AVNET INC
For the period ended Oct 3, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 3, 2026 · Filed Nov 6, 2026
AVT$79.28+3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-05-01.
0000008858-26-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-10-03; filed 2026-11-06.
0000008858-26-000123
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 70 current paragraphs.
32 unchanged; 25 reworded; 13 added; 19 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
During the first quarter of fiscal 2027, the Company continued to experience improving market conditions as demand for electronic components and pricing for memory related components strengthened, including demand associated with data center applications including those that support artificial intelligence, resulting in year-over-year sales growth across all regions. The Company continues to see strengthening demand across its’ end markets, while broader industry conditions continue to be influenced by product availability and memory pricing, global economic conditions, geopolitical developments and changes in global trade policies. These factors may affect customer demand, product costs, market volatility and currency exchange rates.
Current report
The Company expects sales in the second quarter of fiscal 2027 to grow from the first quarter of fiscal 2027. The Company has historically used cash from operations for working capital investments during periods of higher growth.
Current report
The following table presents the reconciliation of reported sales to organic sales for the first quarter of fiscal 2027 by region and by operating group.
Current report
(1)The impact of the additional week of sales in the first quarter of fiscal 2027 is estimated.
Current report
(1)Percentage change in sales excluding the impact of the additional week of sales in the first quarter of fiscal 2027.
Current report
First quarter fiscal 2027 sales were $10.72 billion, an increase of $4.82 billion, or 81.7%, from $5.90 billion in the prior-year first quarter. The increase was primarily driven by higher sales volumes across both EC and Farnell, including the impact of an additional week of sales in the first quarter of fiscal 2027, and, to a lesser extent, higher pricing, primarily for certain memory-related products within EC.
Current report
First quarter fiscal 2027 gross profit margin was 10.0%, a decrease of 40 basis points from 10.4% in the prior-year first quarter. The decrease in gross profit margin was primarily due to the previously discussed differences in product and customer mix in the Western regions of the EC operating group.
Current report
EC first quarter fiscal 2027 operating income was $484.5 million, an increase of $325.4 million, or 204.7%, from $159.0 million in the prior-year first quarter. EC first quarter operating income margin was 4.8%, an increase of 189 basis points from 2.9% in the prior-year first quarter. Farnell first quarter operating income was $58.6 million, an increase of $41.5 million, or 242.7%, from $17.1 million in the prior-year first quarter. Farnell first quarter operating income margin was 10.1%, an increase of 576 basis points from 4.3% in the prior-year first quarter. Operating income and operating income margins at both EC and Farnell benefited from the increase in sales, as SG&A expenses increased at a lower rate than sales.
Current report
First quarter fiscal 2027 interest and other financing expenses were $91.9 million, an increase of $32.1 million, or 53.7%, from $59.8 million in the prior-year first quarter. The increase in interest and other financing expenses in the first quarter of fiscal 2027 compared to the prior-year first quarter is primarily the result ofhigher average borrowings.
Current report
First quarter fiscal 2027 income tax expense was $89.5 million, an increase of $64.4 million, or 257%, from $25.1 million in the prior-year first quarter. First quarter fiscal 2027 income tax expense reflected an effective tax rate of 24.1%, a decrease of 856 basis points from 32.6% in the prior-year first quarter. The decrease in the effective tax rate for the first quarter of fiscal 2027 was primarily related to the effect of changes in tax rates enacted in foreign jurisdictions in fiscal 2026. See Note 7 “Income taxes” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Current report
First quarter fiscal 2027 net income was $282.2 million, an increase of $230.4 million, or 445.3%, from $51.7 million in the prior-year first quarter. First quarter fiscal 2027 net income per share on a diluted basis was $3.28, an increase of $2.67, or 437.7%, from $0.61 in the prior-year first quarter. The increases in net income and net income per share on a diluted basis were primarily attributable to the factors discussed in the preceding MD&A discussion.
Current report
Net cash used for operating activities was $842.4 million for the first quarter of fiscal 2027, up from $144.6 million in the same period of prior fiscal year. The increase was primarily due to higher working capital requirements to support the $4.82 billion increase in sales. The Company used $1.20 billion of cash for working capital in the first quarter of fiscal 2027, compared to $217.5 million in the prior-year period.
