Electronic components distributor Avnet reported its 2026 fiscal third quarter (covered Dec. 28-March 28) on April 29, showing year-over-year and sequential gains in total sales, while gross margin continued to decelerate.

The Phoenix-based company posted 3Q26 total sales of $7.1 billion — a 34% increase YoY  and up 13% sequentially.

• Asia sales (48.6% of total) were up 39% in constant currency (also reported)
• EMEA sales (28.7% of total) were up 19% in constant currency (+31% reported)
• Americas sales (22.7% of total) were up 27% in constant currency (also reported)

By operating group, Electronic Components sales (93.6% of total) were up 31% in constant currency (+35% reported) and Farnell sales (6.4% of total) were up 18% in constant currency (+24% reported).

Avnet’s 3Q26 gross margin of 10.4% ticked down 10 basis points sequentially and was down 70 bps year-over-year. Operating profit of $205.5 million jumped 43.5% YoY as operating margin of 2.9% improved 20 bps. Adjusted operating margin was 3.5% in Electronic Components (flat YoY, +30 bps sequentially) and was 5.2% in Farnell (+220 bps YoY, +50 bps sequentially).

The company detailed that end market demand improved during the quarter, with all end markets increasing year-over-year and sequentially. Industrial, networking and data center end markets increased by double-digits sequentially.

Avnet noted that pricing increased during 3Q26, substantially all memory-related. Meanwhile, lead times trended higher across most product categories and book-to-bill improved sequentially with all regions well above parity.

“Our team is executing well, driving improved operating margins and leverage, supported by continued disciplined cost management and inventory optimization,” Avnet CEO Phil Gallagher said in the company’s earnings statement. “The investments we have made in our capabilities and digital infrastructure are paying off. We see the momentum building in our business, indicative of broadening strength across all regions in our core markets. Avnet is well-positioned to drive profitable growth and expect to continue progressing toward our prior peak margin levels.”