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Avnet
(NASDAQ:AVT)
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Rating:57Neutral
Price Target:
$90.00
▲(0.65% Upside)
Action:Reiterated
Date:08/22/26
AVT’s score is driven primarily by financial quality concerns—especially the TTM swing to negative operating and free cash flow alongside thin margins—despite a revenue rebound and reasonable leverage. The latest earnings call is a meaningful positive, with optimistic guidance and signs of operating leverage, but near-term working-capital and inventory/cash-use risks remain central. Technically, the stock is below key short-term moving averages with subdued momentum, while valuation is roughly mid-range with a modest dividend yield.
Positive Factors
Broad Revenue Recovery
The rebound across regions and operating groups indicates improving electronics demand and stronger customer activity. Sustained volume recovery can improve Avnet’s scale economics, supplier relevance and earnings power over the next several quarters.
Negative Factors
Weak Recent Cash Conversion
Negative cash generation reduces the quality of reported earnings and can constrain flexibility if it persists. For a distributor, prolonged cash outflows may require additional borrowing and increase exposure to inventory and receivables cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad Revenue Recovery
The rebound across regions and operating groups indicates improving electronics demand and stronger customer activity. Sustained volume recovery can improve Avnet’s scale economics, supplier relevance and earnings power over the next several quarters.
Read all positive factors
Avnet (AVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.19B
Dividend Yield1.55%
Average Volume (3M)1.17M
Price to Earnings (P/E)22.2
Beta (1Y)1.15
Revenue Growth24.47%
EPS Growth47.08%
CountryUS
Employees15,040
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)4.07
Shares Outstanding82,072,980
10 Day Avg. Volume954,601
30 Day Avg. Volume1,174,951
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.41
Price to Sales (P/S)0.26
P/FCF Ratio-20.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$95.00Price Target Upside6.24% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)10.91
Revenue Forecast (FY)$35.95B
Avnet Business Overview & Revenue Model
Company Description
Avnet, Inc., established in Phoenix, Arizona, in 1921, operates as a global technology distributor and solutions provider. The company specializes in marketing, selling, and distributing electronic components, with its business activities structur...
How the Company Makes Money
Avnet makes money primarily by distributing electronic components and embedded solutions and earning a margin between its purchase cost from suppliers and the resale price to customers. Key revenue streams include: (1) Component distribution: sell...
Avnet Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call communicated a strong and broad‑based operational and financial recovery: record sales, record EPS, sustained margin expansion, improved working capital metrics and clear momentum across regions and segments. Management acknowledged pockets of risk — notably memory‑driven pricing, higher inventory dollars and a tightening supply environment with extended lead times — but characterized these as manageable and partially indicative of genuine demand recovery rather than excess stocking. Guidance for the next quarter is optimistic and capital allocation prioritizes funding growth while progressing toward leverage targets. Overall, the positive operational and financial progress materially outweighs the highlighted challenges.Positive Updates
Record Quarterly Sales and Strong Year‑Over‑Year Growth
Fourth quarter sales of $8.3 billion, a record for the company, up 48% year‑over‑year and up 17% sequentially.
Negative Updates
Gross Profit Margin Slightly Weakened Year‑Over‑Year
Overall gross profit margin was 10.4%, up 5 basis points sequentially but down 14 basis points year‑over‑year. Electronic Components gross margin was flat sequentially and down ~25 basis points YoY.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly Sales and Strong Year‑Over‑Year Growth
Fourth quarter sales of $8.3 billion, a record for the company, up 48% year‑over‑year and up 17% sequentially.
