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Avnet First Quarter Fiscal Year 2026 Financial Results October 29, 2025
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Safe Harbor Statement 2 This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations, and business of the Company. You can find many of these statements by looking for words like “believes,” “projected,” “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates,” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: geopolitical events and military conflicts; pandemics and other health-related crises; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors; relationships with key suppliers and allocations of products by suppliers; accounts receivable defaults; risks relating to the Company’s international sales and operations, including risks relating to repatriating cash, foreign currency fluctuations, inflation, duties and taxes, tariffs, sanctions and trade restrictions, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures, and investments; adverse effects on the Company’s supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers, and suppliers, including as a result of issues caused by military conflicts, terrorist attacks, natural and weather-related disasters, pandemics and health related crises, warehouse modernization, and relocation efforts; risks related to cyber security attacks, other privacy and security incidents, and information systems failures, including related to current or future implementations, integrations, and upgrades; general economic and business conditions (domestic, foreign, and global) affecting the Company’s operations and financial performance and, indirectly, the Company’s credit ratings, debt covenant compliance, liquidity, and access to financing; constraints on employee retention and hiring; and legislative or regulatory changes. Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made. Non-GAAP Financial Measures Management uses measures which are not recognized in accordance with U.S. generally accepted accounting principles (“GAAP”) to evaluate its business and may refer to such measures in this presentation. Please refer to the appendix section of this presentation for non-GAAP definitions and reconciliation of the non- GAAP financial measures to the most directly comparable GAAP measures.
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Q1 FY26 Highlights Regional demand • Growth in Asia and the Americas, EMEA flat Y/Y End market demand • Communication and transportation increased Y/Y Lead times • Lead times generally stable Book-to-bill • Modest improvement sequentially; all regions above parity 3 (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation. $5.9B Revenue +5% Y/Y 2.4% 2.6% Operating Margin Adjusted Operating Margin (1) $0.61 $0.84 Diluted EPS Adjusted Diluted EPS (1)
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Asia 47% 48% 47% 48% 49% $5.60B $5.66B $5.32B $5.62B $5.90B Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Revenue 4 Y/Y growth Revenue(1) ($M) As reported Constant currency REGIONS Americas $1,370 3% 3% EMEA $1,666 - (6%) Asia $2,863 10% 10% SEGMENTS Electronic Components $5,500 5% 3% Farnell $399 15% 12% AVNET $5,899 5% 4% (1) May not foot due to rounding.
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Q1 Income Statement 5 $5.9B Sales 10.4% Gross margin – driven by customer and product mix $464M SG&A expenses – up 6% Y/Y and up 3% Q/Q 75.6% SG&A expenses as a percentage of gross profit SG&A Expenses as % of Gross Profit 72.2% 75.6% Q1 FY25 Q1 FY26
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Q1 Adjusted Operating Income (1) 6 $169M $159M $153M $143M $151M 3.0% 2.8% 2.9% 2.5% 2.6% Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Adj Op Income(1) ($M) Y/Y growth Adj Op Margin(1) Y/Y growth SEGMENTS Electronic Components $159 -19% 2.9% -86 bps Farnell $ 17 820% 4.3% 375 bps Corporate Expenses ($25) - - - AVNET $151 -11% 2.6% -46 bps (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation.
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Q1 Other Expenses & Adjusted Diluted EPS (1) 7 $60M Interest expense down $5M Y/Y and up $1M Q/Q 23.0% Adjusted effective tax rate (2) $0.84 Adjusted diluted EPS (1) – down 9% Y/Y and up 4% Q/Q Adjusted Diluted EPS (1) $0.92 $0.84 Q1 FY25 Q1 FY26 (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation. (2) Non-GAAP measure. GAAP effective tax rate on income before taxes was 32.6% in the first quarter of fiscal 2026. See Appendices for Non-GAAP Definitions.
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Q1 Balance Sheet & Liquidity 8 $5.4B Inventory – $185M increase Q/Q as reported 95 WC days – down 4 days Q/Q 4.0x Gross debt leverage $1.7B Available committed lines of credit $138M Share repurchases $0.35 Dividend – returned $28M to shareholders Diluted Shares Outstanding 89M 84M Q1 FY25 Q1 FY26
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Outlook for Q2 FY26 (ending December 27, 2025) 9 Metric Guidance Range Midpoint Sales $5.85B – $6.15B $6.00B Adjusted Diluted EPS (1) $0.90 – $1.00 $0.95 Factors impacting our Q2 FY26 outlook • Based on current market conditions • Implies sequential sales growth of 2% at the midpoint and assumes sales growth in the Americas and Asia, and flat sales in EMEA • Assumes similar interest expense to Q1 FY26, an adjusted effective tax rate of between 21% and 25%, and approximately 83 million average diluted shares outstanding (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation.
