AVT Nasdaq Russell 1000 Earnings call
AVNET Inc. (AVT) · Q2 2026 results and valuation
Share price: $86.82 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 5 Aug 2026 and 29 Apr 2026
Net income up 34.2% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+34.2%
Net income vs Q1 2026
Outlook given
Net income 126.6M vs 94.3M
Revenue +16.5%
Against the same quarter last year (Q2 2025) it is +1978.8%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Key theme
Cash will be used in the first quarter to support sales growth, mostly by extending credit to customers.
Valuation
Is AVNET Inc. undervalued?
Reverse DCF. Average free cash flow of the last three fiscal years (the last year was negative) (2026-06-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$86.82
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+19.0% for 10 yrs
Fair value / share
$-5.85
Buy below
$-4.38
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
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Guidance
Overhead costs are expected to drop below 60% of gross profit before the end of fiscal 2027.
Source quote
“We expect that our SG&A expenses as a percentage of gross profit will continue to improve to below 60% before the end of fiscal 2027.”
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Guidance
AVT expects to use cash in the first quarter to support sales growth, primarily in the form of accounts receivable.
Source quote
“We anticipate using cash in the first quarter to continue supporting the sales growth, primarily in the form of accounts receivable.”
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Figure
Asia sales reached a record high of $3.9 billion, marking the eighth consecutive quarter of year-on-year sales growth in the region.
Source quote
“In Asia, sales reached another record high of $3.9 billion, marking our eighth consecutive quarter of year-on-year sales growth in the region.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“As a reminder, some of the information contained in the news release and on this conference call contain forward-looking statements that involve risks, uncertainties and assumptions that are difficult to...”
“And I think just in general, I think our operating income dollars or GP dollars dropped through about 2.6x.”
“Even in Europe, we saw it up double digit low double digit.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-27)
| Metric | Q2 2026period end 2026-06-27 | Q1 2026period end 2026-03-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 8.30B | 7.12B | +16.5% | 5.62B | +47.7% |
| Gross profit | 865.0M | 739.1M | +17.0% | 593.7M | +45.7% |
| Operating income | 231.0M | 205.5M | +12.4% | 73.5M | +214.5% |
| Net income | 126.6M | 94.3M | +34.2% | 6.1M | +1978.8% |
| EPS | 1.52 | 1.14 | +33.3% | 0.10 | +1420.0% |
| P/E today 26.5 | 21.5 | 23.1 | −1.6 | 19.1 | +2.4 |
Topics
Most discussed now
- As AVNET sees it right now, as you look at without guiding, but if it looks at the backlog and...
- New Guide assumes modest or minor price increases going into next quarter
- New I'd say AVNET is you talk to, but for most part or customers, it feels like maybe in the third or...
- Basis points this quarter was about 60 basis
- AVNET has seen good progress on operating margin because the West Europe and the Americas has recovered, but Asia is still...
Faded since Q1 2026
- Fading Sales growth in terms of the percent that coming
- Fading It helped the operating margin leverage like the other sales.
- Fading Before AVNET gives more color on the business, I wanted to take a moment to mention it is closely monitoring the...
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Auditor change · SEC 8-K