Avnet shares hit all-time high as Phoenix distributor reports record $8.3B quarter

Shares of Avnet Inc. hit an all-time high Wednesday after the Phoenix-based global electronics component distributor reported record-breaking sales for the fourth fiscal quarter, driven by growth across all key business segments.

Avnet, Arizona’s largest publicly traded tech company, generated $8.3 billion in revenue during fiscal Q4 that ended June 27, a 48% increase over the prior-year quarter. The company’s quarterly revenue also exceeded Wall Street expectations as the Zacks Consensus Estimate predicted quarterly revenue of $7.45 billion.

“Our fourth quarter results underscore the strength of Avnet’s business model and the impact of our disciplined execution and long-term strategy. We delivered record sales while growing profitability at more than two and a half times the rate of sales growth, demonstrating the operating leverage in our business model,” Phil Gallagher, Avnet’s CEO, told the Business Journal in an exclusive interview. “Momentum continues to build across all regions, end markets and customer segments, giving us increasing confidence in our competitive position.”

Avnet’s electronic components segment — a significant part of its business — generated a record high $7.8 billion in sales, a 17% increase compared to the prior year. The company saw a 27.6% year-over-year increase in U.S. market sales with that segment generating $2 billion in the fourth fiscal quarter, according to a regulatory filing.

Asia market sales also reached a record high of $3.9 billion, marking the company’s eighth consecutive quarter of year-over-year growth in that region, Gallagher said.

Farnell — a segment of Avnet’s business that distributes electronics components and industrial products — generated $500 million in revenue.

“We are excited not only by the magnitude of the growth, but the breadth of the recovery across all regions and end markets,” Gallagher said. “This gives us confidence that the improvement in demand is not tied to a single market or trend, but reflects a broader demand recovery across the diverse applications that require electronic components.”

Shares of Avnet reached an all-time high of $98.67 in midmorning trading Wednesday on news of the company’s financial results, closing at $97.22, up 5%. The shares kept up the momentum after hours, adding another 4% to $101.40.

During the fiscal quarter, Avnet improved its inventory to 71 days, its lowest level in nearly four years.

In addition, Avnet reported $27.6 billion in sales for the full year in fiscal 2026, a 25% increase over the prior year.

“Looking back, fiscal 2026 was a year when many of the indicators we have been discussing for several quarters began to translate into stronger results,” Gallagher said. “Book to bills improved, backlog grew, customer demand visibility and ordering patterns strengthened, lead times extended in most product categories, and demand creation activity remained healthy.”

Company’s recent moves pay off

Throughout the year, Avnet strengthened supplier relationships, supported customers through a “more complex demand environment” and expanded its technical and digital capabilities, all of which positions the company to capture additional business in high-growth markets.

Investments that support AI are accelerating demand for power management, connectivity, automation and other enabling technologies across a wide range of applications, increasing overall semiconductor and component content across the markets Avnet serves, Gallagher said.

The company is expanding its engagements with a growing number of original equipment manufacturers in data center infrastructure, networking and transportation.

“We also see new demand from customers that are deploying AI at the edge. These customers are in our industrial sweet spot, which we are well positioned to serve,” Gallagher added.

Avnet’s market performance is closely tied to the global electronics distribution sector, semiconductor supply cycles, and industrial demand. As a major distributor of electronic components, its financial performance may react to component lead times, inventory movement by manufacturers, and sectors like artificial intelligence infrastructure, automotive electronics, and data centers.

When asked about Avnet’s financial results in relation to the overall health of the semiconductor and industrial markets, Gallagher said the company’s performance speaks volumes to the robust demand in those two segments.

“The application of technology is ramping, and everywhere you look there’s more applications, thus more semiconductor chips required, and it just kind of builds on itself,” Gallagher said. “…We’re going to manage it closely and stay operationally focused on execution and always remain humble as we compete through this market, but I think it speaks volumes with our diversification and that kind of growth. It’s good for semiconductors.”

Avnet expects to generate between $9 billion and $9.3 billion and earnings per share between $2.80 and $2.90 in Q1 of fiscal 2027.

Avnet’s favorable financial results come as the company continues to progress on buildout of its new global headquarters in Tempe.

Last year, Avnet purchased a 150,000-square-foot office building for its new global headquarters at 2155 S. Science Drive in ASU Research Park.

Avnet has occupied its current 180,000-square-foot headquarters in Phoenix since 1997, but the company’s lease is expiring this year, and “it was just time” to make the move to a new location, Gallagher told the Business Journal in September.

Avnet anticipates relocating to its new headquarters building in the next 30 to 45 days, Gallagher said.

Avnet is Arizona’s second-largest largest public company with 1,200 employees in the state and 15,000 globally, according to Business Journal research.