On Wednesday, Avnet, Inc. (NASDAQ:AVT) released its fiscal fourth-quarter 2025 results, beating analyst predictions with adjusted earnings per share of $0.81, above the anticipated $0.74, and revenue of $5.6 billion, exceeding the consensus of $5.36 billion.
The electronics components distributor posted a 1.0% year-over-year rise in quarterly sales, although its adjusted operating income margin narrowed to 2.5% from 3.5% a year earlier.
Looking ahead to the first quarter of fiscal 2026, Avnet forecast adjusted earnings between $0.75 and $0.85 per share, slightly below the $0.90 consensus estimate. Revenue guidance ranged from $5.55 billion to $5.85 billion, roughly matching analyst expectations of $5.56 billion.
“In fiscal year 2025, we executed well given the overall market environment,” said Avnet Chief Executive Officer Phil Gallagher. “We remain optimistic about the recovery led by steady growth in our Asia region and the return of Farnell to year-over-year growth, which enabled us to surpass the high end of our fourth-quarter sales and earnings guidance.”
Avnet noted its fourth straight quarter of year-over-year sales gains in Asia, where revenue climbed 17.6%. However, this was partly offset by a 16.7% drop in sales across Europe, the Middle East, and Africa (EMEA), along with a 2.0% decline in the Americas.
The Farnell division, focused on small-quantity electronic component distribution, saw sales rise 3.0% year-over-year, with its operating income margin improving to 4.3% from 4.0% in the same period last year.
During the quarter, Avnet generated $139 million in operating cash flow and returned $78 million to shareholders via $50 million in share buybacks and $28 million in dividends.
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