Avnet is expanding its use of digital commerce tools and artificial intelligence (AI) as a central part of how it sells, services and scales in a recovering global electronics market.
On its fiscal Q2 earnings call, executives at the Phoenix-based technology distributor described how investments in digital platforms, data analytics and AI-driven tools are reshaping how Avnet interacts with customers, manages inventory and supports engineers and manufacturers navigating supply-chain complexity.
CEO Phil Gallagher said digital capabilities are becoming a primary way Avnet differentiates itself in a competitive components market where speed, availability and technical support increasingly influence purchasing decisions.
“We are seeing customers engage with us in a much more digital way,” Gallagher told analysts. “That engagement is allowing us to be more responsive and more precise in how we serve them.”
Avnet sales in Q2
The Phoenix-based technology distributor posted sales of $6.319 billion for its fiscal Q2 ended Dec. 27, up from $5.663 billion a year earlier — an increase of 11.6%.
Net income fell to $61.7 million, or 75 cents per share, from $87.3 million, or 99 cents per share, in the same quarter last year. That marked a 29.3% decline.
For the first six months of its fiscal year, Avnet reported sales of $12.218 billion. That’s an 8.4% increase from $11.268 billion a year earlier. Profits for the six-month period declined to $113.5 million. They decreased 22.4% from $146.2 million the previous year.
While sales improved across regions, particularly in Asia, much of Avnet’s discussion with analysts centered on how customers are using the company’s digital infrastructure to:
- Source components.
- Check availability.
- Manage design cycles.
Executives said engineers and procurement teams are increasingly relying on Avnet’s online tools and data resources earlier in the product design process. That earlier engagement allows Avnet to capture more business over the lifecycle of a project while giving customers faster access to technical documentation, availability data, and alternative parts when shortages arise.
How Avnet is using AI to enhance digital commerce sales
Gallagher said those digital touchpoints are being enhanced with AI-based capabilities. They help Avnet interpret customer behavior, predict demand patterns and recommend part substitutions when supply constraints occur.
“We are using data and AI to anticipate customer needs rather than just respond to orders,” he said.
Avnet is also using AI and automation internally to improve how it manages inventory across its global network. By analyzing historical buying patterns, regional demand signals and supplier lead times, the company is working to position inventory closer to where customers are likely to need it. That helps it to reduce fulfillment times and improve service levels without significantly increasing working capital.
Chief financial officer Ken Jacobson said those tools are helping Avnet manage inventory more precisely as the market transitions out of a prolonged semiconductor downturn.
“Digital and analytics capabilities are allowing us to be more disciplined in how we manage inventory while still supporting customers as demand returns,” Jacobson said.
Ways Avnet seeks to meet customers’ expectations
Executives noted that customers increasingly expect distributor websites to function as engineering and procurement platforms rather than simple ordering portals. Avnet’s investments are aimed at turning its digital channels into destinations for research, design support and purchasing.
That shift is especially important as manufacturers face ongoing uncertainty around component availability, geopolitical trade issues and longer design cycles for industrial, automotive and technology products.
Gallagher said Avnet’s strategy is to embed itself earlier and deeper into customer workflows through digital tools rather than compete solely on price and availability.
“We want to be part of the customer’s design and planning process, not just the fulfillment process,” he said.
The company said rising digital engagement is also generating richer data about customer behavior, which feeds back into its AI models to refine forecasting, pricing and customer support.
As electronics manufacturers resume ordering after a slow period, Avnet executives said digital engagement is rising alongside sales, suggesting customers are becoming more comfortable researching and transacting online rather than relying primarily on traditional sales channels.
For Avnet, executives said, digital commerce and AI are now central to how the company plans to grow as market conditions stabilize.
“Digital and AI are not side projects for us,” Gallagher said. “They are becoming part of how we run the business every day.”
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