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    Stronger‑Than‑Expected Q4 and 2027 Outlook Could Be A Game Changer For Avnet (AVT)

    Simply Wall St·09/06/2026 14:24:57
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    • Avnet recently reported its fourth-quarter fiscal 2026 results, delivering revenue and earnings above expectations, supported by broad-based demand, margin gains, and record sales across its operating groups.
    • A particularly important takeaway is management’s fiscal 2027 outlook, which points to continued revenue growth and further margin expansion backed by improving demand and tight cost control.
    • We’ll now explore how this stronger-than-expected quarter and management’s confidence in ongoing margin expansion could reshape Avnet’s investment narrative.

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    Avnet Investment Narrative Recap

    To own Avnet, you need to believe its global components franchise can convert modest revenue growth into better profitability through disciplined cost control and higher value services. The latest revenue and earnings beat, paired with guidance for further margin expansion in fiscal 2027, supports that thesis and softens the near term risk that Asian mix and EMEA weakness could keep margins depressed, though regional and product mix remain key watchpoints.

    Among recent announcements, the 5.7% increase in the quarterly dividend to US$0.37 per share stands out in light of the strong quarter and management’s outlook. While dividend moves do not change the operating story, a higher payout, following improving earnings and margin trends, reinforces capital return as a secondary catalyst alongside operational execution, especially as Avnet balances investment needs with working capital and cash flow pressures.

    Yet, against this improving margin story, investors should still be aware of the risk that Asia driven mix shifts could keep pressuring Avnet’s overall profitability over time...

    Read the full narrative on Avnet (it's free!)

    Avnet’s narrative projects $45.8 billion revenue and $1.3 billion earnings by 2029. This requires 18.3% yearly revenue growth and an earnings increase of about $1.0 billion from $334.4 million.

    Uncover how Avnet's forecasts yield a $99.50 fair value, a 8% upside to its current price.

    Exploring Other Perspectives

    AVT 1-Year Stock Price Chart
    AVT 1-Year Stock Price Chart

    Some of the lowest ranked analysts were assuming Avnet would need to grow revenue to about US$37.5 billion and earnings to roughly US$1.4 billion by 2029, yet they still saw the shares only supporting a price near US$80. That is a far more pessimistic view than the consensus, and after a quarter of record sales, margin gains and a stronger fiscal 2027 outlook, it will be worth seeing whether such cautious expectations and related margin concerns remain justified.

    Explore 3 other fair value estimates on Avnet - why the stock might be worth as much as 30% more than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.