Avnet (NASDAQ:AVT) Announces Quarterly Earnings Results

Key Points

• Avnet beat expectations with $1.48 EPS vs. $1.33 expected and $7.12 billion revenue (up ~34% YoY), and raised Q4 guidance to $1.70–$1.80 EPS and $7.3–$7.6 billion in sales.
• Demand strengthened across key end markets—data center, industrial and networking—with Electronic Components delivering record revenues and book‑to‑bill above parity in all regions; Asia reached a record ~$3.5 billion in the quarter.
• Operational and balance‑sheet improvements included inventory days down to 77, working capital days of 76, gross leverage reduced to 3.6x with a plan to reach ~3x, and continued shareholder returns (quarterly dividend of $0.35 and remaining buyback authorization ~$226M).

Avnet (NASDAQ:AVT - Get Free Report) posted its earnings results on Wednesday. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.33 by $0.15, FiscalAI reports. The firm had revenue of $7.12 billion during the quarter, compared to the consensus estimate of $6.39 billion. Avnet had a return on equity of 6.08% and a net margin of 0.90%.The business's quarterly revenue was up 34.0% on a year-over-year basis. During the same period last year, the company earned $0.84 earnings per share. Avnet updated its Q4 2026 guidance to 1.700-1.800 EPS.

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

• Record quarter: Avnet reported $7.1 billion in sales (up 34% YoY), with Electronic Components delivering record revenues, adjusted EPS of $1.48 above guidance, and consecutive operating margin expansion (EC 3.5%, Farnell 5.2%).
• Demand and backlog strengthened across key end markets—data center, industrial and networking—book-to-bill is above parity in all regions, and Asia reached a record ~$3.5 billion in the quarter.
• Working capital and leverage improvement: inventory days fell to 77 (below the near-term target of 80), working capital days to 76, gross leverage down to 3.6x with a plan to reach ~3x by year-end and ~$1.7 billion of committed borrowing capacity.
• Pricing and supply dynamics: management said roughly half of sequential sales growth was driven by higher memory prices, lead times have extended in over 50% of tracked product categories, and additional price increases are expected in coming months.
• Outlook and capital allocation: Q4 guidance of $7.3–$7.6 billion sales and $1.70–$1.80 EPS, continued investments in digital/distribution, and ongoing shareholder returns (YTD $224M; $226M of buyback authorization remaining).

Avnet Stock Up 2.0%

NASDAQ:AVT traded up $1.53 on Wednesday, hitting $79.81. The stock had a trading volume of 2,113,459 shares, compared to its average volume of 1,161,221. The company has a quick ratio of 1.07, a current ratio of 2.07 and a debt-to-equity ratio of 0.50. Avnet has a 52 week low of $44.25 and a 52 week high of $82.51. The business's fifty day moving average is $65.70 and its 200 day moving average is $56.59. The company has a market cap of $6.53 billion, a PE ratio of 32.73, a P/E/G ratio of 0.58 and a beta of 0.90.

Avnet Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Wednesday, March 4th were paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Wednesday, March 4th. Avnet's dividend payout ratio is 57.38%.

Hedge Funds Weigh In On Avnet

A number of institutional investors have recently modified their holdings of AVT. AQR Capital Management LLC raised its position in shares of Avnet by 30.7% during the fourth quarter. AQR Capital Management LLC now owns 2,961,608 shares of the company's stock worth $142,394,000 after purchasing an additional 695,929 shares during the period. Jain Global LLC acquired a new position in shares of Avnet during the fourth quarter worth approximately $18,873,000. Loews Corp raised its position in shares of Avnet by 258.3% during the fourth quarter. Loews Corp now owns 430,000 shares of the company's stock worth $20,674,000 after purchasing an additional 310,000 shares during the period. Millennium Management LLC raised its position in shares of Avnet by 75.3% during the fourth quarter. Millennium Management LLC now owns 654,695 shares of the company's stock worth $31,478,000 after purchasing an additional 281,273 shares during the period. Finally, First Trust Advisors LP raised its position in shares of Avnet by 36.8% during the fourth quarter. First Trust Advisors LP now owns 928,497 shares of the company's stock worth $44,642,000 after purchasing an additional 249,767 shares during the period. 95.78% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have commented on the company. Wall Street Zen upgraded Avnet from a "hold" rating to a "buy" rating in a research report on Saturday, January 31st. Weiss Ratings downgraded Avnet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, March 19th. Zacks Research upgraded Avnet from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 14th. Truist Financial raised Avnet from a "hold" rating to a "buy" rating and increased their price target for the company from $65.00 to $80.00 in a research note on Monday, April 13th. Finally, Wells Fargo & Company increased their price target on Avnet from $43.00 to $48.00 and gave the company an "underweight" rating in a research note on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Avnet presently has a consensus rating of "Hold" and a consensus price target of $59.33.

Avnet News Roundup

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Q3 earnings and revenue beat consensus: Avnet reported $1.48 EPS vs. $1.33 expected and revenue of $7.12B vs. $6.39B expected; revenue grew ~34% year‑over‑year — this is the primary catalyst for the stock rally. Avnet NASDAQ: AVT Surprises With Strong Q1 CY2026
• Positive Sentiment: Guidance raised: Avnet issued Q4 FY2026 EPS guidance of $1.70–$1.80 (consensus ~$1.40) and revenue guidance of $7.3B–$7.6B (vs. consensus ~$6.4B), signaling management sees continued demand and margin/earnings leverage. Avnet Q3 press release / guidance
• Positive Sentiment: Analyst support: At least one outlet raised Avnet’s price target (reported +11.39% to $67.32), reflecting improved earnings visibility and prompting further buying interest. Avnet (AVT) price target increased
• Neutral Sentiment: Technical/market context: Volume picked up materially above average and the stock is trading near its 52‑week high; market cap ~ $6.6B and P/E ~32.9 — investors should weigh momentum vs. valuation.
• Neutral Sentiment: Analyst consensus and estimates: Street now models ~4.62 EPS for the fiscal year and Avnet’s PEG is ~0.58, implying continued earnings growth is priced into shares.
• Negative Sentiment: Thin margins: Despite strong revenue growth, net margin is low (~0.9%) and ROE is modest (~6.1%), which could constrain long‑term profitability if gross margin or operating leverage do not improve. Avnet Q3 key metrics analysis

About Avnet

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.

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