Current report
In October 2026, the Company amended its Credit Facility to increase the aggregate revolving commitments by $1.00 billion to a limit of $2.75 billion and to permit the Company to request up to $1.00 billion of additional commitments.
Removed paragraphs (19)
Previous report
The Company’s operations subject it to tariffs and other trade protection measures. The U.S. administration has instituted certain changes, and may make additional changes, in trade policies that include the negotiation or termination of trade agreements, higher tariffs on imports into the U.S., and other measures affecting trade between the U.S. and other countries from which the Company imports. Due in part to these measures, some countries are changing their trade policies relating to goods imported from the U.S. These global trade disruptions and geopolitical tensions, together with any related downturns in the global economy, could dampen customer demand, increase market volatility, and impact currency exchange rates, all of which could materially and adversely affect the Company’s financial performance.
Previous report
In February 2026, the U.S. Supreme Court issued a ruling striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including, among others, tariffs on imports of certain Canadian, Chinese, and Mexican goods, a universal baseline tariff on imports from most countries, and reciprocal tariffs on select countries. The global tariff landscape continues to shift rapidly, with changes impacting businesses and markets around the world.
Previous report
The Company continues to monitor the situation, including any potential refunds of such tariffs, and evaluate the impact on its results of operations. No potential refunds have been recorded in the Consolidated Financial Statements as the Company cannot reasonably estimate the financial impact.
Previous report
Sales related to customer billings for various tariffs were less than one percent of total sales for the first nine months of fiscal 2026 and during fiscal 2025.
Previous report
The global electronic components market has a history of cyclical downturns followed by periods of increased demand. During the past two fiscal years, the Company’s overall business experienced a downturn marked by a decrease in sales due to a combination of elevated customer inventory levels and lower underlying demand for electronic components. As a result, the Company’s sales and operating income declined.
Previous report
During the first nine months of fiscal 2026, the Company’s financial performance has improved as overall demand for electronic components is improving. During the third quarter of fiscal 2026, the Company experienced both year-over-year and quarter-over-quarter sales growth across all regions and an improvement in the days of inventory on hand. The Company expects sales in the fourth quarter of fiscal 2026 will grow approximately 5% compared to third quarter sales with expected sales growth across all regions.
Previous report
Third quarter fiscal 2026 sales reached $7.12 billion, up 34.0% or $1.80 billion from $5.32 billion for the same quarter last year, with growth across all EC regions and Farnell. Sales for the first nine months of fiscal 2026 were $19.34 billion, an increase of $2.75 billion over sales for the first nine months of fiscal 2025, driven by strong performance in both EC and Farnell operating groups across all end markets served.
Previous report
Gross profit margin decreased by 68 basis points to 10.4% for the third quarter of fiscal 2026 when compared to the third quarter of fiscal 2025. For the first nine months of fiscal 2026, gross margin decreased by 37 basis points to 10.4% when compared to the first nine months of fiscal 2025.
Previous report
The Company expects to incur additional restructuring, integration and other expenses in fourth quarter of fiscal 2026 related to start-up costs associated with a new distribution center in EMEA as well as costs associated with the closure of another distribution center in EMEA.
Previous report
Comparatively, the Company recorded restructuring, integration, and other expense costs of $9.1 million and $39.3 million during the third quarter and first nine months of fiscal 2025, respectively.
Previous report
Comparing the third quarter of fiscal 2026 to the third quarter of fiscal 2025, EC operating income increased 36.6% to $235.2 million, and EC operating income margin increased 5 basis points to 3.5%. Farnell operating income increased 116.8% to $23.8 million in the third quarter of fiscal 2026. Farnell operating income margin increased 224
Previous report
basis points year-over-year to 5.2%. The increases in operating income and operating income margin in Farnell are due to higher sales and higher gross profit margin.
Previous report
Operating income for the first nine months of fiscal 2026 was $493.8 million, an increase of $53.0 million from the first nine months of fiscal 2025 operating income of $440.8 million. The year-over-year increase in operating income was primarily due to the higher gross profit margin in Farnell offset by the increase in SG&A expenses. Adjusted operating income for the first nine months of fiscal 2026 was $543.1 million, an increase of $61.9 million or 12.9% from the first nine months of fiscal 2025. Operating income margin was 2.6% in the first nine months of fiscal 2026, a decrease of 11 basis points compared to 2.7% in the prior year first nine months.
