Avnet (NASDAQ:AVT) reports upbeat Q3 CY2026, provides optimistic revenue guidance for next quarter

What happened

Avnet reported calendar Q3 2026 revenue of $10.72 billion, up 81.7% year on year and above analysts’ expectations. Non-GAAP profit was $3.63 per share. For calendar Q4 2026, it guided to revenue of $11.25 billion at the midpoint and adjusted profit of $4 per share at the midpoint.

Confirmed

Global impact / market context

The results point to stronger demand for electronic components and could support higher sales for Avnet if the next quarter’s outlook is achieved. However, free cash flow, meaning cash left after operating needs and investment, was negative $866.7 million, substantially worse than a year earlier.

Analyst inference

Avnet’s reported revenue and next-quarter guidance both exceeded analysts’ estimates, while operating margin, meaning the share of sales remaining after operating costs, rose to 4.4% from 2.6% a year earlier. The negative free cash flow complicates the otherwise strong operating picture.

Analyst inference

What to watch

1. Compare calendar Q4 revenue and adjusted profit with Avnet’s guidance of $11.25 billion and $4 per share at the midpoint, respectively. Analyst inference
2. Watch whether free cash flow improves from negative $866.7 million; continued cash outflow could limit funds available for operations or other company needs. Analyst inference
3. Track whether the stronger demand cited by Avnet’s chief executive continues across its businesses, since sustained demand would help support sales growth. Analyst inference

Evidence

• stockstory.org