Core Insights - Avnet reported second-quarter fiscal 2026 results that exceeded the high end of the company's sales and earnings guidance, driven by record revenue in Asia and improved demand across multiple end markets [5][7] Financial Performance - Adjusted operating income was $172 million with a total adjusted operating margin of 2.7% [1] - Sales reached $6.3 billion, representing a 12% year-over-year increase and a 7% sequential increase, surpassing guidance [3][7] - Adjusted diluted earnings per share (EPS) were $1.05, exceeding the high end of guidance for the quarter [7] - Gross margin was reported at 10.5%, described as "flattish" year-over-year and slightly up sequentially [2] Segment Performance - Electronic components generated an operating income of $187 million with a 3.2% operating margin, while Farnell produced an operating income of $20 million with a 4.7% operating margin, the latter being the highest since fiscal 2023 [1][4] - Farnell's gross margins improved by over 100 basis points year-over-year but decreased by 25 basis points sequentially [2] Regional Highlights - Asia sales exceeded $3 billion, marking the sixth consecutive quarter of year-over-year growth and now account for over 50% of total sales [3][12] - Sales in Europe increased year-over-year and sequentially, with clear signs of recovery noted [13] - The Americas also saw sales growth for the second consecutive quarter, led by aerospace and defense [14] Demand and Supply Chain Dynamics - Demand signals are resetting higher, particularly driven by data center and AI demand, with lead times trending upward across most product categories [9][10] - The pricing environment remained stable, although spot price increases were noted in some areas, indicating potential upward pricing pressure as supply tightens [11] Working Capital and Inventory Management - Working capital improved with inventory reduced by $126 million, resulting in 86 days of inventory at quarter-end [6][18] - The company aims to reduce total inventory days to below 80 [18] Guidance and Outlook - For Q3 fiscal 2026, sales are guided to be between $6.2 billion and $6.5 billion, with diluted EPS expected to be between $1.20 and $1.30, implying modest sequential growth [20][21] - The guidance reflects anticipated growth in the Americas and EMEA, with a slight seasonal decline in Asia due to the Lunar New Year [21]

Core Insights - Bridge Alliance has welcomed du as its first member operator in the UAE, enhancing collaboration on IoT business and knowledge sharing [1][4] - The partnership aims to leverage du's 5G-Advanced capabilities and Bridge Alliance's IoT expertise to drive innovation and expand market presence [2][5] Group 1: Membership Benefits - Key benefits of du's membership include global reach, IoT synergies for collaborative innovation, and enhanced market presence for both organizations [3] - The collaboration will provide opportunities to co-create solutions with global technology leaders and offer platform-based connectivity across various business verticals [3] Group 2: Strategic Impact - Bridge Alliance's extensive footprint in Asia Pacific will strengthen du's IoT offerings, while du's membership will unlock new IoT opportunities for Bridge Alliance in the UAE [4] - This addition significantly expands Bridge Alliance's presence in the Middle East, complementing existing partnerships in Bahrain, Kuwait, and Saudi Arabia [4] Group 3: Leadership Perspectives - du's Chief Commercial Officer highlighted that joining Bridge Alliance is a milestone for global expansion and innovation, enabling enhanced IoT solutions through collaboration with over 35 telecom operators [5] - The CEO of Bridge Alliance expressed excitement about du's innovative approach and strong market presence, emphasizing the potential for accelerated IoT innovation [5]