Why This Matters to Distributors: Growth across regions and end markets signals improving conditions in electronics distribution, with inventory control and digital investments supporting performance.
Avnet Inc. reported strong sales growth in its fiscal third quarter, driven by demand across all regions and product segments.
The Phoenix-based distributor said sales totaled $7.12 billion in the quarter ending March 28, up 34% from $5.32 billion a year earlier and up 13% from the prior quarter.
Net income rose to $94.3 million from $87.9 million in the year-ago period.
CEO Phil Gallagher said sales and earnings exceeded expectations, citing demand across core markets and continued focus on cost control and inventory management.
Sales increased across all geographic regions. Revenue in the Americas rose 26.7% to $1.62 billion, while Europe, the Middle East and Africa increased 31.3% to $2.05 billion. Asia, the company’s largest region, grew 39.3% to $3.46 billion.
Avnet’s electronic components segment reported sales of $6.67 billion, up 34.7% from a year earlier. The Farnell unit posted sales of $454.7 million, up 24%.
Operating income rose to $205.5 million from $143.3 million in the prior-year period.
The company said it reduced inventory levels during the quarter, with days of inventory at 77 days, including less than 70 days in its electronic components business.
Looking ahead, Avnet forecast fourth-quarter sales between $7.3 billion and $7.6 billion. The outlook implies about 5% sequential growth at the midpoint and assumes growth across all electronic components regions.
Gallagher said investments in digital infrastructure and operational capabilities are supporting performance as demand strengthens.
For distributors, the results point to improving demand in electronics markets after a period of uneven activity, with growth supported by tighter inventory management and broader recovery across end markets.
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