Financial Performance - Q3 2025 - Net sales reached $126 billion, a 72% year-over-year increase[10] - Gross profit amounted to $870 million, up 29% compared to the previous year[10] - Non-GAAP net income was $169 million, representing a 60% increase year-over-year[10] - Adjusted EBITDA totaled $342 million, a 32% increase from the prior year[10] - Non-GAAP diluted EPS stood at $072, exceeding the guidance midpoint by $005[10] Financial Performance - YTD 2025 - Net sales reached $377 billion, an 88% increase year-over-year[13] - Gross profit was $25 billion, up 11% compared to the same period last year[13] - Non-GAAP net income amounted to $455 million, a 98% increase year-over-year[13] - Adjusted EBITDA totaled $927 million, a 29% increase from the prior year[13] - Non-GAAP diluted EPS stood at $194, up 37% year-over-year[13] Q4 2025 Guidance - The company projects net sales between $14 billion and $1435 billion, indicating year-over-year growth of 49% to 75%[35] - Gross profit is expected to range from $935 million to $990 million[35] - Non-GAAP EPS is projected to be between $085 and $095[35]

Financial Performance - Net sales for the thirteen weeks ended September 27, 2025, were $12,603,755, an increase of 7.1% compared to $11,762,628 for the same period in 2024[15] - Gross profit for the thirty-nine weeks ended September 27, 2025, was $2,537,568, representing a slight increase from $2,508,860 in the prior year[15] - Net income for the thirteen weeks ended September 27, 2025, was $99,457, up 29.1% from $76,969 in the same period last year[15] - Basic earnings per share for the thirty-nine weeks ended September 27, 2025, increased to $0.88 from $0.81 in the prior year, reflecting a growth of 8.6%[15] - For the thirty-nine weeks ended September 27, 2025, total net sales reached $37,678,554, a 9.0% increase from $34,639,001 in the same period of 2024[96] - Net income attributable to common stockholders for the thirty-nine weeks ended September 27, 2025, was $206,472, up from $181,106 in 2024, indicating a growth of approximately 14%[103] Assets and Liabilities - Total assets as of September 27, 2025, were $19,223,913, compared to $18,779,690 as of December 28, 2024, indicating a growth of 2.4%[13] - Total liabilities increased slightly to $15,121,538 as of September 27, 2025, from $15,045,815 at the end of 2024[13] - Retained earnings increased to $1,484,725 as of September 27, 2025, from $1,337,399 at the end of 2024, marking a growth of 11%[13] - Total stockholders' equity increased from $3,463,705 on June 29, 2024, to $3,613,905 on September 28, 2024, representing an increase of approximately 4.3%[21] - Total debt as of September 27, 2025, was $3,795,337, an increase from $3,353,140 on December 28, 2024, representing a 13.2% increase[70] Cash Flow and Expenses - Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $23,878, while cash used in operating activities for the same period in 2025 was $(644,428)[23] - Total cash and cash equivalents at the end of the period on September 28, 2024, were $849,472, down from $802,630 at the end of the period on September 27, 2025, indicating a decrease of approximately 5.5%[24] - Compensation expenses for the thirteen weeks ended September 27, 2025, totaled $415,343, slightly up from $409,833 in the same period of 2024[96] - Interest expense for the thirteen weeks ended September 27, 2025, was $81,720, a decrease from $86,254 in the same period of 2024[98] Market Segments - North America segment net sales were $4,425,888 for the thirteen weeks ended September 27, 2025, up from $4,283,677 in the prior year, reflecting a growth of 3.3%[96] - EMEA segment net sales increased to $3,662,309, a rise of 5.5% from $3,470,507 in the same quarter of 2024[96] - Asia-Pacific segment net sales grew by 12.5% to $3,549,666 compared to $3,153,879 in the prior year[96] - Latin America segment net sales increased to $965,892, up 13.0% from $854,565 in the same quarter of 2024[96] Foreign Currency and Tax - The company reported a foreign currency translation adjustment loss of $32,591 for the thirteen weeks ended September 27, 2025[17] - The company reported a net foreign currency exchange loss of $10,207 for the thirteen weeks ended September 27, 2025, compared to a gain of $10,675 in the prior year[98] - Gross unrecognized tax benefits increased to $16,834 