Avnet reports a 12% increase in sales for the second quarter, reaching approximately $6.3 billion and exceeding guidance. Sales from Asia grew to over 50% of total sales, with electronic component sales up 11% year over year and Farnell sales up 24% year over year. Gross margins remained stable year over year.

The company anticipates further improvement in Farnell gross margins as demand for onboard components increases. Operating expenses rose due to higher sales volumes and stock-based compensation expenses. Adjusted diluted earnings per share of $1.05 exceeded guidance, with working capital decreasing by $42 million sequentially.

Avnet expects to reduce leverage to approximately three times over the next year. Sales guidance for 2026 is in the range of $6.2 billion to $6.5 billion, with diluted earnings per share projected at $1.20 to $1.30. The company’s third quarter guidance implies a sequential sales increase of approximately 1% at the midpoint, driven by growth in the Americas and EMEA regions.

The company’s leadership remains optimistic about the recovery of their business, with a focus on reducing leverage and generating long-term returns for shareholders. Avnet is committed to operating efficiently and investing in digital platforms to drive growth and margin expansion. The team is encouraged by the positive signs in the business and looks forward to continued progress in the upcoming quarters.

Read more at Yahoo Finance: Avnet (AVT) Q2 2026 Earnings Call Transcript