A global distributor of electronic components, Avnet supplies the semiconductors and interconnects that go into everything from cars to computers, serving both big manufacturers and hobbyist engineers through its Farnell e-commerce arm. It began in 1921 when Russian immigrant Charles Avnet opened a surplus-radio-parts shop on New York's "Radio Row," and it still bears his name. Fun fact: Avnet and RadioShack both trace their roots to 1921 and the early amateur-radio boom.
10-K · Fiscal year ended Jun 27, 2026 · SEC filing ↗
Avnet FY2026 revenue rose 24.5% to $27.6B as the electronic components cycle turned, but gross margin fell to 10.4% on Asia mix.
Avnet returned to growth after two years of decline. rose 24.5% to $27.6 billion and increased 40.9% to $724.8 million, driven by broad demand recovery across all regions and both segments. The company used $280.9 million in operating cash to fund the expansion, and continued to compress as lower-margin Asia sales grew to nearly half the business.
Key takeaways
rose 24.5% to $27.63 billion, the first annual increase since FY2023, with Electronic Components up 24.6% and Farnell up 23.2% on higher volumes and improved demand across all regions.
contracted 31 to 10.4% as a higher mix of lower-margin Asia sales offset a 168-basis-point improvement at Farnell; Asia represented 47.2% of sales entering the year and the trend continued.
rose 40.9% to $724.8 million, but $134.7 million in restructuring, integration, and other expenses — including severance for a German distribution center closure and start-up costs for a new EMEA facility — weighed on reported results.
Section summaries
Business
Avnet is a global electronic component distributor and solutions provider operating through EC (high-volume) and Farnell (low-volume/e-commerce) segments.
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EC serves high/medium-volume OEM, EMS, and ODM customers, with 83% of its fiscal 2026 from semiconductors and 15% from IP&E components.
Farnell serves low-volume engineers and entrepreneurs primarily via e-commerce, with semiconductors at 19%, IP&E at 36%, and single-board computers at 13% of its fiscal 2026 .
One supplier accounted for over 10% of consolidated sales in fiscal 2026, and the company relies on franchised distribution agreements that typically include return privileges and cancellation notice periods of 30–180 days.
swung to a $280.9 million use, a $1.01 billion reversal from the prior year, as $296 million in was invested to support sales growth, primarily in and .
The company redeemed $550 million of notes due April 2026; ended the year at $2.48 billion, down 3.7%, while total assets rose 27.3% to $15.4 billion on the build.
rose 45.8% to $4.01, and the company repurchased $303.5 million of stock while paying $113.3 million in dividends during the year.
What changed
The decline that defined FY2024 and FY2025 reversed: after falling 10.5% and 6.6% in those years, sales rose 24.5% in FY2026, with the first quarterly increase arriving in Q1 and accelerating through Q3's 33.9% rise.
The $110 million annual restructuring cost-savings target flagged in FY2024 was overtaken by new charges: $134.7 million in FY2026 restructuring, integration, and other expenses, largely for a German distribution center closure and a new EMEA facility start-up, versus $108.3 million in FY2025.
Farnell, which declined 9.5% in FY2025 and was flagged as a recovery watch item, returned to growth at 23.2% for the year, with swinging positive and improving 168 .
The $550 million notes redemption due April 2026, flagged in FY2025, was completed; fell to $2.48 billion from $2.57 billion, though total debt including short-term borrowings rose to $3.2 billion with $1.5 billion floating-rate.
, which had improved to a $724.5 million source in FY2025 as normalized, reversed to a $280.9 million use in FY2026 as the company invested in and to support the sales recovery.
What to watch
Q1 FY2027 against the guided ~10% sequential growth to see if the recovery pace holds as the company laps easier comparisons from early FY2026.
trajectory as Asia mix pressure persists; the region drove the recovery but carries structurally lower margins, and any further shift could compress the 10.4% annual rate further.
in FY2027 to see if the $280.9 million use reverses as the build normalizes with slowing sales growth.
The $731 million in floating-rate debt maturing in FY2027 and its refinancing cost, given the average floating rate of 4.6% and the interest-rate exposure on the remaining $1.5 billion floating balance.
Avnet competes with Arrow Electronics, Future Electronics, and others in EC, and with Mouser, Digi-Key, and RS Components in Farnell, differentiating through breadth of supplier line card and value-added services like design, supply-chain, and programming support.
The company employed approximately 15,040 people across 48 countries as of June 27, 2026, and its Board was 40% women and 50% racially/ethnically diverse.
Avnet's results are highly sensitive to semiconductor cycles, supplier concentration, trade policy shifts, and evolving cybersecurity threats.
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Semiconductor sales dominate at ~79% of FY2026 consolidated sales, making closely tied to industry cycles of supply/demand imbalance and customer order volatility.
One supplier accounted for over 10% of consolidated , and supplier contracts are generally terminable at will, creating significant relationship and margin risk.