as of September 27, 2025, compared to $15,666 at December 28, 2024[80] - The Brazilian subsidiary faces tax assessments totaling approximately $3,148 related to compliance and transaction-tax matters[87] Strategic Initiatives - The company plans to continue expanding its market presence and integrating new technologies into its platform[11] - The company is focused on maintaining its competitive edge amid market volatility and supply constraints[11] - The company plans to adopt new accounting standards effective after December 15, 2024, which are not expected to materially impact consolidated financial statements[49] Employee and Compensation - The company recognized a compensation expense of $4,048,000 for the thirteen weeks ended September 27, 2025, and $11,637,000 for the thirty-nine weeks ended September 27, 2025[57] - The company had 2,419 non-vested time-vesting restricted stock units with a weighted-average grant date fair value of $20.31[57] - The company had 3,684 non-vested performance-vesting restricted stock units with a weighted-average grant date fair value of $17.91 as of September 27, 2025[58] - The compensation expense for performance-vesting restricted stock units was $1,970,000 for the thirteen weeks ended September 27, 2025, and $3,470,000 for the thirty-nine weeks ended September 27, 2025[58] Restructuring and Costs - Restructuring costs for the thirteen weeks ended September 27, 2025, totaled $3,539, with 226 employees affected in North America and EMEA[74] - For the thirty-nine weeks ended September 27, 2025, total restructuring costs were $5,493, with 296 employees impacted[74] - The remaining restructuring liability of $4,759 is expected to be substantially paid by the third quarter of 2026[75]

Financial Performance - Net sales for Q3 2025 reached $12.6 billion, representing a 7.2% increase compared to $11.8 billion in Q3 2024[5] - Gross profit increased to $869.6 million, with a gross margin of 6.90%, down from 7.19% in the prior year[5] - Net income on a GAAP basis was $99.5 million, or $0.42 per share, while non-GAAP net income was $168.7 million, or $0.72 per share[3] - Net income for the thirteen weeks ended September 27, 2025, was $99,457, representing a 29.1% increase from $76,969 in the same period of 2024[31] - Basic earnings per share for the thirty-nine weeks ended September 27, 2025, were $0.88, up from $0.81 in the prior year, indicating a growth of 8.6%[31] - Adjusted EBITDA for the thirty-nine weeks ended September 27, 2025, was $926,958,000, an increase from $900,573,000 in the prior year, representing a growth of 2.9%[38] - The net income for the thirteen weeks ended September 27, 2025, was $99,457,000, up from $76,969,000 in the same period last year, indicating a year-over-year increase of 29.1%[39] - Adjusted net income for the thirty-nine weeks ended September 27, 2025, was $488,461,000, compared to $506,929,000 in the previous year, showing a decrease of 3.6%[39] Sales by Region - North America net sales were $4.4 billion, a 3.3% year-over-year increase, driven by sales of notebooks and servers[6] - EMEA net sales increased by 5.5% to $3.7 billion, with a positive currency translation impact of 5%[9] - Asia-Pacific net sales grew by 12.5% to $3.5 billion, primarily due to strong demand for client and endpoint solutions[11] - Latin America net sales rose by 13.0% to $1.0 billion, supported by growth in client and endpoint solutions[14] Future Guidance - The company expects Q4 2025 net sales guidance between $14.0 billion and $14.35 billion, with non-GAAP diluted EPS projected between $0.85 and $0.95[17] - The company provided guidance for future performance, emphasizing ongoing market expansion and new product development initiatives[36] Dividends and Shareholder Returns - A quarterly dividend of $0.08 per share was declared, reflecting a 2.6% increase from the previous dividend[18] Assets and Liabilities - Total current assets increased to $16,220,383 as of September 27, 2025, compared to $15,801,177 as of December 28, 2024, marking a growth of 2.6%[29] - Total liabilities stood at $15,121,538 as of September 27, 2025, slightly up from $15,045,815 as of December 28, 2024[29] - The company reported a total stockholders' equity of $4,102,375 as of September 27, 2025, an increase from $3,733,875 as of December 28, 2024[29] Operating