Inventory value decline
Avnet holds large inventories in a fast-moving, price-competitive component market where demand shifts can make stock obsolete or less valuable.
- Scope
- Electronic components and distribution inventory
- Materiality
- high
Avnet, Inc
Avnet is a global distributor of electronic components and a solutions provider that connects semiconductor and component suppliers with customers designing, building, and maintaining electronic products. The company operates through two main groups: Electronic Components, which serves higher-volume industrial and technology customers, and Farnell, which supports lower-volume engineers, entrepreneurs, and prototyping customers through e-commerce. Beyond distribution, Avnet adds value through design support, supply-chain services, programming, assembly, testing, and logistics. Founded in 1921, it serves customers in more than 140 countries and is positioned as a broad-line intermediary in the electronics supply chain.
2,9 %
10,4 %
1,2 %
+24,5 %
1.78
0.97
| % | |
|---|---|
| Semiconductors | 78% Microcontrollers, analog, power, and other semiconductor products distributed through EC and Farnell. |
| Interconnect, passive & electromechanical | 18% Connectors, passives, relays, and related electromechanical components used in electronic assemblies. |
| Computers and single-board computers | 2% Computers and embedded computing products, including single-board computers for development and prototyping. |
| Other products and services | 2% Test and measurement, MRO, industrial automation, and related value-added services. |
Avnet serves two distinct customer bases. Its Electronic Components group focuses on high- and medium-volume customers...
- High- and medium-volume OEM customersprimary
Buy semiconductors and interconnect components for production programs and value Avnet's sourcing breadth, logistics, and design support.
- Industrial, automotive, defense and aerospaceprimary
Use Avnet for technically complex, long-lifecycle component supply and engineering support across regulated applications.
- Engineers, entrepreneurs, and prototyperssecondary
Buy small quantities of components, kits, and tools through Farnell to develop, prototype, and test products quickly.
- Embedded and compute customerssecondary
Purchase single-board computers, development kits, and related hardware for embedded applications and product development.
- Software companies using hardware solutionsemerging
Use integrated solutions and custom-built servers to bring software intellectual property to market via hardware.
Avnet operates globally and serves customers in more than 140 countries, with sales concentrated in the Americas, EMEA,...
- •Asia was 47.2% of fiscal 2025 sales and is the largest demand center
- •EMEA contributed 28.9% of fiscal 2025 sales
- •The Americas contributed 23.9% of fiscal 2025 sales
- •About 77% of sales came from outside the United States in fiscal 2025
- •Regional mix affects gross margin and operating income because demand shifts by geography
- •Foreign cash balances are used for working capital, inventory, and local needs
Avnet's strategy centers on being a high-value intermediary in the electronics supply chain rather than a pure...
01
Deepen value-added design and supply-chain servicesmedium-term
These services make Avnet harder to replace and improve customer stickiness in complex programs.
02
Maintain broad inventory and supplier coverageshort-term
A wide product line card and ready inventory help customers consolidate purchasing with Avnet.
03
Grow Farnell's digital and prototype-focused businessmedium-term
E-commerce and low-volume fulfillment address engineers and entrepreneurs with faster buying cycles.
Avnet faces cyclical demand risk because its customers buy electronic components for production programs, prototyping,...
Cyclical demand downturn
Customer orders are tied to industrial, automotive, compute, and communications cycles, so weak end-market demand can quickly reduce revenue and margins.
- Scope
- EC and Farnell sales
- Materiality
- high
International operations and geopolitical uncertainty
Roughly 77% of sales come from outside the United States, exposing the company to trade disputes, regional slowdowns, and logistics disruptions.
- Scope
- Asia, EMEA, and cross-border supply chains
- Materiality
- high
Cybersecurity and data privacy
A global distribution and e-commerce platform must protect customer, supplier, and financial data from evolving threats and regulatory penalties.
- Scope
- Enterprise systems and online ordering
- Materiality
- medium
Inventory lower-of-cost-or-net-realizable-value
Gross margin and inventory carrying value
Supplier rebates, return rights, and price protections
Inventory valuation and cost of sales
Income taxes and deferred tax asset valuation allowances
Effective tax rate and net income
Restructuring and integration expenses
GAAP vs non-GAAP operating performance
: 11/08/2026