A month has gone by since the last earnings report for Avnet (AVT Quick QuoteAVT - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Avnet due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Avnet, Inc. before we dive into how investors and analysts have reacted as of late.

Avnet's Q1 Earnings and Revenues Beat Estimates

Avnet reported better-than-expected results for the first quarter of fiscal 2026. The company’s first-quarter earnings of 84 cents per share surpassed the Zacks Consensus Estimate by 3.7%. However, the bottom line declined 8.7% on a year-over-year basis.

Net sales increased 5.3% year over year to $5.9 billion and outpaced the consensus mark by 3.5%. The year-over-year growth was primarily driven by strong sales across the company’s operating segments.

Avnet’s Q1 2025 Details

The Electronic Components segment’s revenues were up 4.6% year over year and 5.1% sequentially to $5.5 billion. Our estimate for the Electronic Components segment’s revenues was pegged at $5.34 billion.
Farnell sales soared 14.9% year over year and 3.2% sequentially to $398.9 million. Our estimate for the Farnell segment’s revenues was pegged at $360.4 million.

From a regional perspective, on a year-over-year basis, sales increased 9.9% in Asia to $2.86 billion and 3% in the Americas to $1.37 billion. However, sales in the EMEA declined marginally by 0.1% to $1.67 billion.

The adjusted operating income came in at $150.7 million, which decreased 10.8% year over year. The adjusted operating income for the Electronic Components segment declined 19.5% to $159 million, while that for Farnell’s jumped ninefold to $17.1 million from $1.9 million in the year-ago quarter.

Avnet’s adjusted operating margin shrank 46 basis points (bps) to 2.6% from the year-ago quarter. Electronic Components’ adjusted operating margin contracted 86 bps to 2.9%, while Farnell’s improved 375 bps to 4.3%.

AVT’s Balance Sheet & Cash Flow

As of Sept. 27, 2025, AVT had cash and cash equivalents of $175.5 million compared with $192.4 million reported as of June 28, 2025.

The long-term debt was $2.79 billion as of Sept. 27, 2025, lower than $2.57 billion at the end of the previous quarter. Avnet used $144.6 million of cash for operational activities during the reported quarter.

In the fiscal first quarter, Avnet repurchased approximately $138.3 million worth of shares and paid $28.5 million in dividends.

Avnet Initiates Q2 Guidance

For the second quarter of fiscal 2026, Avnet anticipates revenues in the range of $5.85-$6.15 billion (midpoint of $6 billion).

AVT expects non-GAAP earnings between 90 cents and $1 per share.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -6.25% due to these changes.

VGM Scores

At this time, Avnet has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Avnet has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.