Expenses - Operating expenses for the thirteen weeks ended September 27, 2025, were $646,134, compared to $627,318 for the same period in 2024, reflecting an increase of 3.9%[31] Cash Flow and Investments - Cash provided by investing activities was $66,139 million for the thirteen weeks ended September 27, 2025, compared to $29,941 million for the same period in 2024, representing a 121.1% increase[35] - Cash used in operating activities was $(146,038) million for the thirteen weeks ended September 27, 2025, compared to $(277,040) million for the same period in 2024, showing a 47.3% improvement[34] - Capital expenditures for the thirteen weeks ended September 27, 2025, were $(28,968) million, down from $(37,955) million in the same period in 2024, indicating a 23.6% decrease[34] - The company reported a decrease in cash and cash equivalents of $(54,038) million for the thirteen weeks ended September 27, 2025, compared to $(79,290) million for the same period in 2024, reflecting a 31.7% improvement[35] - The company reported cash and cash equivalents at the end of the period of $802,630 million, down from $849,472 million at the end of the same period in 2024[35] Risks and Challenges - The company faces various risks including market volatility, supply constraints, and competition, which could impact future performance[25] Operational Efficiency - Adjusted EBITDA and other non-GAAP financial measures were discussed, highlighting the company's focus on operational efficiency and cost structure alignment[36] - The company continues to focus on expanding its market presence and integrating new technologies into its platform, including the development of Ingram Micro Xvantage™[25] Stockholder Equity and Debt - Stockholders' equity as of September 27, 2025, was $4,102,375,000, an increase from $3,613,905,000 in the previous year[39] - The company’s long-term debt as of September 27, 2025, was $3,059,612,000, a decrease from $3,344,033,000 in the previous year[39] Earnings Per Share (EPS) - GAAP diluted EPS for the thirteen weeks ended September 27, 2025, was $0.42, compared to $0.35 for the same period in 2024, representing a 20% increase[44] - Non-GAAP diluted EPS for the thirty-nine weeks ended September 27, 2025, was $1.94, up from $1.87 in 2024, indicating a 3.74% growth[44] - Amortization of intangibles contributed $0.08 to GAAP EPS for the thirteen weeks ended September 27, 2025, down from $0.10 in 2024[44] - Integration, transition, and operational improvement costs added $0.22 to GAAP EPS for the thirteen weeks ended September 27, 2025, compared to $0.21 in 2024[44] - The tax impact of pre-tax adjustments reduced GAAP EPS by $0.10 for the thirteen weeks ended September 27, 2025, compared to a reduction of $0.13 in 2024[44] - Restructuring costs contributed $0.02 to GAAP EPS for the thirteen weeks ended September 27, 2025, consistent with the previous year[44] - Cash-based compensation expense added $0.02 to GAAP EPS for the thirteen weeks ended September 27, 2025, compared to $0.03 in 2024[44] Currency Impact - The company reported a net foreign currency exchange loss of $0.04 for the thirteen weeks ended September 27, 2025, compared to a gain of $0.05 in 2024[44] Forward-Looking Statements - The company is unable to provide a reconciliation of forward-looking GAAP diluted EPS to non-GAAP diluted EPS for fiscal fourth quarter 2025 due to uncertainties[45] - The forward-looking estimates of both GAAP and non-GAAP measures may differ materially from actual results, indicating potential volatility in future financial performance[45]

Core Insights - Ingram Micro Holding Corporation is preparing for a public offering again, but concerns exist regarding sales declines, thin margins, and increased debt levels [1] Group 1: Company Overview - Ingram Micro operates in a competitive and rapidly changing technology distribution sector [1] Group 2: Financial Performance - The company has experienced sales declines, which raises concerns about its financial health [1] - The margins are described as thin, indicating potential challenges in profitability [1] - Increased debt levels have been noted, which could impact the company's financial stability [1]

