Why Avnet (AVT) Is Up 23.2% After Completing $886 Million Buyback And Issuing EPS Guidance

• In late January 2026, Avnet, Inc. reported fiscal second-quarter 2026 results showing higher sales of US$6,318.96 million but lower net income of US$61.73 million versus the prior year, and issued guidance for third-quarter GAAP diluted EPS between US$0.95 and US$1.15.
• The company also confirmed it has completed a US$886 million share repurchase program launched in 2022, retiring 18,525,241 shares, which signals a sustained focus on capital returns alongside operational efficiencies and growth in regions such as Asia.
• We’ll now examine how Avnet’s completed US$886 million buyback and upbeat earnings guidance shape the company’s broader investment narrative.

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What Is Avnet's Investment Narrative?

For Avnet, you really have to believe in a low-margin, scale electronics distributor that can turn volume, inventory discipline and capital returns into acceptable shareholder outcomes. The latest quarter fits that story only partly: sales rose to US$6,318.96 million but net income and margins stayed compressed, and a large one off loss still clouds the trailing numbers. At the same time, Q3 EPS guidance of US$0.95 to US$1.15 and strong recent price gains suggest investors see the earnings dip as manageable rather than structural, at least for now. The completed US$886 million buyback, on top of a growing dividend, tightens the share base and reinforces capital return as a core pillar, but also amplifies balance sheet and interest coverage risk if profitability does not improve.

However, investors also need to weigh how thin margins and interest coverage could limit flexibility. Avnet's shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.

Exploring Other Perspectives

Three Simply Wall St Community fair values span from about US$0.53 to US$64, underlining how differently people see Avnet. Against that backdrop, the recent buyback completion and still thin margins give plenty of room for debate about how durable any earnings recovery might be.

Explore 3 other fair value estimates on Avnet - why the stock might be worth as much as $64.00!

Build Your Own Avnet Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avnet research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Avnet research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avnet's overall financial health at a glance.

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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.

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