Read all positive updates
Company Guidance
Avnet guided first‑quarter fiscal 2027 sales of $9.0–$9.3 billion and adjusted diluted EPS of $2.80–$2.90 (midpoint implying ~10% sequential sales growth), assuming current market conditions, similar interest expense to Q4, an effective tax rate of 21–25% and ~85 million diluted shares; management said near‑term EPS should grow roughly 3x sales and operating income about 2x sales, expects SG&A as a percent of gross profit to fall below 60% before the end of FY2027, is targeting ~3x leverage by year‑end (gross leverage was 3.2x this quarter, down from 3.6x, with ~$1.2B of committed borrowing capacity), and will prioritize funding accelerating growth and the dividend while using cash in Q1 to support accounts receivable — all while monitoring working capital (Q4 inventory days 71 with EC <65 and Farnell ~200, working capital days 69, inventory up 11% or ~$600M, and return on working capital 19% vs. a 16% target).Avnet Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.63B | 22.20B | 23.76B | 26.54B | 24.31B |
| Gross Profit | 2.88B | 2.38B | 2.77B | 3.18B | 2.97B |
| EBITDA | 855.32M | 626.24M | 1.06B | 1.38B | 1.09B |
| Net Income | 334.39M | 240.22M | 498.70M | 770.83M | 692.38M |
Balance Sheet | |||||
| Total Assets | 15.43B | 12.12B | 12.21B | 12.48B | 10.39B |
| Cash, Cash Equivalents and Short-Term Investments | 155.40M | 192.43M | 310.94M | 288.23M | 153.69M |
| Total Debt | 3.48B | 2.88B | 3.18B | 3.30B | 1.87B |
| Total Liabilities | 10.40B | 7.11B | 7.28B | 7.73B | 6.20B |
| Stockholders Equity | 5.02B | 5.01B | 4.93B | 4.75B | 4.19B |
Cash Flow | |||||
| Free Cash Flow | -354.50M | 577.03M | 463.51M | -908.38M | -268.21M |
| Operating Cash Flow | -280.93M | 724.50M | 689.98M | -713.70M | -219.31M |
| Investing Cash Flow | -71.47M | -137.13M | -225.48M | -211.55M | 51.30M |
| Financing Cash Flow | 315.89M | -693.53M | -433.80M | 1.05B | 156.06M |
Avnet Technical Analysis
Positive
89.42
Price Trends
89.33
Positive
85.03
Positive
69.92
Positive
Market Momentum
-0.14
Positive
49.29
Neutral
18.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVT, the sentiment is Positive. The current price of 89.42 is below the 20-day moving average (MA) of 92.50, above the 50-day MA of 89.33, and above the 200-day MA of 69.92, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 18.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVT.
Avnet Risk Analysis
Avnet disclosed 20 risk factors in its most recent earnings report. Avnet reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
10The impact of these trade disruptions Q2, 2026
Avnet Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $508.50M | 24.60 | 17.50% | 0.67% | 23.05% | -7.49% | |
69 Neutral | $10.31B | 13.12 | 12.14% | ― | 26.05% | 76.95% | |
69 Neutral | $4.42B | 22.16 | 13.08% | ― | 2.68% | 46.40% | |
63 Neutral | $2.88M | 2.44 | 7.76% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.13B | 15.22 | 8.66% | ― | 6.09% | 21.23% | |
57 Neutral | $7.19B | 22.18 | 6.77% | 1.57% | 24.47% | 47.08% |
* Technology Sector Average
AVT
Avnet
90.29
36.72
68.56%
ARW
Arrow Electronics
207.10
80.28
63.30%
NSIT
Insight Enterprises
151.83
22.18
17.11%
SCSC
ScanSource
56.17
12.00
27.17%
CLMB
Climb Global Solutions
27.67
-3.35
-10.80%
IZM
ICZOOM Group, Inc. Class A
0.24
-2.26
-90.28%
Avnet Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Avnet Prices $550 Million Senior Notes Offering
Positive
Aug 21, 2026
On August 19, 2026, Avnet, Inc. priced a public offering of $550 million in 5.650% Notes due 2031, with the notes accruing interest from issuance and ranking equally with the company’s other existing and future unsecured obligations. The off...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.