Avnet Inc (NASDAQ:AVT) Tops Q1 FY2026 Estimates Despite Pre-Market Share Decline

Avnet Inc (NASDAQ:AVT) reported financial results for its first quarter of fiscal year 2026, concluding September 27, 2025. The global technology distributor posted sales and adjusted earnings that surpassed analyst expectations, though the initial market reaction in pre-market trading was negative.

Earnings and Revenue Versus Estimates

The company's top-line performance for the quarter was a key highlight, exceeding the consensus forecast.

• Reported Revenue: $5.90 billion
• Estimated Revenue: $5.79 billion

On the bottom line, Avnet also delivered a beat on non-GAAP earnings per share, which is the figure most closely watched by investors and analysts.

• Reported Adjusted EPS: $0.84
• Estimated Adjusted EPS: $0.82

Despite these beats on both major metrics, shares of Avnet were trading lower by approximately 3.8% in pre-market activity following the report. This suggests that investor expectations may have been even higher than the published estimates, or that other elements within the report were viewed less favorably.

Quarterly Performance and Outlook

Avnet's sales of $5.9 billion represented a 5.3% increase compared to the same quarter last year. The company's performance was notably driven by its Farnell segment and its operations in Asia.

• Farnell sales grew 14.9% year-over-year to $398.9 million, marking its second consecutive quarter of growth.
• Asia sales increased 9.9% year-over-year to $2.86 billion, representing the fifth consecutive quarter of growth in the region.

Looking ahead, Avnet provided guidance for the second quarter of fiscal 2026. The company expects sales in the range of $5.85 billion to $6.15 billion, with a midpoint of $6.00 billion. This outlook compares to analyst sales estimates of $5.92 billion for Q2, positioning the company's projection slightly above consensus. For adjusted diluted EPS, Avnet forecasts between $0.90 and $1.00, with a midpoint of $0.95, which aligns with the analyst estimate of $1.00 for the quarter.

Shareholder Returns and Segment Analysis

The company continued its commitment to returning capital to shareholders during the quarter. Avnet returned a total of $166 million, comprised of $138 million in share repurchases and $28 million in dividend payments. The share repurchases accounted for 3.2% of the shares outstanding.

A breakdown of segment performance reveals a mixed picture in terms of profitability. While the Electronic Components (EC) segment saw a year-over-year decline in its operating income margin, the Farnell segment demonstrated a significant improvement.

• EC Operating Income Margin: 2.9%, down from 3.8% in the prior year.
• Farnell Operating Income Margin: 4.3%, a substantial increase from 0.5% in the prior year.

Conclusion

Avnet Inc (NASDAQ:AVT) delivered a quarter of solid growth, exceeding analyst projections for both revenue and earnings. The strong performance in Asia and the Farnell segment underscores the company's diverse geographic and operational strengths. However, the market's initial negative reaction indicates that investors may be weighing the positive results against margin pressures in the core EC business or had anticipated an even stronger beat. The company's forward guidance for the next quarter appears robust, slightly exceeding sales expectations and meeting earnings estimates.

For a detailed look at Avnet's historical earnings performance and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.