Previous report
Interest and other financing expenses in the third quarter of fiscal 2026 were $63.1 million, an increase of $2.0 million as compared to $61.1 million in the third quarter of fiscal 2025. Interest and other financing expenses in the first nine months of fiscal 2026 were $184.3 million, a decrease of $3.7 million, as compared with interest and other financing expenses of $188.0 million in the first nine months of fiscal 2025. The increase in interest and other financing expenses in the third quarter of fiscal 2026 compared to fiscal 2025 is primarily a result ofhigher average borrowings.
Previous report
Income tax expense for the third quarter and first nine months of fiscal 2026 were $46.2 million and $99.5 million, respectively, reflecting an effective tax rate of 32.9% and 32.4%, respectively. In comparison, for the third quarter and first nine months of fiscal 2025, income tax (benefit) expense were $ (9.8) million and $9.0 million, respectively, reflecting an effective tax rate of (12.5)% and 3.7%, respectively. The increase in the effective tax rate for the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025 was primarily related to the tax attribute carryforwards generated in fiscal 2025 but not in fiscal 2026 and the mix of income in higher tax jurisdictions. The increase in the effective tax rate for the first nine months of fiscal 2026 as compared to the first nine months of fiscal 2025 was primarily related to the tax attribute carryforwards that were generated in fiscal 2025 but not in fiscal 2026. See Note 7 “Income taxes” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Previous report
As a result of the prior factors described, the Company’s net income for the third quarter of fiscal 2026 was $94.3 million, or $1.14 per share on a diluted basis, as compared with $87.9 million, or $1.01 per share on a diluted basis, in the third quarter of fiscal 2025.
Previous report
As a result of the prior factors described, the Company’s net income for the first nine months of fiscal 2026 was $207.8 million, or $2.49 per share on a diluted basis, as compared with $234.1 million, or $2.65 per share on a diluted basis, in the first nine months of fiscal 2025.
Previous report
Net cash from operating activities was $9.8 million for the first nine months of fiscal 2026, down from $585.0 million in the same period of fiscal 2025. The decline was mainly due to $296.5 million used for working capital in the first nine months of fiscal 2026 to support sales growth, compared to $282.4 million generated in 2025. Increases in accounts receivable and inventory in fiscal 2026 were primarily to support sales growth, partially offset by increases to accounts payable from inventory purchases and certain accruals. The Company used $61.4 million of cash from operations to settle an audit in Mexico.
Previous report
The Credit Facility includes a $250 million accordion feature under which the revolving line of credit may be increased up to $1.75 billion through an amendment, which the Company exercised in April 2026. The Company also repaid the $550 million 4.63% Notes due April 2026 with available borrowing capacity under the Credit Facility.
Reworded paragraphs (25)
Previous wording
For a description of the Company’s critical accounting policies and an understanding of Avnet and the significant factors that influenced the Company’s performance during the quarter ended March 28, 2026, thisManagement’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the consolidated financial statements, including the related notes, appearing in Item 1 of this Quarterly Report on Form 10-Q, as well as the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2025.
Current wording
For a description of the Company’s critical accounting policies and an understanding of Avnet and the significant factors that influenced the Company’s performance during the quarter ended October 3, 2026, thisManagement’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the consolidated financial statements, including the related notes, appearing in Item 1 of this Quarterly Report on Form 10-Q, as well as the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2026. The Company operates on a “52/53 week” fiscal year and fiscal 2027 contains 53 weeks compared to 52 weeks in fiscal 2026. As a result, the first quarter of fiscal 2027 ended October 3, 2026, contained 14 weeks and the first quarter of fiscal 2026 ended September 27, 2025, contained 13 weeks. This extra week in the first quarter of fiscal 2027 impacts the year-over-year analysis in this MD&A.
Previous wording
Avnet has two primary operating groups — Electronic Components (“EC”) and Farnell, which are discussed further in Note 12 “Segment information” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Current wording
Avnet has two reportable segments — Electronic Components (“EC”) and Farnell, which are discussed further in Note 12 “Segment information” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Previous wording
The following table presents the percentage change in sales for the third quarter and first nine months of fiscal 2026 as compared to the third quarter and first nine months fiscal 2025, by geographic region and operating group.
