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Jun 28, 2025
Avnet Q4 2025 Earnings Report
Avnet reported a steep decline in net income and margins in Q4 2025, despite stable revenue and solid growth in Asia and Farnell.
Key Takeaways
In Q4 2025, Avnet generated $5.62 billion in revenue, up slightly year-over-year. However, net income dropped to $6.1 million with GAAP EPS of $0.07, primarily due to higher restructuring costs. Adjusted EPS was $0.81, while Asia and Farnell showed growth.
Revenue reached $5.62 billion, growing 1.0% year-over-year.
GAAP net income plunged to $6.1 million, down from $82.7 million a year ago.
Operating income margin dropped to 1.3% from 3.0%; adjusted margin fell to 2.5%.
Asia region and Farnell business posted strong growth despite overall margin compression.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q1 FY26, Avnet expects revenue between $5.55B and $5.85B and adjusted EPS between $0.75 and $0.85, implying sequential growth led by all regions.
Positive Outlook
- Q1 FY26 revenue guidance midpoint at $5.70B suggests 2% sequential growth.
- Adjusted EPS guidance midpoint of $0.80 indicates earnings resilience.
- Expected growth across all regions, including continued Asia momentum.
- Asia showed 17.6% YoY growth in Q4 and continues to lead recovery.
- Farnell returned to year-over-year growth in sales and margin.
Challenges Ahead
- GAAP EPS significantly lower than adjusted EPS due to restructuring and tax items.
- Operating income margin dropped by 170 bps YoY.
- EMEA revenue declined 16.7% YoY due to weaker demand.
- Sequential drop in adjusted operating income of 6.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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