Group 1 - Ingram Micro Holding Corporation is highlighted as a promising IPO tech stock, particularly following its strategic partnership with Keepit, a cloud-native data protection provider [1] - The partnership aims to enhance Keepit's market presence in Germany and Switzerland by providing access to its SaaS data protection solutions for value-added resellers, managed service providers, and managed security service providers [2] - Ingram Micro will assist Keepit in marketing, sales, and support in these regions, while also offering flexible purchasing and financing solutions [3] Group 2 - Ingram Micro operates as a distributor of IT products, cloud services, and other offerings across various global regions, including North America, Europe, the Middle East, Africa, Asia-Pacific, and Latin America [4]

Core Perspective - Keepit has entered into a strategic go-to-market agreement with Ingram Micro to enhance its market presence in Germany and Switzerland [1] Company Summary - Keepit is identified as the world's only independent, cloud-native data protection, backup, and recovery provider [1] - The partnership with Ingram Micro aims to intensify the joint go-to-market strategy in the specified markets [1] Industry Summary - The collaboration reflects a growing trend in the technology ecosystem where B2B platform companies are forming strategic alliances to expand market reach [1]

Summary of Key Points from the Conference Call Industry Overview - The conference focuses on the Hardware sector, particularly in the context of AI infrastructure and its impact on data center equipment spending. The demand for AI-related data center equipment is expected to increase significantly, with a projected 54% year-over-year growth in capital expenditures (capex) among the top six cloud providers, reaching $388 billion in 2025 [7][8][10]. Company Insights HP Inc. - HP Inc. is projected to generate $55.1 billion in revenue for fiscal year 2025, reflecting a 3% year-over-year increase. The revenue breakdown is expected to be approximately 70% from the Personal Systems Group and 30% from Printing [29][30]. - The company reported mixed earnings for Q3 2025, with strong PC demand driven by a refresh cycle, but weakness in hardware unit demand and pricing in the Printing segment. This led to a lowered EPS outlook for fiscal year 2025 [30][33]. - Personal Systems demand is bolstered by the Windows 11 refresh and AI PC adoption, with overall PC unit shipments up 5% year-over-year. The company anticipates continued growth in Personal Systems, expecting a 6% year-over-year increase in fiscal Q4 2025 [30][33]. Other Companies - The conference will feature discussions with various companies, including F5, Ingram Micro, NetApp, Axon Enterprise, and Arista Networks, focusing on their respective positions in the hardware and communications technology sectors [4][6]. Key Industry Themes 1. **AI Infrastructure Demand**: The demand for AI infrastructure is expected to grow faster in tier 2 cloud and enterprise sectors compared to hyperscalers, with projected growth rates of 58% and 48% respectively from 2024 to 2028 [12]. 2. **Traditional IT Equipment Recovery**: Traditional enterprise IT equipment is in the early stages of recovery, with server revenue growing by 15% year-over-year in Q1 2025. However, growth is primarily driven by higher average selling prices (ASPs) rather than unit growth [13]. 3. **PC Market Dynamics**: The global PC market is expected to grow by 4% year-over-year in 2025, driven by a refresh cycle and the end of Windows 10 support. HP expects industry unit growth in the second half of 2025 and into 2026 [27][38]. Financial Projections and Risks - HP's financial outlook includes a free cash flow (FCF) of approximately $2.8 billion for fiscal year 2025, with a target to return 100% of FCF to shareholders through dividends and buybacks [29][38]. - Key risks for HP include potential decreases in commercial PC demand due to hybrid work trends, pricing pressures from high channel inventory, and competition in the printing market [36][38]. Management Questions - Questions for management include inquiries about the outlook for PC unit demand, the pace of Windows 11 adoption, and expectations for the commercial print business [37]. This summary encapsulates the critical insights and projections discussed during the conference, highlighting the trends and challenges within the hardware sector, particularly for HP Inc. and its peers.

