Avnet’s fourth quarter results drew a positive market response, as management emphasized broad-based double-digit sales growth driven by particularly strong demand in the Asia region and a notable rebound in the Americas and Europe. CEO Philip Gallagher credited the quarter’s momentum to record revenues in Asia and improved seasonal growth across geographies, with the Electronic Components business and Farnell both contributing. He highlighted that "demand increased across most of the verticals and geographies we serve," pointing to robust activity in compute and aerospace and defense end markets.
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Avnet (AVT) Q4 CY2025 Highlights:
- Revenue: $6.32 billion vs analyst estimates of $6.02 billion (11.6% year-on-year growth, 4.9% beat)
- Adjusted EPS: $1.05 vs analyst estimates of $0.95 (10.2% beat)
- Adjusted EBITDA: $205.1 million vs analyst estimates of $186.6 million (3.2% margin, 9.9% beat)
- Revenue Guidance for Q1 CY2026 is $6.35 billion at the midpoint, above analyst estimates of $5.89 billion
- Adjusted EPS guidance for Q1 CY2026 is $1.25 at the midpoint, above analyst estimates of $1.20
- Operating Margin: 2.7%, in line with the same quarter last year
- Market Capitalization: $5.16 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Avnet’s Q4 Earnings Call
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William Stein (Truist Securities) asked about order patterns and backlog visibility. CEO Philip Gallagher said bookings were strong through October and November but tapered in December, with increased customer willingness to place longer-term orders providing better future visibility.
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Joseph Michael Quatrochi (Wells Fargo) inquired about regional seasonality and the impact on guidance. Gallagher explained that the Americas and EMEA are expected to follow typical seasonal increases, which contrasts with the anomaly seen last year, and Asia’s decline around Lunar New Year should be less pronounced than usual.
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Ruplu Bhattacharya (Bank of America) asked how supplier price hikes affect Avnet’s revenues and margins. Gallagher clarified that spot price increases in memory and select components can lift both prices and margins, especially in the non-contracted business, while contracted customers see price pass-throughs with limited margin impact.
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Bhattacharya (BofA, follow-up) sought clarity on Farnell’s margin improvement as Europe recovers. Gallagher said incremental European growth could accelerate Farnell’s margin gains, possibly beyond the 50 basis point quarterly improvements currently targeted, especially with a favorable product mix.
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**The Q&A session concluded after these detailed discussions, with no further analyst questions posed to management as the call ended promptly afterwards.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely watch (1) continued regional recovery in Europe and the Americas for signs of margin expansion, (2) the evolution of pricing dynamics in memory and passive components as supply-demand imbalances shift, and (3) progress in digital and supply chain initiatives designed to improve operating leverage. Developments in inventory management and the mix of higher-margin product sales will also be important markers of execution.
Avnet currently trades at $63.01, up from $52.68 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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