Current wording
The following table presents the reported and organic percentage change in sales for the first quarter of fiscal 2027 as compared to the first quarter of fiscal 2026, by geographic region and operating group.
Previous wording
EC sales were $6.67 billion in the third quarter of fiscal 2026, representing a $1.72 billion increase, or 34.7%, over prior year third quarter sales of $4.95 billion. All three EC regions contributed to this growth led by the Company’s Asia region. The increase in EC sales was mainly attributable to increased sales volumes and the mix of higher-priced components and to a lesser extent from increase in prices for certain memory-related products.
Current wording
EC sales in the first quarter of fiscal 2027 were $10.13 billion, an increase of $4.63 billion, or 84.3%, from $5.50 billion in the prior-year first quarter. All three EC regions contributed to this growth led by the Company’s Americas region. The increase in EC sales was mainly attributable to increased sales volumes and the mix of higher-priced components and to a lesser extent from increase in prices for certain memory-related products.
Previous wording
Farnell sales for the third quarter of fiscal 2026 were $454.7 million, reflecting an increase of $88.0 million, or 24.0%, compared to the same period in the prior year. The increase in sales in the third quarter of fiscal 2026 is primarily due to improvement in demand for single board computers and on-the-board electronic components. The increase in sales at Farnell was primarily driven by an increase in volumes as increases in components pricing were insignificant during the third quarter of fiscal 2026.
Current wording
Farnell sales in the first quarter of fiscal 2027 were $583.3 million, an increase of $184.4 million, or 46.2%, from $398.9 million in the prior-year first quarter. The increase in sales in the first quarter of fiscal 2027 is primarily due to improvement in demand for on-the-board electronic components and single board computers. The increase in sales at Farnell was primarily driven by an increase in sales volumes and the mix of higher-priced components as increases in components pricing were minimal during the first quarter of fiscal 2027.
Previous wording
The Company’s gross profit and gross profit margin are primarily affected by sales volume, product mix, customer mix and pricing, and geographic sales mix. Gross profit for the third quarter of fiscal 2026 increased $151.2 million, or 25.7% from the third quarter of fiscal 2025. Gross profit for the first nine months of fiscal 2026 increased $225.6 million, or 12.6% from the first nine months of fiscal 2025.This increase in gross profit is primarily due to sales increases in both operating groups previously discussed, partially offset by declines in gross profit margin in the EC operating group, which was driven by a higher percentage of sales coming from the lower margin Asia region and from differences in product and customer mix in the Western regions.
Current wording
The Company’s gross profit and gross profit margin are primarily affected by sales volume, product mix, customer mix and pricing, and geographic sales mix. First quarter fiscal 2027 gross profit was $1.07 billion, an increase of $459.2 million, or 74.7%, from $614.8 million in the prior-year first quarter. This increase in gross profit is primarily due to sales increases in both operating groups previously discussed, slightly offset by declines in gross profit margin in the EC operating group, which was primarily driven by the differences in product and customer mix in the Western regions.
Previous wording
EC gross profit margin decreased year over year largely due to the factors discussed previously. Farnell gross profit margin increased year over year, primarily due to an increase in product mix of on-the-board electronic components.
Current wording
EC first quarter fiscal 2027 gross profit margin was 8.9%, a decrease of 29 basis points from 9.2% in the prior-year first quarter. The year-over-year decrease was largely due to the factors discussed previously. Farnell first quarter fiscal 2027 gross profit margin was 29.0%, an increase of 199 basis points from 27.0% in the prior-year first quarter. The increase was primarily due to an increase in product mix of on-the-board electronic components.
Previous wording
Selling, general, and administrative expenses (“SG&A expenses”) increased $83.3 million or 19.1% from the third quarter of fiscal 2025, and increased $163.7 million, or 12.5% from the first nine months of fiscal 2025. The increase in SG&A expenses is primarily due to increases in variable operating expenses associated with higher sales volumes and the impact of changes in foreign currency translation rates.
