Avnet delivered a solid Q2 FY2026, with revenue of $6.318B, marking a 12% year-over-year increase and a 7% sequential uptick. The company achieved a blended operating margin of 2.7% (EC 3.2% and Farnell 4.7%), and generated free cash flow of $192.9M, supported by robust operating cash flow of $208.2M. Asia remained the regional growth engine, surpassing $3B in quarterly sales and driving the company’s double-digit YoY growth; Europe showed signs of recovery, and The Americas posted solid sequential and YoY gains. Avnet guided 2026 revenue of $6.2–$6.5B and EPS of $1.20–$1.30, signaling continued operating leverage as higher-margin Western regions stabilize and inventories are reduced. Management emphasized supply-chain optimization, backlog visibility, and margin expansion through IP&E and board-component mix, while noting potential near-term pricing pressure from spot-market increases in memory, storage, and related components. The risk is the persistence of macro volatility, episodic pricing shifts, and the Lunar New Year impact on Asia volumes. Overall, the quarter reinforces Avnet’s strategic positioning to capture data-center and AI-driven demand in Asia and to accelerate margin expansion via Farnell and IP&E initiatives, though the path to double-digit margins remains contingent on mix advancement and sustained demand stabilization.