EMEA gross profit: up 30% , driven by activity in the UAE and Saudi Arabia where Insight acts as an agent, plus growth in EMEA services.Cloud gross profit: $138 million , up 11% , led by growth in SaaS and infrastructure as a service, partially offset by previously discussed partner program changes.Despite the modest revenue decline, profitability improved. Gross profit increased 9% , and total gross margin expanded to 23.4% , up 220 basis points year-over-year. CEO Joyce Mullen attributed the margin gains ...

Insight Enterprises (NSIT) came out with quarterly earnings of $2.96 per share, beating the Zacks Consensus Estimate of $2.82 per share. This compares to earnings of $2.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.97%. A quarter ago, it was expected that this information technology provider would post earnings of $2.49 per share when it actually produced earnings of $2.43, delivering a surprise of -2.41%.Over the last ...

Insight Enterprises (NasdaqGS:NSIT) Q4 2025 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsJames Morgado - SVP of FinanceJoyce Mullen - CEORyan Miyasato - Director of Investor RelationsConference Call ParticipantsAdam Tindle - Managing Director and Senior Equity Research AnalystJoseph Cardoso - VP and Equity Research AnalystLuke Morrison - Equity Research AnalystVincent Colicchio - Managing Director and Senior Equity Research AnalystOperatorHello, everyone. Thank you for joining us, and wel ...

Financial Data and Key Metrics Changes - Overall revenue for Q4 2025 was $2 billion, a decrease of 1% year-over-year, primarily due to a 4% decline in product revenue, with on-prem software down 18% as clients shifted to cloud solutions [17][21] - Total gross profit increased by 9%, with gross margin expanding to 23.4%, an increase of 220 basis points [19][21] - Adjusted diluted earnings per share were $2.96, up 11%, while adjusted earnings from operations grew by 13% [17][21] Business Line Data and Key Metrics Changes - Cloud gross profit was $138 million, an increase of 11%, driven by growth in SaaS and Infrastructure as a Service [19] - Core services gross profit grew by 16% to $90 million, supported by acquisitions and organic growth [19] - Hardware gross profit increased by 1%, with hardware revenue up 2%, marking the fourth consecutive quarter of growth [19] Market Data and Key Metrics Changes - EMEA region saw a gross profit increase of 30%, driven by demand in UAE and Saudi Arabia [19] - The company reported strong growth in its core services business across all geographies, contributing to overall performance [8][19] Company Strategy and Development Direction - The company aims to simplify complexity for clients and deliver measurable outcomes through integrated solutions, focusing on cloud modernization, security, and AI adoption [18] - Recent acquisitions, including Inspire11 and Sekuro, are expected to enhance technical expertise and cross-sell opportunities [16][21] - The company is positioning itself as a leading AI-first solutions integrator, with a strong emphasis on technology consulting capabilities [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating subdued spending across the industry, particularly from corporate and large enterprise clients [17][18] - The macro environment remains complex, with ongoing supply chain dynamics and memory pricing impacting client investments [17][18] - The company expects to continue investing in cloud and AI areas to capture emerging opportunities [18] Other Important Information - The company increased its share repurchase authorization by $150 million, bringing the total to $299 million at year-end [23] - Total debt at the end of Q4 was approximately $1.4 billion, up from $900 million a year ago, primarily due to acquisitions and share repurchases [23][24] - The company has filed over 200 patent applications globally, with more than 70 patents issued to date, covering innovations in AI and machine learning [15] Q&A Session Summary Question: Guidance for 2026 and IT budgets - Management discussed the cautious approach to 2026 guidance, emphasizing the impact of market uncertainties and past performance on expectations [31][33] - IT budgets for large enterprises are expected to remain subdued, with a focus on preserving funds for AI transition [36][37] Question: Partner program changes impact - The impact of partner program changes was quantified at $70 million for the year, with expectations of a tail effect into 2026 [40][44] Question: AI data center opportunities - Management highlighted the complexity and potential for AI data center investments, indicating a significant growth vector for the business [51][53] Question: Memory cost and supply chain disruptions - Expectations of 10% to 25% increases in PC prices due to memory costs were discussed, along with the potential impact on customer spending [57][58]

Insight Enterprises (NasdaqGS:NSIT) Q4 2025 Earnings call February 05, 2026 09:00 AM ET Speaker5Hello, everyone. Thank you for joining us, and welcome to the Insight Enterprises Q4 2025 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Ryan Miyasato, Director of Investor Relations. Ryan, plea ...

