Avnet Inc.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 5 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Record quarterly sales of $10.7 billion: Sales were $10.7 billion, up 82% year over year and 29% sequentially. Excluding the extra week, sales growth was 71% year over year and 21% sequentially. Source
• Adjusted EPS growth exceeded sales growth: Diluted EPS was $3.28 against $0.61 a year earlier. Adjusted diluted EPS was $3.63, up 332% year over year, and the company said it grew 4 times greater than sales. Source
• Farnell margin reached 10.1%: Farnell sales were $583.3 million, up 46.2% year over year, with an operating margin of 10.1%, up 576 basis points. Source
• Adjusted operating margin reached 4.7%: Adjusted operating income margin was 4.7%, up 210 basis points year over year, and adjusted operating income was $498.1 million. Source
• Fundamental demand backdrop described as positive: Management said the backdrop remains positive, with continued growth across industrial, aerospace and defense, transportation, and AI and data center applications. Source
• Return on working capital reached 25%: Return on working capital was 25%, against 19% last quarter and 10% a year ago. Source
• Second quarter sales guided to $11.1B - $11.4B: Sales guidance is $11.1B to $11.4B, midpoint $11.25B. The midpoint implies sequential growth of about 5%, or 12% excluding the first quarter's extra week. Source
• Second quarter adjusted EPS guided $3.90 - $4.10: Adjusted diluted EPS guidance is $3.90 to $4.10, midpoint $4.00. GAAP diluted EPS guidance is $3.80 to $4.05. Source

“We began fiscal 2027 by delivering another record quarter, reflecting stronger demand and solid execution across all of our businesses,”

Avnet Chief Executive Officer Phil Gallagher

Guidance

What changed from last quarter

• New guidance: Second quarter sales guidance of $11.1B to $11.4B was issued. The prior release gave first quarter sales guidance of $9.00B to $9.30B. Source
• New guidance: Second quarter adjusted diluted EPS guidance of $3.90 to $4.10 was issued. The prior release gave first quarter adjusted diluted EPS guidance of $2.80 to $2.90. Source

Results and growth drivers

• Record quarterly sales of $10.7 billion: Sales were $10.7 billion, up 82% year over year and 29% sequentially. Excluding the extra week, sales growth was 71% year over year and 21% sequentially. Source
• Adjusted EPS growth exceeded sales growth: Diluted EPS was $3.28 against $0.61 a year earlier. Adjusted diluted EPS was $3.63, up 332% year over year, and the company said it grew 4 times greater than sales. Source
• Extra week in fiscal first quarter: The fiscal first quarter had 14 weeks, against 13 weeks in the first and fourth quarters of fiscal 2026. Sales growth is shown as reported and excluding the extra week. Source
• Operating margin expanded 202 basis points: Operating income margin was 4.4%, up 202 basis points year over year, on operating income of $474.7 million. Source

Segments and regions

• Electronic Components margin rose to 4.8%: EC sales were $10,134.7 million, up 84.3% year over year, with record operating income of $484 million at a 4.8% margin. Source
• Farnell margin reached 10.1%: Farnell sales were $583.3 million, up 46.2% year over year, with an operating margin of 10.1%, up 576 basis points. Source
• Sales grew in every region: Americas sales rose 108.9% to $2.86 billion, EMEA rose 64.3% to $2.74 billion, and Asia rose 78.8% to $5.12 billion, all year over year. Source

“The fundamental backdrop for our industry remains positive, with continued growth across our core verticals such as industrial, aerospace and defense, transportation and AI and data center applications.”

Avnet Chief Executive Officer Phil Gallagher

Costs and margins

• Expenses managed alongside sales growth: Management said it is diligently managing expenses and working capital while supporting significant and sustained demand. Source
• Adjusted operating margin reached 4.7%: Adjusted operating income margin was 4.7%, up 210 basis points year over year, and adjusted operating income was $498.1 million. Source
• Restructuring costs excluded from guidance: Restructuring, integration and other expenses were $22.9 million in the quarter. Second quarter guidance excludes such expenses. Source

Demand and supply

• Fundamental demand backdrop described as positive: Management said the backdrop remains positive, with continued growth across industrial, aerospace and defense, transportation, and AI and data center applications. Source
• CEO cites demand and execution: The CEO cited stronger demand and solid execution across all of the company's businesses as the basis for the quarter. Source
• Supply assumed similar to first quarter: Second quarter guidance assumes similar electronic component supply from Avnet's suppliers as in the first quarter. Source

Working capital, cash and returns

• Return on working capital reached 25%: Return on working capital was 25%, against 19% last quarter and 10% a year ago. Source
• Net working capital days fell five: Net working capital days declined five days to 64 days quarter over quarter. Source
• Inventory days held flat at 72: Inventory days were 72, relatively flat quarter over quarter. Source
• Dividends of $30 million paid: The company returned $30 million to shareholders in dividends in the quarter. Source

Second quarter guidance

• Second quarter sales guided to $11.1B - $11.4B: Sales guidance is $11.1B to $11.4B, midpoint $11.25B. The midpoint implies sequential growth of about 5%, or 12% excluding the first quarter's extra week. Source
• Second quarter adjusted EPS guided $3.90 - $4.10: Adjusted diluted EPS guidance is $3.90 to $4.10, midpoint $4.00. GAAP diluted EPS guidance is $3.80 to $4.05. Source
• Share count and tax rate assumed: Guidance assumes 87 million average diluted shares and an adjusted effective tax rate between 21% and 25%. Source
• Exchange rate assumptions set: Guidance assumes an average euro to U.S. dollar rate of $1.12 and a GBP to U.S. dollar rate of $1.33. Source

Strategy and leadership

• Strategy focus on profitable growth: Management said it remains focused on executing its strategy, driving profitable growth and creating long-term value for shareholders. Source
• Company describes its position: The company describes itself as a global technology distributor and solutions provider serving customers for more than a century. Source
• CEO Phil Gallagher quoted on results: Avnet Chief Executive Officer Phil Gallagher is the named speaker on the quarter's results in the release. Source

Coming up, as management said on 4 November 2026

• Second quarter ends January 2, 2027: The second quarter of fiscal 2027 ends January 2, 2027, the period covered by the guidance issued with these results. Source

Figures management reported

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q1 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.