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Non-GAAP Definitions 10 In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted other income (expense), (iii) adjusted income before income taxes, (iv) adjusted income tax expense (benefit), and (v) adjusted diluted earnings per share. See additional discussion, definitions and reconciliations of Non-GAAP measures included as Exhibit 99.1 to the Current Report on Form 8-K filed with the Securities Exchange Commission on October 29, 2025, which can be found on the Company’s website at www.ir.avnet.com. There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company’s results of operations, results excluding this impact are referred to as “constant currency.” Management believes sales in constant currency is a useful measure for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period. Management believes that operating income adjusted for restructuring, integration and other expenses, and amortization of acquired intangible assets, is a useful measure to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, and amortization of acquired intangible assets and other. Management also believes income tax expense (benefit), net income and diluted earnings per share adjusted for the impact of the items described above, gain on legal settlements and other, foreign currency gains and losses and certain items impacting income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the effective tax rate based upon the expected long-term adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and diluted earnings per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public. Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income divided by sales and the adjusted effective income tax rate, which is defined as adjusted income tax expense divided by adjusted income before income taxes. Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.
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Appendix: Reconciliation of GAAP to Non-GAAP Measures 11 GAAP operating income $ 142,032 Restructuring, integration, and other expenses 8,291 Amortization of intangible assets 364 Adjusted operating income 150,687 GAAP other expense, net $ (5,466) Foreign currency loss 6,483 Adjusted other income, net 1,017 GAAP income before income taxes $ 76,804 Restructuring, integration, and other expenses 8,291 Amortization of intangible assets 364 Foreign currency loss 6,483 Adjusted income before income taxes 91,942 GAAP income tax expense $ 25,059 Restructuring, integration, and other expenses 2,452 Amortization of intangible assets 85 Foreign currency loss 1,535 Income tax expense items, net (7,984) Adjusted income tax expense 21,147 GAAP net income $ 51,745 5,839 Amortization of intangible assets (net of tax) 279 Foreign currency loss (net of tax) 4,948 Income tax expense items, net 7,984 Adjusted net income 70,795 GAAP diluted earnings per share $ 0.61 0.07 Amortization of intangible assets (net of tax) — Foreign currency loss (net of tax) 0.06 Income tax expense items, net 0.10 Adjusted diluted EPS 0.84 Restructuring, integration, and other expenses (net of tax) Restructuring, integration, and other expenses (net of tax) Quarter Ended September 27, 2025 ($ in thousands, except per share amounts)
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Appendix: Reconciliation of GAAP to Non-GAAP Measures 12 GAAP operating income $ 514,254 $ 73,452 $ 143,251 $ 155,327 $ 142,225 Restructuring, integration, and other expenses 108,316 69,061 9,110 3,794 26,351 Amortization of intangible assets 1,463 364 364 366 368 Adjusted operating income 624,033 142,877 152,725 159,487 168,944 GAAP other expense, net $ (17,283) $ (7,604) $ (3,992) $ (2,645) $ (3,043) Foreign currency loss 29,631 12,811 6,933 5,104 4,783 Adjusted other income, net 12,348 5,207 2,941 2,459 1,740 GAAP income before income taxes $ 250,569 $ 7,404 $ 78,144 $ 90,283 $ 74,738 Restructuring, integration, and other expenses 108,316 69,061 9,110 3,794 26,351 Amortization of intangible assets 1,463 364 364 366 368 Foreign currency loss 29,631 12,811 6,933 5,104 4,783 Adjusted income before income taxes 389,979 89,640 94,551 99,547 106,240 GAAP income tax expense (benefit) $ 10,352 $ 1,315 $ (9,775) $ 3,030 $ 15,782 Restructuring, integration, and other expenses 20,671 10,397 2,475 1,142 6,657 Amortization of intangible assets 345 86 86 86 87 Foreign currency loss 8,800 3,796 1,762 1,630 1,612 Income tax expense items, net 49,527 5,023 27,199 17,007 298 Adjusted income tax expense 89,695 20,617 21,747 22,895 24,436 GAAP net income $ 240,217 $ 6,089 $ 87,919 $ 87,253 $ 58,956 87,645 58,664 6,635 2,652 19,694 Amortization of intangible assets (net of tax) 1,117 278 278 280 281 Foreign currency loss (net of tax) 20,831 9,015 5,171 3,474 3,171 Income tax expense items, net (49,527) (5,023) (27,199) (17,007) (298) Adjusted net income 300,283 69,023 72,804 76,652 81,804 GAAP diluted earnings per share $ 2.75 $ 0.07 $ 1.01 $ 0.99 $ 0.66 1.01 0.69 0.08 0.03 0.22 Amortization of intangible assets (net of tax) 0.01 0.00 0.00 0.00 0.00 Foreign currency loss (net of tax) 0.24 0.11 0.06 0.04 0.04 Income tax expense items, net (0.57) (0.06) (0.31) (0.19) (0.00) Adjusted diluted EPS 3.44 0.81 0.84 0.87 0.92 *May not foot/cross due to rounding. Restructuring, integration, and other expenses (net of tax) March 29, 20252025* Fiscal Year ($ in thousands, except per share amounts) Restructuring, integration, and other expenses (net of tax) June 28, 2025 Quarters Ended 2024 2024 December 28, September 28,
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Appendix: Reconciliation of GAAP to Non-GAAP Measures 13 Adjusted diluted earnings per share guidance $ 0.90 $ 1.00 Restructuring, integration, and other expenses (net of tax) (0.16) (0.08) GAAP diluted earnings per share guidance $ 0.74 0.92 Low End of High End of Guidance Range Guidance Range