Avnet (NASDAQ:AVT) Releases Earnings Results, Beats Estimates By $0.77 EPS

Avnet (NASDAQ:AVT) issued its earnings results on Wednesday. The company reported $3.63 EPS for the quarter, topping analysts’ consensus estimates of $2.86 by $0.77, FiscalAI reports. The firm had revenue of $10.72 billion during the quarter, compared to the consensus estimate of $9.22 billion. Avnet had a net margin of 1.74% and a return on equity of 14.15%. The company’s revenue was up 81.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.84 earnings per share.

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

• Avnet delivered record first-quarter sales of $10.7 billion and adjusted EPS of $3.63, both above expectations. For Q2, it forecast sales of $11.1 billion–$11.4 billion and adjusted EPS of $3.90–$4.10.
• Management said demand is improving broadly across regions and end markets, with book-to-bill above parity and backlog growing; it views the recovery as broader than inventory replenishment alone. Data center, aerospace and defense, and networking were among the strongest areas.
• Operating leverage lifted adjusted operating margin to 4.7%, its highest level since fiscal 2023. Electronic Components reached 4.8% margin, with 5% expected in the second half of fiscal 2027, while Farnell returned to a double-digit margin at 10.1%.
• Growth required a substantial working-capital investment: Avnet used $842 million of operating cash and debt increased by about $950 million. The company expects to raise additional capital to fund growth and anticipates positive cash flow by fiscal year-end.
• Lead times are lengthening across more component categories, and pricing increases are beginning to extend beyond memory; management said about one-third of sales growth came from memory pricing. It said supply constraints have not materially limited growth or the Q2 outlook so far, but is monitoring availability and customer impacts.

Avnet Stock Down 10.6%

AVT opened at $76.63 on Friday. The business’s 50-day simple moving average is $94.48 and its 200-day simple moving average is $81.42. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.97 and a current ratio of 1.73. Avnet has a one year low of $44.25 and a one year high of $108.63. The stock has a market capitalization of $6.30 billion, a P/E ratio of 11.51, a price-to-earnings-growth ratio of 0.26 and a beta of 1.11.

Avnet Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th were issued a dividend of $0.37 per share. The ex-dividend date of this dividend was Wednesday, September 9th. This is a positive change from Avnet’s previous quarterly dividend of $0.35. This represents a $1.48 annualized dividend and a dividend yield of 1.9%. Avnet’s dividend payout ratio is 22.22%.

Insider Activity

In other news, CEO Philip Gallagher sold 51,900 shares of Avnet stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $98.46, for a total value of $5,110,074.00. Following the transaction, the chief executive officer directly owned 168,923 shares of the company’s stock, valued at $16,632,158.58. The trade was a 23.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Michael Ryan Mccoy sold 32,052 shares of Avnet stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $91.10, for a total transaction of $2,919,937.20. Following the completion of the transaction, the senior vice president directly owned 76,674 shares in the company, valued at $6,985,001.40. The trade was a 29.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.00% of the stock is currently owned by insiders.

Avnet News Roundup

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Avnet reported EPS of $3.63, beating the $2.86 consensus, and revenue of $10.72 billion versus expectations of $9.22 billion. Revenue rose 81.7% year over year, supported by broad-based demand and higher memory pricing. Avnet Q1 earnings beat estimates on record sales and strong demand
• Positive Sentiment: Management pointed to continued demand strength and margin gains, and issued upbeat fiscal Q2 revenue guidance, signaling momentum into the next quarter. Q1 earnings call highlights
• Positive Sentiment: Truist raised its price target to $125 from $110 and maintained a Buy rating. Wells Fargo also raised its target, to $85 from $80, but kept an Underweight rating. Truist analyst recommendations Wells Fargo price-target report
• Negative Sentiment: Despite the earnings beat, Avnet faces tightening supply and rising working-capital requirements as it meets strong demand. Those constraints could temper the benefit of rapid sales growth and may help explain the negative market reaction. Q3 CY2026 business deep dive

Wall Street Analyst Weigh In

A number of analysts have issued reports on AVT shares. Zacks Research downgraded Avnet from a “strong-buy” rating to a “hold” rating in a report on Monday, October 19th. Wells Fargo & Company increased their price objective on Avnet from $80.00 to $85.00 and gave the company an “underweight” rating in a report on Thursday. Weiss Ratings raised Avnet from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, October 9th. Truist Financial raised their target price on Avnet from $110.00 to $125.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Wall Street Zen upgraded Avnet from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 17th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $100.25.

Avnet Company Profile

Avnet, Inc is a global technology distributor that helps manufacturers and design engineers source electronic components and develop products. The company supplies semiconductors, embedded processors, memory, connectivity products, sensors, power-management components and other electronic parts used in industrial, automotive, communications, computing, aerospace and defense applications.

In addition to component distribution, Avnet provides engineering and design services, supply-chain management, product customization, logistics, and technical support.