New York, January 28, 2026, 13:10 EST — Regular session.
Avnet, Inc. shares surged roughly 11% Wednesday following a quarterly earnings report that beat estimates and a third-quarter forecast that exceeded expectations. By 1:01 p.m. EST, the stock had climbed 11.3% to $58.65, reaching an intraday peak of $58.84 earlier.
This move is crucial as investors seek clear signals on demand and pricing within the global electronics supply chain, where distributors often risk carrying excess inventory if customers halt orders.
Avnet serves as a key indicator for this segment of tech hardware. Positioned between chipmakers and end customers, shifts in its bookings and inventory management tend to appear early—often ahead of any comments from the manufacturers themselves.
Avnet reported fiscal second-quarter sales of $6.319 billion in a filing with the U.S. SEC, with adjusted diluted EPS of $1.05 and GAAP diluted EPS at $0.75 for the quarter ending Dec. 27, 2025. The company projected fiscal third-quarter sales between $6.20 billion and $6.50 billion, and adjusted EPS ranging from $1.20 to $1.30. The midpoint suggests about 1% sequential sales growth, despite a seasonal slowdown in Asia tied to Lunar New Year.
Analysts were looking for earnings of $0.95 per share this quarter, according to RTTNews. Adjusted EPS, however, increased 20.7% from $0.87 a year ago. Operating income dropped 5.9% year-over-year to $146.2 million, even though sales rose 11.6%, RTTNews said. (RTTNews)
Chief Executive Phil Gallagher reported that the company delivered operating cash flow, cut days of inventory, and observed trends he called “encouraging.” He also noted Avnet’s third-quarter outlook anticipates “above-trend seasonal growth and improving margins.” (Business Wire)
Avnet’s rise boosted some stocks in the distribution sector. Arrow Electronics jumped roughly 4.7%, while TD SYNNEX gained around 1.1% by midday.
During the earnings call, Avnet leaders sounded optimistic about the year ahead. CFO Ken Jacobson noted that “2026 should provide several opportunities” for the company to assist customers and suppliers as market conditions evolve. (Investing)
“Adjusted” results exclude specific items that might distort reported profit, offering investors a clearer view of core performance. Another key figure is “days of inventory,” which estimates how long products remain unsold; a decline here can relieve cash flow and margin strains for distributors.
The business still operates on razor-thin margins, so even slight shifts in demand or pricing can quickly erode profits. If customers pull back on orders or discounting creeps back in, maintaining the outlook will be tough, despite any revenue gains.
Avnet’s upcoming challenge: hitting its fiscal third-quarter targets for the period ending March 28. Traders are zeroing in on how well the company manages inventory and advances its margins throughout the quarter.
