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Avnet First Quarter Fiscal Year 2027 Financial Results November 4, 2026
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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 27, 2026 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 FY27 Highlights 3 (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation. $10.7B Revenue +82% Y/Y 4.4% 4.7% Operating Margin Adjusted Operating Margin (1) $3.28 $3.63 Diluted EPS Adjusted Diluted EPS (1) Regional demand Growth in Asia, the Americas and EMEA Y/Y End market demand All end markets increased Y/Y led by data center/compute, aerospace & defense, and networking Lead times Trending higher across most product categories Book-to-bill All regions well above parity Pricing Increased in the quarter, substantially all memory related
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Revenue 4 Y/Y growth Revenue(1) ($M) As reported Constant currency REGIONS Americas $2,862 109% 109% EMEA $2,737 64% 67% Asia $5,119 79% 80% OPERATING GROUPS Electronic Components $10,135 84% 85% Farnell $583 46% 47% AVNET $10,718 82% 83% (1) May not foot due to rounding. $5.90B $6.32B $7.12B $8.30B $10.72B Q1 FY25 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27
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Q1 Income Statement 5 $10.7B Sales 10.0% Gross margin $576M SG&A expenses 53.7% SG&A expenses as a percentage of gross profit SG&A Expenses as % of Gross Profit 75.6% 63.3% 53.7% Q1 FY26 Q4 FY26 Q1 FY27
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Q1 Adjusted Operating Income (1) 6 $151M $172M $221M $318M $498M 2.6% 2.7% 3.1% 3.8% 4.7% Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation. Adjusted operating income up 231% Y/Y and up 57% Q/Q Adjusted operating income grew approximately 3 times greater than sales Y/Y and approximately 2 times greater than sales Q/Q 4.7% adjusted operating income margin – +210 bps Y/Y and +82 bps Q/Q
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Q1 Operating Income by Operating Group 7 $159M $187M $235M $317M $484M 2.9% 3.2% 3.5% 4.1% 4.8% Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Electronic Components $17M $20M $24M $45M $59M 4.3% 4.7% 5.2% 9.0% 10.1% Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Farnell
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Q1 Other Expenses & Adjusted Diluted EPS (1) 8 $92M Interest expense up $32M Y/Y and $25M Q/Q 23.0% Adjusted effective tax rate (2) $3.63 Adjusted diluted EPS (1) – up 332% Y/Y and up 59% Q/Q Adjusted Diluted EPS (1) $0.84 $2.28 $3.63 Q1 FY26 Q4 FY26 Q1 FY27 (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 24.1% in the first quarter of fiscal 2027. See Appendices for Non-GAAP Definitions.
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Q1 Balance Sheet & Liquidity 9 $8.2B Inventory – $2.1B increase Q/Q as reported 25% Return on Working Capital(1) $1.2B Available committed lines of credit $0.37 Dividend – returned $30M to shareholders WC and Inventory Days 92 71 72 95 69 64 Q1 FY26 Q4 FY26 Q1 FY27 Inventory Days WC Days (1) Non-GAAP measure. See Appendices for Non-GAAP Definitions and GAAP to Non-GAAP reconciliation.
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Guidance for Q2 FY27 (ending January 2, 2027) 10 Metric Guidance Range Midpoint Sales $11.10B – $11.40B $11.25B Adjusted Diluted EPS (1) $3.90 – $4.10 $4.00 Factors impacting our Q2 FY27 guidance Guidance for the second quarter assumes similar market conditions and supply of electronic components from Avnet’s suppliers compared to Q1 FY27 Implies sequential sales growth of approximately 5% at the midpoint and 12% when adjusting for the impact of the extra week of sales in the first quarter Assumes similar interest expense to Q1 FY27, an adjusted effective tax rate between 21% and 25%, and approximately 87 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 11 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 November 4, 2026, 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. Additionally, Return on Working Capital (ROWC) is calculated by taking adjusted operating income and annualizing the amount, then dividing by the average working capital for the quarter. 