Current wording
First quarter fiscal 2027 selling, general, and administrative expenses (“SG&A expenses”) were $576.3 million, an increase of $111.9 million or 24.1% from $464.4 million the first quarter of fiscal 2026. The increase in SG&A expenses is primarily due to increases in variable operating expenses associated with higher sales volumes, the impact of changes in foreign currency translation rates, and from the extra week in the first quarter of fiscal 2027.
Previous wording
Management monitors SG&A expenses as a percentage of sales and as a percentage of gross profit. In the third quarter of fiscal 2026, SG&A expenses were 7.3% of sales and 70.2% of gross profit, as compared with 8.2% and 74.1%, respectively, in the third quarter of fiscal 2025. SG&A expenses were 7.6% as a percentage of sales and 73.1% as a percentage of gross profit for the first nine months of fiscal 2026, as compared with 7.9% and 73.2%, respectively, in the first nine months of fiscal 2025. The year-over-year decrease in SG&A expenses as a percentage of gross profit is primarily due to the increase in sales as discussed previously without a corresponding increase in SG&A expenses partially offset by the decline in gross profit margin in EC as explained in the prior discussion.
Current wording
Management monitors SG&A expenses as a percentage of sales and as a percentage of gross profit. In the first quarter of fiscal 2027, SG&A expenses were 5.4% of sales and 53.7% of gross profit, as compared with 7.9% and 75.5%, respectively, in the first quarter of fiscal 2026. The year-over-year decrease in SG&A expenses as a percentage of gross profit is primarily due to the increase in sales as discussed previously without a corresponding increase in SG&A expenses partially offset by the decline in gross profit margin in EC as explained in the prior discussion.
Previous wording
The Company recorded total restructuring, integration, and other expenses in the third quarter of fiscal 2026 of $14.7 million, consisting of $7.8 million of severance and other restructuring related expenses, and $6.9 million of integration and other costs primarily related to start-up costs associated with a new distribution center in EMEA, partially offset by a benefit due to a change in estimate from the settlement of an audit in Mexico. The after-tax impact of restructuring, integration, and other expenses were $8.8 million and $0.11 per share on a diluted basis.
Current wording
First quarter fiscal 2027 restructuring, integration, and other expenses were $23.0 million, an increase of $14.6 million or 176.6% from $8.3 million in the first quarter of fiscal 2026. Included in the first quarter of fiscal 2027 restructuring, integration, and other expenses were $4.7 million of severance and other restructuring related expenses, and $18.3 million of integration and other costs primarily related to start-up costs associated with a new distribution center in EMEA. The after-tax impact of restructuring, integration, and other expenses were $16.7 million and $0.20 per share on a diluted basis.
Previous wording
During the first nine months of fiscal 2026, the Company incurred restructuring, integration, and other expense costs of $48.2 million, consisting of $18.9 million of severance and other employee-related expenses, and $29.3 million of integration and other costs. The after-tax impact of restructuring, integration, and other expenses were $33.0 million and $0.40 per share on a diluted basis.
Current wording
Comparatively, first quarter fiscal 2026 restructuring, integration, and other expenses consisted of $1.6 million of severance and other employee-related expenses, and $6.7 million of integration and other costs.
Previous wording
Operating income for the third quarter of fiscal 2026 was $205.5 million, an increase of $62.3 million or 43.5%, year over year. Operating income margin for the third quarter of fiscal 2026 was 2.9%, an increase of 19 basis points compared to 2.7% in the third quarter of fiscal 2025. Adjusted operating income for the third quarter of fiscal 2026 was $220.6 million, an increase of $67.9 million, or 44.5%. Adjusted operating income margin for the third quarter of fiscal 2026 was 3.1% compared to 2.9% in the third quarter of fiscal 2025. The increase in operating income margin and adjusted operating income margin is primarily due to growth across EC and Farnell.
Current wording
First quarter fiscal 2027 operating income was $474.7 million, an increase of $332.7 million or 234.3%, from $142.0 million in the prior-year first quarter. First quarter fiscal 2027 operating income margin was 4.4%, an increase of 202 basis points from 2.4% in the prior-year first quarter. First quarter fiscal 2027 adjusted operating income was $498.1 million, an increase of $347.4 million, or 230.5%, from $150.7 million in the prior-year first quarter. First quarter fiscal 2027 adjusted operating income margin was 4.7%, an increase of 210 basis points from 2.6% in the prior-year first quarter. The increase in operating income margin and adjusted operating income margin is primarily due to the sales growth across EC and Farnell.
