Spotting Winners: Avnet (NASDAQ:AVT) And IT Distribution & Solutions Stocks In Q2

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how it distribution & solutions stocks fared in Q2, starting with Avnet (NASDAQ:AVT).

IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.

The 8 it distribution & solutions stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was 0.5% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Avnet (NASDAQ:AVT)

With a century-long history of adapting to technological evolution, Avnet (NASDAQ:AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.

Avnet reported revenues of $5.62 billion, flat year on year. This print exceeded analysts’ expectations by 4.5%. Overall, it was a very strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

“In fiscal year 2025, we executed well given the overall market environment, and I want to express my gratitude to our team for their dedication in supporting our supplier and customer partners. Thanks to their efforts, we managed costs effectively and made progress on working capital optimization to enhance operating cash flow,” said Avnet Chief Executive Officer Phil Gallagher.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $51.74.

Is now the time to buy Avnet? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: ePlus (NASDAQ:PLUS)

Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.

ePlus reported revenues of $637.3 million, up 19% year on year, outperforming analysts’ expectations by 23.3%. The business had an incredible quarter with a solid beat of analysts’ revenue and EPS estimates.

ePlus scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 16.5% since reporting. It currently trades at $73.94.

Is now the time to buy ePlus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Insight Enterprises (NASDAQ:NSIT)

With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ:NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.

Insight Enterprises reported revenues of $2.09 billion, down 3.2% year on year, falling short of analysts’ expectations by 2.4%. It was a slower quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Insight Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.6% since the results and currently trades at $110.55.

Read our full analysis of Insight Enterprises’s results here.

Ingram Micro (NYSE:INGM)

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE:INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Ingram Micro reported revenues of $12.79 billion, up 10.9% year on year. This result topped analysts’ expectations by 6.4%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and revenue guidance for next quarter slightly missing analysts’ expectations.

The stock is up 18.8% since reporting and currently trades at $22.39.

Read our full, actionable report on Ingram Micro here, it’s free for active Edge members.

TD SYNNEX (NYSE:SNX)

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

TD SYNNEX reported revenues of $15.65 billion, up 6.6% year on year. This number beat analysts’ expectations by 3.5%. Overall, it was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter estimates.

The stock is up 7.1% since reporting and currently trades at $160.95.

Read our full, actionable report on TD SYNNEX here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.