Avnet Stock Rallies 14% as Q2 Earnings and Revenues Beat Estimates

Avnet, Inc. AVT shares jumped 13.8% on Wednesday after the company reported better-than-expected second-quarter fiscal 2026 results. The company’s second-quarter adjusted earnings of $1.05 per share surpassed the Zacks Consensus Estimate by 10.53%. Moreover, the bottom line surged 20.7% on a year-over-year basis.

Net sales increased 11.6% year over year to $6.32 billion and outpaced the consensus mark by 5.28%. The year-over-year growth was primarily driven by strong sales across the company’s operating segments.

Avnet’s Q2 Details

The Electronic Components segment’s revenues were up 10.8% year over year and 7.1% sequentially to $5.89 billion. Our estimate for the Electronic Components segment’s revenues was pegged at $5.6 billion.

Farnell sales soared 23.6% year over year and 7.1% sequentially to $427.1 million. Our estimate for the Farnell segment’s revenues was pegged at $400.8 million.

Avnet, Inc. Price, Consensus and EPS Surprise

Avnet, Inc. price-consensus-eps-surprise-chart | Avnet, Inc. Quote

From a regional perspective, on a year-over-year basis, sales increased 16.9% in Asia to $3.17 billion and 4.9% in the Americas to $1.44 billion. Sales in the EMEA jumped 8.3% to $1.71 billion.

The adjusted operating income came in at $171.7 million, which increased 7.7% year over year. The operating income for the Electronic Components segment rose 3% to $187.1 million, while that for Farnell’s jumped fivefold to $20 million from $3.5 million in the year-ago quarter.

Avnet’s adjusted operating margin shrank 10 basis points (bps) to 2.7% from the year-ago quarter. Electronic Components’ operating margin contracted 20 bps to 3.2%, while Farnell’s improved 370 bps to 4.7%.

Balance Sheet & Cash Flow of Avnet

As of Dec. 27, 2025, AVT had cash and cash equivalents of $286.5 million compared with $175.5 million reported as of Sept. 27, 2025.

The long-term debt was $2.47 billion as of Dec. 27, 2025, lower than $2.79 billion at the end of the previous quarter.

Avnet generated operating cash flow of $208 million in the second quarter and $63.7 million in the first half of fiscal 2026. In the second quarter, the company did not repurchase its shares but paid $28 million in dividends to shareholders. In the first half of fiscal 2026, it repurchased shares worth $138.3 million and paid $56.9 million in dividends.

Avnet Initiates Q3 Guidance

For the third quarter of fiscal 2026, Avnet anticipates revenues in the range of $6.2-$6.5 billion (midpoint of $6.35 billion). The Zacks Consensus Estimate for revenues is pegged at $5.8 billion, suggesting a year-over-year increase of 9.1%.

AVT expects non-GAAP earnings between $1.20 and $1.30 per share. The consensus mark for the bottom line is pinned at $1.22, suggesting a year-over-year increase of 45.2%.

Avnet’s Zacks Rank & Stocks to Consider

Currently, AVT carries a Zacks Rank #3 (Hold).

Amphenol APH, Micron Technology MU and Analog Devices ADI are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Amphenol and Micron Technology each sport a Zacks Rank #1 (Strong Buy) at present, while Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised upward by 10 cents over the past seven days to $4.26 per share, calling for an increase of 28.7% year over year. Amphenol shares have surged 103.7% in the trailing 12 months.

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved southward by 7 cents in the past seven days to $33.01 per share, implying 298.2% year-over-year growth. Micron Technology shares have soared 370.6% over the past year.

The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings is pegged at $10.01 per share, revised upward by 22 cents over the past 30 days and suggests a year-over-year increase of 28.5%. Analog Devices’ shares have rallied 49.6% over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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