Previous wording
Net proceeds of debt totaled $284.6 million during the first nine months of fiscal 2026, including net proceeds of $633.8 million from the issuance of Convertible Notes, $268.1 million for term loans, and $18.8 million of other debt, offset by net repayments of $409.5 million under the Credit Facility, and $226.5 million under the Securitization Program. This compares to $270.3 million of net repayments during the first nine months of the prior fiscal year.
Current wording
Net debt proceeds were $978.2 million during the first quarter of fiscal 2027, compared with $320.8 million in the prior-year period, primarily reflecting increased borrowings to support the working capital requirements associated with sales growth. The fiscal 2027 net proceeds included $545.6 million from the issuance of Notes, $648.9 million under the Credit Facility, and $375.0 million for term loan, partially offset by net repayments of $474.6 million under the Securitization Program, $88.9 million for term loans, and $27.7 million of other debt.
Previous wording
The Company has repurchased $138.3 million of common stock under its share repurchase plan during the first nine months of fiscal 2026 compared to $253.5 million in the same period of the prior fiscal year. The Company paid cash dividends to shareholders of $1.05 per share, or $85.6 million, during the first nine months of fiscal 2026 as compared to $0.99 per share, or $85.6 million, during the first nine months of fiscal 2025.
Current wording
The Company did not repurchase any shares of common stock under its share repurchase plan during the first quarter of fiscal 2027 compared to $138.3 million in the same period of the prior fiscal year. The Company paid cash dividends to shareholders of $0.37 per share, or $30.4 million, during the first quarter of fiscal 2027 as compared to $0.35 per share, or $28.5 million, during the first quarter of fiscal 2026.
Previous wording
Net cash used in investing activities decreased by $21.7 million during the first nine months of fiscal 2026 compared to the same period in 2025, primarily due to lower capital expenditures.
Current wording
Net cash used in investing activities decreased by $1.1 million during the first quarter of fiscal 2027 compared to the same period in 2026, primarily due to lower capital expenditures.
Previous wording
For a detailed description of the Company’s long-term debt and lease commitments for the next five years and thereafter, seeLong-Term Contractual Obligations appearing in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2025 and Note 4 “Debt” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q. There are no material changes to this information outside of the issuance of Convertible Notes, entering into a term loan and other normal borrowings and repayments of long-term debt and operating lease payments. The Company does not currently have any material non-cancellable commitments for capital expenditures or inventory purchases outside of the normal course of business.
Current wording
For a detailed description of the Company’s long-term debt and lease commitments for the next five years and thereafter, seeLong-Term Contractual Obligations appearing in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2026 and Note 4 “Debt” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q. There are no material changes to this information other than normal borrowings and repayments of long-term debt and operating lease payments. The Company does not currently have any material non-cancellable commitments for capital expenditures or inventory purchases outside of the normal course of business.
Previous wording
The Company has various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations to fund the working capital, foreign exchange, overdraft, capital expenditure, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of third quarter of fiscal 2026 were $125.7 million.
Current wording
The Company has various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations to fund the working capital, foreign exchange, overdraft, capital expenditure, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of first quarter of fiscal 2027 were $139.0 million.
Previous wording
The Company held cash and cash equivalents of $202.4 million as of March 28, 2026, of which $193.5 million was held outside the United States. As of June 28, 2025, the Company held cash and cash equivalents of $192.4 million, of which $181.8 million was held outside of the United States.
Current wording
The Company held cash and cash equivalents of $236.8 million as of October 3, 2026, of which $211.9 million was held outside the United States. As of June 27, 2026, the Company held cash and cash equivalents of $155.4 million, of which $146.4 million was held outside of the United States.
Previous wording
During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company will use cash for working capital requirements during periods of higher growth. The Company generated $149.3 million in cash flows from operating activities over the trailing four fiscal quarters ended March 28, 2026.
Current wording
During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company will use cash for working capital requirements during periods of higher growth. The Company used $978.7 million in cash flows for operating activities over the trailing four fiscal quarters ended October 3, 2026.
