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Revenue
Electronic Components drove the majority of the revenue, contributing $5.5 billion, . Combined, these segments accounted for nearly 98% of total revenue, reflecting robust demand in Asia and the Americas.
Earnings/Net Income
Avnet’s GAAP EPS declined 7.5% to $0.62, with net income falling 12.2% to $51.74 million. However, adjusted EPS of $0.84 surpassed consensus estimates, highlighting operational resilience despite margin pressures.
Post-Earnings Price Action Review
. The mixed performance reflects investor skepticism amid market uncertainties, despite the earnings beat. Analysts note the Zacks Rank #4 (Sell) rating, underscoring expectations of underperformance relative to the broader market.
CEO Commentary
CEO Phil Gallagher emphasized “double-digit growth in Farnell and Asia” as key drivers, reiterating confidence in Avnet’s durable business model and long-term value creation potential.
Guidance
The company expects Q2 2026 sales of $5.85B–$6.15B (midpoint $6.00B) and adjusted diluted EPS of $0.90–$1.00 (midpoint $0.95). The outlook assumes sequential growth in Americas and Asia, flat Europe, and a 21%–25% effective tax rate.
Additional News
, representing 3.2% of outstanding shares, . The company also priced a $550 million convertible debt offering to fund strategic initiatives. Management highlighted progress in Asia and Americas, .
Polished Article
Avnet’s Q1 2026 results underscored its resilience in a volatile market, with revenue growth outpacing expectations and adjusted earnings reflecting operational efficiency. The company’s strategic focus on Asia and Farnell, coupled with shareholder returns, positions it to navigate near-term challenges. Investors remain cautious, however, as broader market dynamics and Zacks’ bearish rating temper optimism.
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