1. How is AI and automation impacting forecasting, pricing and inventory management in your organization?

AI is transforming the distributor-customer relationship from a transactional to a collaborative one. Engineers use AI-powered design tools to simulate and validate components before purchase, while procurement teams leverage intelligent platforms to assess risk, compare alternatives and automate routine tasks. At DigiKey, we’re building capabilities that allow customers to interact with us more intuitively, whether through chatbots, smart search or embedded design support. We are still in the early stages, with hype exceeding reality, but given the pace of innovation in this space, the ROI crossover is within sight.

2. How are customer expectations changing, and how is your company differentiating through service or digital capabilities?

Customers today expect more than just availability; they want predictability, transparency and speed. We’re seeing a shift toward localized sourcing strategies and diversified supply chains to mitigate risk. At DigiKey, we’ve responded by enhancing our logistics capabilities and investing in tools that provide us with better visibility into inventory and lead times to inform our stocking level decisions. 

The DigiKey difference is also evident in our inventory pipeline, in-stock product availability, competitive pricing, localization, and top-notch quality service to enhance the customer experience. Our industry-leading product range gives customers unparalleled visibility and access to the latest technologies across semiconductors, power, connectivity, automation and more. As a result, designers can quickly evaluate options, compare specifications and make informed choices without being locked into a single vendor or constrained by limited local availability

3. Where do you see the most promising growth opportunities across end markets or regions?

At DigiKey, we anticipate significant expansion in industrial automation, data centers, AI, robotics, humanoids, EVs, autonomous systems, the maker space, and aerospace and defense. We expect revenue growth across all business units, led by industrial automation. We believe the industry will be stronger in all regions in 2026, with DigiKey outperforming the broader market.

4. What is the most significant market shift you’re seeing in electronic component distribution in 2026?

The most significant shift we’re seeing in the industry this year is the continued rise of AI driven, intelligence led operations across the entire value chain. Customers still expect high service, speed, and accuracy, but they are no longer willing to absorb the cost of manual inefficiencies. In response, distributors are embedding AI into core workflows to improve demand forecasting, inventory optimization, pricing decisions, and customer engagement. At DigiKey, this isn’t about isolated projects; it's about building a connected intelligence network that spans the organization. By integrating AI as an augmentation to our team members’ expertise, we’re able to make better, faster, and more informed decisions that serve both customers and suppliers more effectively, redefining what true high distribution value looks like in 2026.

5. How are geopolitical tensions, trade policy changes and tariffs influencing your sourcing and regional strategies?

DigiKey has invested in our regional Marketplace options to leverage a customer’s location to avoid tariffs and other geopolitical issues that may cause higher costs or delays, and we continue to explore additional options to provide customers with more choices in their regions.

6. What capital or investment priorities are shaping your company’s growth strategy?

Our continued investment in a high-value customer experience sets us apart from others in the industry. Our investments in web experience, export compliance, automation, inventory depth and breadth, new product introductions, localization and price competitiveness have driven increased revenue, customer count and website traffic. We are investing to ensure customers come to us at the start of their next design, and our NPI pipeline is a key part of that strategy.

7. What are the biggest operational challenges you’re working to overcome right now?

We always keep in mind that challenges could arise in many ways, including economic factors such as inflation, global events, tariffs or changes in supply chain dynamics. We keep the pace of demand change at the forefront, as rapid fluctuations in demand can put significant pressure on lead times and availability. However, this is precisely where our business model excels, and our real-time intelligence is designed to protect our customers.