Core Insights - Ingram Micro reported $12.79 billion in revenue for the quarter ended June 2025, showing no year-over-year change, with an EPS of $0.61 compared to $0 a year ago, indicating a positive earnings surprise [1] - The revenue exceeded the Zacks Consensus Estimate of $11.96 billion by 7%, while the EPS surprise was 1.67% above the consensus estimate of $0.60 [1] Financial Performance - Ingram Micro's shares have returned -6.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change, and the stock currently holds a Zacks Rank 5 (Strong Sell) [3] - The company’s geographic revenue breakdown includes North America at $4.98 billion, Latin America at $853.48 million, Asia-Pacific at $3.48 billion, and EMEA at $3.48 billion, all surpassing analyst estimates [4]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 reached $12.79 billion, reflecting a year-over-year increase of 10.9% in U.S. dollars and 10.2% on an FX neutral basis [19] - Adjusted EBITDA for the quarter was $294 million, up nearly 6% in U.S. dollars and 5% in constant currency [27] - Non-GAAP net income increased to $142 million, an over 18% rise compared to $120 million in 2024 [28] - Non-GAAP diluted EPS was $0.61, up 12% from the prior year [28] Business Line Data and Key Metrics Changes - Client and Endpoint Solutions saw robust growth of nearly 14% on an FX neutral basis, driven by strong demand in desktop, notebook, and smartphone categories [19] - Advanced Solutions experienced mid-single-digit growth, supported by sales in servers, storage, and cybersecurity, particularly in Asia Pacific markets [19] - Cloud business continued to grow, contributing to overall positive performance across all business lines [9][19] Market Data and Key Metrics Changes - North America net sales were $4.98 billion, up 13.8% year-over-year on an FX neutral basis, driven by strong demand in servers, storage, and cybersecurity [22] - Asia Pacific demonstrated the highest net sales growth at 16.2% year-over-year in U.S. dollars, with significant contributions from lower margin mobility device sales [23] - Latin America returned to growth with net sales of $853 million, increasing 0.8% in U.S. dollars and 6.4% in constant currency [24] Company Strategy and Development Direction - The company is focusing on its xVantage platform to streamline operations and enhance customer experiences through AI and automation [12][14] - A strategic divestiture of non-core assets is underway to improve operational effectiveness and concentrate on core strengths [11] - The evolution into a platform company aims to provide a unified marketplace for hardware, software, cloud, and service solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of a ransomware attack in July but confirmed it did not affect Q2 results [5][9] - The company expects continued year-over-year top-line growth in Q3, with guidance reflecting some conservatism due to the cyber incident [31][34] - Management remains optimistic about the platform strategy's impact on the ecosystem and customer problem-solving capabilities [18] Other Important Information - The company ended Q2 with net working capital of $4.6 billion, an increase from $3.9 billion year-over-year, driven by higher sales and investment needs [29] - Adjusted free cash flow was an outflow of $263 million, reflecting investments to grow the business [30] Q&A Session Summary Question: Expectations for endpoint and advanced solutions revenue growth in Q3 - Management expects mid-single-digit growth for client and endpoint solutions, with stronger performance in desktop and notebook categories, while smartphone growth is anticipated to be lower [38][39] Question: Impact of government subsidies on mobility growth in China - Management noted that some growth in mobility was likely influenced by government subsidies, but overall demand has been strong [40][42] Question: Demand pull forward in North America - Management did not observe significant demand pull forward across categories, with some minor effects in desktop and notebook refresh [47] Question: Implications of the recent bill on customer discussions - Management indicated that the impact of the bill is not significant for their business, as public sector sales are a minor part of their overall revenue [49] Question: AI-driven hardware purchases - Management stated that while there is growing interest in AI-driven products, most current refreshes are not AI-driven but rather due to aging systems and Windows end-of-life [74][75] Question: Xvantage's impact on SMB growth - Management confirmed that Xvantage is contributing to growth in the SMB market by shortening sales cycles and enhancing customer engagement [96] Question: Future M&A or divestiture plans - Management remains open to opportunistic M&A but is currently focused on core capabilities and strategic divestitures [99]

