Financial Analysis

6. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in, various lawsuits, claims, investigations, and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Companys financial condition, liquidity, or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations. For certain of these matters, it is not possible to determine the ultimate outcome, and the Company cannot reasonably estimate the maximum potential exposure or the range of possible loss, particularly regarding matters in early stages. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Companys financial position or liquidity but could possibly be material to its results of operations in any single reporting period. As of December 27, 2025, and June 28, 2025, the Company had aggregate estimated liabilities of $7.6 million and $9.6 million, respectively, classified within accrued expenses and other for such compliance-related matters that were both probable and estimable as of such dates. Contingent Liability for Mexico Consumption Tax Audit The Companys facilities in Mexico operate under the IMM …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

4. Debt Short-term debt consists of the following (carrying balances in thousands): December 27, June 28, December 27, June 28, 2025 2025 2025 2025 Interest Rate Carrying Balance Accounts receivable securitization program (due December 2026) 4.57 % $ 288,700 Term loan - current portion 4.20 % 91,237 Other short-term debt 4.58 % 5.17 % 83,661 87,284 Short-term debt $ 463,598 $ 87,284 The Company has a trade accounts receivable securitization program (the Securitization Program) in the United States with a group of financial institutions, which is due in December 2026. The Securitization Program allows the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings of up to $500 million. The Securitization Program does not qualify for off balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within Receivables in the consolidated balance sheets, totaled $982.4 million and $813.9 million at December 27, 2025, and June 28, 2025, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. Other short- …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

3. Goodwill The following table presents the change in goodwill by reportable segment for the first six months of fiscal 2026. Electronic Components Farnell Total (Thousands) Carrying value at June 28, 2025 (1) $ 309,738 $ 527,293 $ 837,031 Foreign currency translation (1,152) (9,397) (10,549) Carrying value at December 27, 2025 (1) $ 308,586 $ 517,896 $ 826,482 (1) Includes accumulated impairments of $1,482,677 from prior fiscal years. …

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7 . Income taxes The below discussion of the effective tax rate for the periods presented in the consolidated statements of operations is in comparison to the 21% U.S. statutory federal income tax rate. The Companys effective tax rate on its income before taxes was 31.3% in the second quarter of fiscal 2026. During the second quarter of fiscal 2026, the Companys effective tax rate was unfavorably impacted primarily by (i) increases to valuation allowances, and (ii) increases to unrecognized tax benefit reserves net of settlements. During the second quarter of fiscal 2025, the Companys effective tax rate on its income before taxes was 3.4%. During the second quarter of fiscal 2025, the Companys effective tax rate was favorably impacted primarily by increases in tax attribute carryforwards. For the first six months of fiscal 2026, the Companys effective tax rate on its income before taxes was 31.9%. The effective tax rate for the first six months of fiscal 2026 was unfavorably impacted primarily by (i) the effect of changes in tax rates enacted in foreign jurisdictions, (ii) increases to valuation allowances, and (iii) increases to unrecognized tax benefit reserves net of settlements. During the first six months of fiscal 2025, the Companys effective tax rate on its income before taxes was 11.4%. The effective tax rate for the first six months of fiscal 2025 was favorably impacted primarily by (i) increases in tax attribute carryforwards, partially offset by (ii) the mix of inc …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently adopted accounting pronouncements In November 2024, the FASB issued ASU 2024-04, DebtDebt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments (ASU No. 2024-04), which clarifies the requirements for determining whether certain settlements of convertible debt should be accounted for as an induced conversion. The ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted and should be applied on a prospective basis, although retrospective application is permitted. The Company early adopted this accounting standard at the beginning of fiscal 2026, which had no impact on the consolidated financial statements. Recently issued accounting pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Tax Disclosures (ASU No. 2023-09), which updates income tax disclosures related to the effective income tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU No. 2023-09 is effective for the Company in fiscal year 2026 and will be adopted in its 2026 fiscal year Form 10-K on a prospective basis. Adoption of this new standard will result in increased disclosures in the Companys fiscal 2026 Form 10-K. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggre …

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8. Pension plan The Company has a noncontributory defined benefit pension plan that covers substantially all current and some former U.S. employees (the Plan). Components of net periodic pension cost for the Plan were as follows: Second Quarters Ended Six Months Ended December 27, December 28, December 27, December 28, 2025 2024 2025 2024 (Thousands) Service cost within selling, general and administrative expenses $ 2,719 $ 2,870 $ 5,437 $ 5,740 Interest cost 5,741 6,183 11,483 12,366 Expected return on plan assets (10,553) (10,439) (21,106) (20,877) Recognized net actuarial loss and other 2,841 1,287 5,682 2,573 Total net periodic pension benefit within other income (expense), net (1,971) (2,969) (3,941) (5,938) Net periodic pension cost (benefit) $ 748 $ (99) $ 1,496 $ (198) The Company made $4.0 million of contributions during the first six months of fiscal 2026 and expects to make additional contributions to the Plan of $4.0 million in the remainder of fiscal 2026. …

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13. Restructuring expenses Fiscal 2026 During fiscal 2026, the Company incurred restructuring expenses primarily related to headcount reductions including restructuring actions taken to reduce costs in Farnell and EMEA. The following table presents the activity during the first six months of fiscal 2026 related to the restructuring liabilities established during fiscal 2026: Severance Other Total (Thousands) Fiscal 2026 restructuring expenses $ 7,967 $ 3,133 $ 11,100 Cash payments (5,563) (3,067) (8,630) Other, principally foreign currency translation (11) (2) (13) Balance at December 27, 2025 $ 2,393 $ 64 $ 2,457 Severance expense recorded in the first six months of fiscal 2026 related to the reduction, or planned reduction, of over 100 employees, primarily in business operations and support functions. Of the $11.1 million in restructuring expenses recorded in the first six months of fiscal 2026, $7.4 million related to EC, and $3.7 million related to Farnell. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2026. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

12. Segment information Avnet has two primary operating groups Electronic Components (EC) and Farnell (Farnell). Both operating groups have operations in each of the three major economic regions of the world: (i) the Americas, (ii) EMEA, and (iii) Asia. Each operating group has its own management team, who manage various functions within each operating group. Each operating group also has distinct financial reporting to the executive level, which informs operating decisions, strategic planning, and resource allocation for the Company as a whole. Avnets EC operating group primarily supports high and medium-volume customers. It markets, sells, and distributes electronic components from many of the worlds leading electronic component manufacturers, including semiconductors, IP&E components (interconnect, passive and electromechanical components), and other integrated and embedded components. EC serves a variety of markets ranging from industrial to automotive to defense and aerospace. It offers an array of customer support options throughout the entire product lifecycle, including both turnkey and customized design, supply chain, programming, and logistics services. Avnets Farnell operating group primarily supports lower-volume customers that need electronic components quickly to develop, prototype, and test their products. It distributes a comprehensive portfolio of kits, tools, electronic components, industrial automation components, and test and measurement products to bo …

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9. Shareholders equity Share repurchase program During the second quarter of fiscal 2026, the Company did not repurchase any shares. As of December 27, 2025, the Company had $225.8 million remaining under its share repurchase authorization. Common stock dividend In November 2025, the Companys Board of Directors approved a dividend of $0.35 per common share and dividend payments of $28.5 million were made in December 2025. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing