Avnet (AVT)
NASDAQInformation TechnologyTechnology DistributorsSnapshot 2026-09-04
$92.06+1.37%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyTechnology DistributorsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Avnet grows revenue from $5.31B to $7.12B in one year. Profit margins improved with gross profit rising by $151M. Operating income increased by $62M, showing better profits. The company trades cheaply with a PE of 19.5 versus peers at 45.
Growth could slow and margins shrink if supply chain or demand weakens. The recent 7% pullback shows some investor caution. Capital obligations may pressure cash flow.
The price is about 14% below our fair value near $96. Analysts expect 23% revenue growth. Our view aligns with this but sees risk from margin pressure and capital costs.
Breaks if: Gross profit falls below $600M in fiscal Q3 2026
Continue to expand gross profit margins through disciplined execution and operational leverage.
Stated as a priority in 3 of last 3 quarters. Operating income margin improved from 1.3% in 2025-Q4 to 2.8% in 2026-Q4, with adjusted margin rising from 2.5% to 3.8%. This margin expansion aligns with management's focus on disciplined execution and operational leverage, indicating delivering progress on margin improvement.
“Operating income margin of 2.8% expanded 147 basis points year over year.”
“Operating income margin of 2.9% expanded 58 basis points sequentially.”
“Momentum continues to build... with significant margin expansion.”
Breaks if: Operating income falls below $150M in fiscal Q3 2026
Breaks if: Revenue falls below $6.0B in fiscal Q3 2026
Focus on driving revenue growth across all regions and segments with record sales and broad market momentum.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $5.62B in 2025-Q4 to $8.30B in 2026-Q4, a 48% year-over-year increase, with sequential growth from $7.12B in 2026-Q3 to $8.30B in 2026-Q4. Management's statements and financials show delivering strong revenue growth with broad regional momentum.
“Record quarterly sales of $8.3 billion, an increase of 48% year over year and 17% sequentially.”
“Sales of $7.1 billion, an increase of 34% year over year and 13% sequentially.”
“Momentum continues to build across all regions, end markets and customer segments.”
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and margin improvement. The current thesis state is intact, as recent financial results remain strong despite some recent challenges.
The market seems to have priced in a neutral valuation, with AVT appearing cheap compared to its peers. There is an expectations gap, indicating that the market may not fully appreciate the company's potential for growth.
Management's execution is likely to continue driving revenue and operating income growth, as evidenced by their recent performance. However, there is a moderate risk of missing future earnings expectations, which could impact sentiment.
The thesis hinges on several factors, including potential guidance cuts, interest rate changes by the Fed, and the performance of sector peers. Positive developments in these areas could support AVT's growth trajectory.
Overall, AVT's fundamentals appear strong, but the investment thesis is sensitive to external factors and management execution. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat indicates strong revenue growth performance. Additionally, the company provided positive guidance for future sales. There are no new threats impacting the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.