Previous wording
Liquidity is subject to many factors, such as normal business operations and general economic, financial, competitive, legislative, and regulatory factors that are beyond the Company’s control. Cash balances held in foreign locations that cannot be remitted back to the U.S. in a tax efficient manner are generally used for ongoing working capital, including the need to purchase inventories, capital expenditures, and other foreign business needs. In addition, local government regulations may restrict the Company’s ability to move funds among various locations under certain circumstances. Management does not believe such restrictions would limit the Company’s ability to pursue its intended business strategy.
Current wording
The Company’s liquidity is affected by a variety of factors, including normal business operations and general economic, financial, competitive, legislative and regulatory conditions, many of which are outside the Company’s control. Cash balances held outside the United States that cannot be remitted in a tax-efficient manner are generally used to support local working capital requirements, including inventory purchases, capital expenditures and other foreign business needs. In addition, local government regulations may restrict the Company’s ability to transfer funds among jurisdictions under certain circumstances. Management does not believe these restrictions would limit the Company’s ability to execute its intended business strategy.
Previous wording
In September 2025, the Company issued $650 million aggregate principal amount of convertible senior notes due 2030 (see Note 4). The Company used the net proceeds to (i) reduce the Credit Facility by $533.8 million and (ii) repurchase $100 million of the Company’s common stock in privately negotiated transactions entered into in connection with the convertible debt offering.
Current wording
In August 2026, the Company issued $550 million aggregate principal amount of 5.65% Notes due 2031 (see Note 4). The Company used the net proceeds to repay outstanding amounts under its Credit Facility and Securitization Program.
Previous wording
As of the end of the third quarter of fiscal 2026, the Company had a combined total borrowing capacity of $2.0 billion under the Credit Facility and the Securitization Program. There were no borrowings outstanding and $0.8 million in letters of credit issued under the Credit Facility, and $273.5 million outstanding under the Securitization Program, resulting in approximately $1.73 billion of total committed availability as of March 28, 2026. Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable in the United States to support desired borrowings. The Company expects to renew or replace the Securitization Program on similar terms with a larger capacity, subject to market conditions, before its maturity in December 2026.
Current wording
As of the end of the first quarter of fiscal 2027, the Company had a combined total borrowing capacity of $2.45 billion under the Credit Facility and the Securitization Program. There were $1.18 billion borrowings outstanding and $0.7 million in letters of credit issued under the Credit Facility, and $25.4 million outstanding under the Securitization Program, resulting in approximately $1.24 billion of total committed availability as of October 3, 2026. Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable in the United States to support desired borrowings.
Previous wording
During the third quarter and first nine months of fiscal 2026, the Company had an average daily balance outstanding of approximately $637.0 million and $652.3 million, respectively, under the Credit Facility, and approximately $488.0 million and $475.6 million, respectively, under the Securitization Program. The Company also has average borrowings that are higher than quarter end borrowings from various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations.
Current wording
During the first quarter of fiscal 2027, the Company had an average daily balance outstanding of approximately $1.31 billion under the Credit Facility, and approximately $638.4 million under the Securitization Program. The Company also has average borrowings that are higher than quarter end borrowings from various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations.
Previous wording
As of March 28, 2026, the Company does not expect to repurchase additional shares until its’ consolidated leverage ratio returns to historical levels. When share repurchases resume, the Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions (including share price), and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. The Company has $225.8 million of capacity remaining on the share repurchase program approved by the Board of Directors as of March 28, 2026.
Current wording
As of October 3, 2026, the Company does not expect to repurchase additional shares during the remainder of 2026. When share repurchases resume, the Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions (including share price), and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. The Company has $225.8 million of capacity remaining on the share repurchase program approved by the Board of Directors as of October 3, 2026.
Previous wording
The Company has historically paid quarterly cash dividends on shares of its common stock, and future dividends are subject to approval by the Board of Directors. During the third quarter of fiscal 2026, the Board of Directors approved a dividend of $0.35 per share, which resulted in $28.7 million of dividend payments during the quarter.
Current wording
The Company has historically paid quarterly cash dividends on shares of its common stock, and future dividends are subject to approval by the Board of Directors. During the first quarter of fiscal 2027, the Board of Directors approved a dividend of $0.37 per share, which resulted in $30.4 million of dividend payments during the quarter.