While reporting financial results for the fourth quarter on Thursday, company Insight Enterprises, Inc. (NSIT) initiated its adjusted earnings guidance for the full year 2025.For fiscal 2025, the company now projects adjusted earnings in a range of $10.10 to $10.60 per share. Excluding stock-based compensation expense, adjusted earnings will be in a range of $11.00 to $11.50 per share.On average, five analysts polled expect the company to report earnings of $10.52 per share for the year. Analysts' estimate ...

Insight Enterprises, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call and Webcast This presentation will reference certain non-GAAP financial information as 'Adjusted'. A reconciliation of non-GAAP financial measures presented in this document to our actual GAAP results is attached to the back of this presentation and included in the press release issued today, which you may find on the Investor Relations section of our website at investor.insight.com. These non-GAAP measures are used by the ...

Financial Performance - In Q4 2025, net sales decreased 1% year over year to $2.0 billion, while gross profit increased 9% to $478.4 million, resulting in a gross margin expansion of 220 basis points to 23.4%[1][4]. - For the full year 2025, net sales decreased 5% year over year to $8.2 billion, with gross profit remaining flat at $1.8 billion and gross margin expanding 110 basis points to 21.4%[2][12]. - Consolidated net earnings for Q4 2025 were $52.0 million, up 40% year over year, while full year consolidated net earnings were $157.3 million, down 37% compared to 2024[1][2]. - Adjusted earnings from operations for Q4 2025 increased 13% year over year to $146.2 million, representing 7.1% of net sales[1][4]. - Diluted earnings per share for Q4 2025 was $1.67, up 69% year over year, while for the full year it was $4.86, down 26% year over year[1][2]. - Total net sales for Q4 2025 were $2,048,297, a decrease of 1% compared to Q4 2024's $2,072,665[25]. - Net earnings for the full year 2025 were $157,347, down 37% from $249,691 in 2024[25]. - Diluted earnings per share for Q4 2025 increased by 69% to $1.67, compared to $0.99 in Q4 2024[25]. - Gross profit for Q4 2025 was $478,428, representing a 9% increase from $439,638 in Q4 2024[25]. - Gross profit for the twelve months ended December 31, 2025, was $1,761,427, slightly down from $1,766,016 in 2024, reflecting a stable performance[35]. - Net earnings for the twelve months ended December 31, 2025, were $157,347, down from $249,691 in 2024, indicating a decline of 37%[35]. - Adjusted non-GAAP consolidated net earnings for 2025 were $315,104 thousand, slightly down from $338,181 thousand in 2024, reflecting a decrease of 6.8%[41]. - GAAP consolidated earnings from operations (EFO) for 2025 were $334,923 thousand, down from $388,584 thousand in 2024, a decline of 13.8%[41]. - Adjusted non-GAAP consolidated EFO for the twelve months ended December 31, 2025, was $503,988 million, compared to $502,372 million in 2024, showing a slight increase[50]. Cash Flow and Expenses - Cash flows from operating activities were $153.8 million for Q4 2025 and $303.8 million for the full year[4]. - Cash flows from operating activities provided $303,827 thousand in 2025, a significant decrease of 52.1% from $632,845 thousand in 2024[39]. - Selling and administrative expenses for the three months ended December 31, 2025, were $361,412, a slight increase from $358,487 in 2024[35]. - Severance and restructuring expenses for Q4 2025 increased by 33% to $21,310 compared to $15,967 in Q4 2024[25]. - Severance and restructuring expenses increased to $37,131 million in 2025 from $31,605 million in 2024[50]. - Transformation costs decreased to $13,083 million in 2025 from $18,355 million in 2024[50]. Market Segments and Regional Performance - In Q4 2025, services net sales increased 11% year over year, while product net sales decreased 4%[8]. - North America net sales decreased 3% year over year to $1.6 billion in Q4 2025, while EMEA and APAC saw increases of 8% and 15%, respectively[8]. - The company is focusing on expanding its services segment, which has shown growth potential, particularly in the APAC region[35]. - GAAP EFO from North America segment for Q4 2025 was $79.129 million, up from $52.396 million in Q4 2024, representing a growth of 50.9%[43]. - GAAP EFO from APAC segment for Q4 2025 was $5.776 million, an increase from $4.922 million in Q4 2024, reflecting a growth of 17.4%[45]. - Adjusted non-GAAP EFO from EMEA segment for Q4 2025 was $20.720 million, compared to $14.626 million in Q4 2024, an increase of 41.7%[45]. Future Outlook - For 2026, the company expects Adjusted diluted earnings per share to be between $10.10 and $10.60, representing a 5% growth at the midpoint compared to 2025[14]. - The company anticipates gross profit growth in the low single digits and expects gross margin to be approximately 21% for 2026[14]. - The company experienced a net cash used in investing activities of $309,803 thousand in 2025, slightly higher than $303,278 thousand in 2024[39]. - The company anticipates continued challenges due to inflation and higher interest rates affecting future financial performance[29]. Balance Sheet and Capital Structure - Total current assets increased to $6,362,387 thousand in 2025 from $4,844,622 thousand in 2024, representing a growth of 31.3%[37]. - The company reported an increase in accounts payable to $4,263,796 thousand in 2025, up from $3,059,667 thousand in 2024, indicating a rise of 39.3%[37]. - Long-term debt rose to $1,361,327 thousand in 2025, compared to $531,233 thousand in 2024, marking an increase of 156.0%[37]. - The cash, cash equivalents, and restricted cash at the end of the period increased to $360,776 thousand in 2025 from $261,467 thousand in 2024, a growth of 37.9%[39]. - Average stockholders' equity decreased to $1,639,329 million in 2025 from $1,775,136 million in 2024[50]. - Average debt increased significantly to $1,180,854 million in 2025 from $953,619 million in 2024[50]. - Average cash position worsened, with a negative average cash of $(359,051) million in 2025 compared to $(296,166) million in 2024[50]. - Total invested capital increased to $2,461,132 million in 2025 from $2,432,589 million in 2024[50]. - Income tax expense for the twelve months ended December 31, 2025, was $131,037 million, slightly up from $130,617 million in 2024[50].