International operations generated ~78% of sales, exposing Avnet to tariffs, trade restrictions, sanctions, and foreign-currency fluctuations that can raise costs and reduce margins.
Cybersecurity threats are growing more sophisticated with AI/ML, and while past breaches have not been material, future attacks could materially impact operations or data.
obsolescence and defaults are heightened financial risks given technological change, reliance on purchase orders, and potential economic downturns.
Newly emphasized risks include the impact of the OECD global minimum corporate tax (effective FY2026) and increased complexity from a recent U.S. Supreme Court decision invalidating certain tariffs.
The Company’s Corporate and EC Americas headquarters are in Phoenix, Arizona. The Company owns and leases approximately 2.1 million and 4.1 million square feet of space, respectively, of which approximately 24% is in the United States. The facilities consist of office, warehousi…
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The Company’s Corporate and EC Americas headquarters are in Phoenix, Arizona. The Company owns and leases approximately 2.1 million and 4.1 million square feet of space, respectively, of which approximately 24% is in the United States. The facilities consist of office, warehousing, integration and value-added operations. The Company believes that the facilities are well maintained and adequate for current and future operating needs. The following table summarizes the square footage of the Company’s facilities by region as of June 27, 2026 (in millions):
Approximate
Square
Footage
Americas 1.9
EMEA 3.2
Asia 1.1
Total 6.2
See Note 5, “Property, plant and equipment, net” and Note 11, “Leases” to the Company’s consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for additional information on the Company’s properties.
Pursuant to SEC regulations, including but not limited to Item 103 of Regulation S-K, the Company regularly assesses the status of and developments in pending environmental and other legal proceedings to determine whether any such proceedings should be identified specifically in…
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Pursuant to SEC regulations, including but not limited to Item 103 of Regulation S-K, the Company regularly assesses the status of and developments in pending environmental and other legal proceedings to determine whether any such proceedings should be identified specifically in this discussion of legal proceedings, and has concluded that no particular pending legal proceeding requires public disclosure. Based on the information known to date, management believes that the Company has appropriately accrued in its consolidated financial statements for its share of the estimable costs of environmental and other legal proceedings.
The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations, including import/export and environmental matters. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position or liquidity but could possibly be material to its results of operations in any single reporting period.
Avnet's FY2026 sales rose 24.5% to $27.6B driven by broad electronic component demand, while operating income grew 40.9% to $725M.
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Total sales increased 24.5% to $27.63 billion, with Electronic Components (EC) up 24.6% and Farnell up 23.2%, driven by higher volumes and improved demand across all regions.
margin declined 31 to 10.4%, as EC margin fell 44 due to a higher mix of lower-margin Asia sales, partially offset by a 168 bps improvement at Farnell.
rose 38.0% to $860.9 million, with margin expanding 31 to 3.1%, reflecting from higher sales.
Net cash used in operating activities was $280.9 million, a $1.01 billion swing from the prior year, primarily due to investments to support sales growth.
The company recorded $134.7 million in restructuring, integration, and other expenses, largely for severance related to a German distribution center closure and start-up costs for a new EMEA facility.
Management expects fiscal Q1 2027 sales to grow approximately 10% sequentially, with growth across all EC regions and Farnell.
Quantitative and Qualitative Disclosures About Market Risk
The company uses economic hedges to reduce interest-rate and foreign-currency volatility, with $1.5B in floating-rate debt and a $20M FX sensitivity.
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Total debt at June 27, 2026 was $3.2B, split between $1.8B fixed-rate (avg. 3.9%) and $1.5B floating-rate (avg. 4.6%).
Floating-rate debt of $1.46B exposes the company to interest-rate risk; $731M matures in fiscal 2027.
Fixed-rate debt exceeded by $244M at year-end, reflecting market rate changes.
Currency risk arises from subsidiaries buying/selling in non-functional currencies; the company uses natural offsets and forward contracts (mostly under 60 days).
A hypothetical 10% adverse FX move would change forward-contract by ~$20M, largely offset by the underlying exposures.
The company states it remains exposed to interest-rate and currency risks to the extent positions are not economically hedged.
Avnet's FY2026 audit reports unqualified opinions on financial statements and internal controls, with revenue recognition identified as a critical audit matter.
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PricewaterhouseCoopers LLP audited FY2026 and KPMG LLP audited FY2025-2024, both issuing unqualified opinions on Avnet's consolidated financial statements.
PwC's audit identified recognition as the sole due to the high degree of auditor effort required for the $27.6 billion in sales.
The audit procedures for recognition included testing controls, inspecting customer contracts, confirming receivable balances, and testing credit memos.
PwC also opined that Avnet maintained effective as of June 27, 2026, based on COSO criteria.
The section indexes the full set of consolidated financial statements and notes, as well as the financial statement schedule for valuation and qualifying accounts.