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 12 GAAP operating income $ 474,736 Restructuring, integration, and other expenses 22,936 Amortization of intangible assets 392 Adjusted operating income 498,064 GAAP other expense, net $ (11,239) Foreign currency loss 10,377 Adjusted other expense, net (862) GAAP income before income taxes $ 371,643 Restructuring, integration, and other expenses 22,936 Amortization of intangible assets 392 Foreign currency loss 10,377 Adjusted income before income taxes 405,348 GAAP income tax expense $ 89,471 Restructuring, integration, and other expenses 6,238 Amortization of intangible assets 94 Foreign currency loss 2,889 Income tax expense items, net (5,462) Adjusted income tax expense 93,230 GAAP net income $ 282,172 Restructuring, integration, and other expenses (net of tax) 16,698 Amortization of intangible assets (net of tax) 298 Foreign currency loss (net of tax) 7,488 Income tax expense items, net 5,462 Adjusted net income 312,118 GAAP diluted earnings per share $ 3.28 Restructuring, integration, and other expenses (net of tax) 0.20 Amortization of intangible assets (net of tax) 0.00 Foreign currency loss (net of tax) 0.09 Income tax expense items, net 0.06 Adjusted diluted EPS 3.63 *May not foot/cross due to rounding. ($ in thousands, except per share amounts) Fiscal 2027 First Quarter October 3, 2026*
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Appendix: Reconciliation of GAAP to Non-GAAP Measures 13 GAAP operating income $ 724,782 $ 231,019 $ 205,535 $ 146,196 $ 142,032 Restructuring, integration, and other expenses 134,706 86,507 14,737 25,171 8,291 Amortization of intangible assets 1,457 364 364 364 364 Adjusted operating income 860,945 317,890 220,636 171,731 150,687 GAAP other income (expense), net $ (6,631) $ (4,405) $ (1,827) $ 5,067 $ (5,466) Foreign currency loss (gain) 10,714 3,726 3,444 (2,939) 6,483 Adjusted other income, net 4,083 (679) 1,617 2,128 1,017 GAAP income before income taxes $ 467,436 $ 160,158 $ 140,570 $ 89,905 $ 76,804 Restructuring, integration, and other expenses 134,706 86,507 14,737 25,171 8,291 Amortization of intangible assets 1,457 364 364 364 364 Foreign currency loss (gain) 10,714 3,726 3,444 (2,939) 6,483 Adjusted income before income taxes 614,313 250,755 159,115 112,501 91,942 GAAP income tax expense $ 133,047 $ 33,579 $ 46,238 $ 28,172 $ 25,059 Restructuring, integration, and other expenses 38,561 23,343 5,901 6,865 2,452 Amortization of intangible assets 344 87 86 86 85 Foreign currency loss (gain) 1,827 625 758 (1,091) 1,535 Income tax expense items, net (32,487) 40 (16,386) (8,157) (7,984) Adjusted income tax expense 141,292 57,674 36,597 25,875 21,147 GAAP net income $ 334,389 $ 126,579 $ 94,332 $ 61,733 $ 51,745 96,145 63,164 8,836 18,306 5,839 Amortization of intangible assets (net of tax) 1,112 277 278 278 279 Foreign currency loss (gain) (net of tax) 8,887 3,101 2,686 (1,848) 4,948 Income tax expense items, net 32,487 (40) 16,386 8,157 7,984 Adjusted net income 473,020 193,081 122,518 86,626 70,795 GAAP diluted earnings per share $ 4.01 $ 1.49 $ 1.14 $ 0.75 $ 0.61 1.15 0.75 0.11 0.22 0.07 Amortization of intangible assets (net of tax) 0.01 0.00 0.00 0.00 0.00 Foreign currency loss (gain) (net of tax) 0.11 0.04 0.03 (0.02) 0.06 Income tax expense items, net 0.39 — 0.20 0.10 0.10 Adjusted diluted EPS 5.67 2.28 1.48 1.05 0.84 *May not foot/cross due to rounding. Quarters Ended Fiscal Year June 27, March 28, December 27, September 27, ($ in thousands, except per share amounts) Restructuring, integration, and other expenses (net of tax) Restructuring, integration, and other expenses (net of tax) 2026* 2026 2026 2025 2025
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Appendix: Reconciliation of GAAP to Non-GAAP Measures 14 Calculation of ROWC ($ in 000s) Q1 F27 Q4 F26 Q1 F26 Adjusted operating income 498,064 317,890 150,687 Adjusted operating income, annualized (a)(1) 1,885,529 1,271,560 602,748 Average quarterly working capital: Accounts receivable 7,320,501 6,192,612 4,415,464 Inventory 7,122,242 5,765,907 5,328,179 Accounts payable (6,948,360) (5,340,109) (3,588,142) Average working capital (b) 7,494,383 6,618,410 6,155,501 ROWC = (a) / (b) 25.2% 19.2% 9.8% (1) The annualization of adjusted operating income for the first quarter of fiscal 2027 factored in the extra week in this quarter, or 14 weeks, and 53 weeks for the fiscal year.
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Appendix: Reconciliation of GAAP to Non-GAAP Measures 15 Adjusted diluted earnings per share guidance $ 3.90 $ 4.10 Restructuring, integration, and other expenses (net of tax) (0.10) (0.05) GAAP diluted earnings per share guidance $ 3.80 4.05 Low End of High End of Guidance Range Guidance Range