passed on to customers.
- Information systemslow
Complex IT projects and system failures can disrupt transactions, financial reporting and online sales.
Investment thesis
What would need to be true (bull case)
- Sales growth was strong in fiscal 2026 with operating leverage, and the fourth quarter showed rising margins in both groups.
- Guidance for the first quarter of fiscal 2027 points to another sequential increase, suggesting the demand recovery could continue.
- A lean-inventory distribution model could support returns on capital if margins hold.
What would break the thesis
- Gross margin remains very thin, and a rising share of Asia could limit profitability even as sales grow.
- Dependence on semiconductors and a small number of suppliers makes revenue sensitive to industry shocks.
- Trade tensions and costly restructuring could reduce reported earnings in the coming years.
What to watch
- Delivery of the first-quarter fiscal 2027 sales and adjusted EPS guidanceQ1 2027
- Trend in EC gross margin as the Asia share of sales grows2027
- Timing of the closure of the German distribution centreQ3 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 14 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
Avnet, founded in 1921, works with electronic component manufacturers across the major segments and sells to OEMs, EMS providers and ODMs, from startups to large enterprises 1. The company has two operating groups: Electronic Components (EC), focused on high and medium-volume customers, and Farnell, focused on lower-volume customers who need components quickly for prototyping and testing 1. Both groups operate in the Americas, EMEA and Asia, and Asia is the largest region by sales 1.
Beyond distribution, Avnet offers design, supply chain management, logistics and embedded solutions, which let customers optimize component selection and supply risk without investing in their own warehouses and systems 1. The model relies on franchised distribution agreements that typically include protections against product obsolescence and price erosion 1.
Segments
Electronic Components (EC)
The EC group serves high and medium-volume customers in industrial, automotive, defense and aerospace markets and sells mainly semiconductors, IP&E components and other integrated components 1. EC sales reached 25.85 billion USD in fiscal 2026, up 24.6% 1, and the operating margin was 4.1% in the fourth quarter 2.
Market context
Semiconductors represent about 79% of consolidated sales, so Avnet's performance closely tracks the semiconductor industry cycle 1. Because of geopolitical tensions and supply shortages, customers may over-order, which can later lead to cancellations when shortages ease 1.
About 78% of sales come from outside the United States 1, so trade policy, tariffs and exchange rates directly influence results. The company says tariff-related billings were under 1% of sales in fiscal 2026 1.
Trends
- Acceleration of mass-market activitytailwind
Management says mass-market activity keeps accelerating and that margins grew faster than sales 2, pointing to operating leverage, though this does not guarantee it will continue.
- Trade tensions and tariffsmixed
Shifts in trade policy and tariffs could dampen demand and increase market volatility 1. The company noted the Supreme Court struck down certain tariffs in February 2026, but added that the tariff landscape is shifting rapidly 1.
- Gross margin pressure in ECheadwind
EC gross margin declined in fiscal 2026 due to a higher share of sales from the lower-margin Asia region 1. If this trend persists, it could limit profit growth.
Competitive position
The electronic component distribution industry is competitive, and pricing, product selection and availability must remain attractive 1. The company names Arrow Electronics, Future Electronics, World Peace Group and WT Microelectronics as major EC competitors, and Mouser Electronics, Digi-Key Electronics and RS Components for Farnell 1.
Besides the large players there are smaller specialized competitors focused on specific sectors or narrow geographies 1. Avnet's edge rests on its inventory and distribution agreements that limit obsolescence risk 1.
- Arrow ElectronicsARW
Main competitor of the EC group, named by the company in its annual report.
- Future Electronics
Main competitor for EC, named in the annual report.
- Mouser Electronics
Main competitor for Farnell, an online channel for engineers.
- Digi-Key Electronics
Main competitor for Farnell, named in the annual report.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report15 Oct 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Proxy statement06 Oct 2026
- Current report21 Aug 2026Other events · Financial statements and exhibits
- Annual report14 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report06 Jul 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report01 May 2026
- Current report29 Apr 2026Results of operations · Financial statements and exhibits
- Quarterly report30 Jan 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-06-27 · SEC / Avnet, Inc. · 14 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Avnet, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.