Financial Data and Key Metrics Changes - Net sales for Q2 reached $12.79 billion, up 10.9% year over year in U.S. dollars and 10.2% on an FX neutral basis [17] - Adjusted EBITDA was $294 million, an increase of nearly 6% in U.S. dollars and 5% in constant currency [26] - Non-GAAP net income increased to $142 million from $120 million in 2024, representing an over 18% increase in U.S. dollars [27] Business Line Data and Key Metrics Changes - Client and Endpoint Solutions grew nearly 14% on an FX neutral basis, driven by strong demand in desktop, notebook, and smartphone categories [17] - Advanced Solutions saw mid-single digit growth, supported by servers, storage, and cybersecurity, particularly in Asia Pacific markets [17] - Cloud business continued to grow, contributing to overall positive performance across all business lines [7][16] Market Data and Key Metrics Changes - North America net sales were $4.98 billion, up 13.8% year over year on an FX neutral basis, driven by strong growth in servers, storage, and cybersecurity [20] - Asia Pacific demonstrated the highest net sales growth at 16.2% year over year in U.S. dollars, with strong performance in Client and Endpoint Solutions [21] - Latin America returned to growth with net sales of $853 million, increasing 0.8% in U.S. dollars and 6.4% in constant currency [22] Company Strategy and Development Direction - The company is focusing on its xVantage platform to streamline operations and enhance customer experiences through AI and automation [11][12] - Recent divestitures of non-core assets are part of a strategy to improve operational effectiveness and concentrate on core strengths [10] - The evolution into a platform company aims to provide customers with speed, scale, and service, enhancing overall business efficiency [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ransomware attack in July but confirmed it had no impact on Q2 results, emphasizing a strong recovery and operational resilience [4][6] - The company expects continued year-over-year top line growth in Q3, with guidance reflecting some conservatism due to the cyber incident [30][31] - Management remains optimistic about the impact of the platform strategy and the overall business environment moving forward [16] Other Important Information - The company ended Q2 with net working capital of $4.6 billion, an increase from $3.9 billion year over year, driven by higher sales and investment needs [28] - Adjusted free cash flow was an outflow of $263 million, reflecting investments to grow the business [29] - The company announced a 2.6% increase in its quarterly dividend to be paid in Q3 [29] Q&A Session Summary Question: Expectations for endpoint and advanced solutions revenue growth in Q3 - Management expects mid-single digit growth for client and endpoint solutions, with stronger performance in desktop and notebook categories, while smartphone growth is anticipated to be lower [36][38] Question: Impact of government subsidies on mobility growth in China - Management noted that some growth in mobility was likely driven by government subsidies, but overall demand remained strong [39][41] Question: Demand pull forward in North America - Management did not observe significant demand pull forward across categories, with some minor effects in desktop and notebook refresh [46][47] Question: Implications of the recent bill on customer discussions - Management indicated that the impact of the recent bill is not significant for their business, as public sector sales are a minor part of their overall revenue [49][50] Question: Market cycle positioning for various products - Management believes the market is in a mid-cycle phase, with growth observed in storage, server, and networking categories [57] Question: Cash flow dynamics and expectations for the year - Management expects Q3 cash flow to be neutral to slightly negative due to inventory investments, with a positive cash flow anticipated in Q4 as inventory converts to receivables [91][92]