Avnet's sales surge comes with a heavy cash bill
Avnet exceeded its same-quarter sales and adjusted earnings forecast, while inventory and receivables consumed cash. The extra reporting week does not explain away the beat.
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Avnet, Inc.
Avnet distributes electronic components and supports customers designing and producing electronic systems. Its Farnell business serves engineers and smaller-volume buyers through a separate distribution model.
- Ticker
- AVT
- Exchange
- XNAS
- SEC CIK
- 0000008858
Avnet's sharp sales expansion also increases the funding needed for inventory and customer receivables. The first quarter of fiscal 2027 exceeded a forecast that already included the extra reporting week.
Sales and operating cash
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | $10,718.0 | $5,898.6 |
| Operating cash flow | −$842.4 | −$144.6 |
Sales were also above the preceding quarter's $8.2954 billion. Current-quarter net income was $282.2 million, or $3.28 per diluted share. Adjusted diluted EPS was $3.63; it removes restructuring, acquired amortization, foreign-exchange and tax items.
Inventory and financing
Inventory absorbed $2.122 billion of cash and receivables $893.3 million, partly funded by a $1.810 billion increase in trade payables. Compared with the previous quarter, inventory days were roughly flat at 72, while net working-capital days fell five to 64.
At October 3, cash and cash equivalents were $236.8 million. Short-term debt was $861.5 million and long-term debt was $3.306 billion, both carrying amounts. Net financing inflows during the quarter were $950.8 million. On October 13, Avnet increased revolving credit commitments by $1 billion to $2.75 billion, after quarter-end.
Fiscal 2027 second-quarter outlook
Avnet forecasts sales of $11.1 billion to $11.4 billion and adjusted EPS of $3.90 to $4.10. The reported quarter's sales growth extends beyond the extra week: Avnet estimates growth of 70.6% after excluding that week's $654 million sales contribution.
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