Group 1 - Insight Enterprises Inc. has amended its asset-based lending credit agreement, increasing its credit facility from $1.8 billion to $2 billion, with $1.65 billion available to US borrowers and $350 million available in multiple currencies [2][3] - The maturity of the credit facility has been extended to December 19, 2030, providing the company with enhanced financial flexibility to finance operations and support international growth [2][3] - The company's board has approved a $299 million stock repurchase program, which includes $149 million carried over from the prior authorization [3] Group 2 - Cannaccord analyst Luke Morrison initiated coverage of Insight Enterprises with a Hold rating and a price target of $100, while the average price target from three Wall Street analysts is $103.33, indicating a potential upside of 29.53% from current levels [4] - Insight Enterprises is recognized as a global IT solutions provider, offering services such as cloud, data/AI, cybersecurity, and managed IT to help businesses with digital transformation [5]

Summary of J.P. Morgan's Hardware & Networking Sector Outlook Industry Overview - The report focuses on the **Hardware & Networking** sector, particularly the impact of **AI** on company performance and market dynamics leading into **2026** [1][38]. - The sector has experienced a **multi-year outperformance**, particularly driven by AI tailwinds starting in **2024** and continuing into **2025** [39]. Core Insights 1. **AI Valuation Premiums**: - The average AI company is trading at a **26% premium** to its historical multiples, indicating conservative investor expectations of **26% medium-term earnings growth** driven by AI [2][57]. - Initial outlooks suggest potential earnings growth acceleration of **60%-80%**, significantly higher than what is currently priced in [5][58]. 2. **Earnings Growth Expectations**: - Earnings acceleration of **60%-80%** is not fully reflected in current valuations, with investors pricing in only a **30% sustainable capex growth** [5][65]. - AI revenue exposure for average AI-levered suppliers is expected to rise from **27% in 2024** to **48% in 2027** [6][66]. 3. **Market Performance**: - The sector's share price performance has been significantly influenced by AI, with **AI companies outperforming non-AI companies** in both **2024** and **2025** [47]. - In **2024**, AI stocks saw a **73% increase** in share prices, with a **27% re-rating** contributing to this performance [10]. 4. **Investment Recommendations**: - Top picks for **2026** include **Arista (ANET)**, **Amphenol (APH)**, and **Celestica (CLS)**, with a focus on companies that leverage AI for growth [8][19][20]. - **Arista** is highlighted for its strong position in networking growth, while **Amphenol** benefits from increased fiber adoption in data centers [19][20]. 5. **Concerns and Risks**: - Investor skepticism regarding AI capex sustainability may limit valuation multiple re-rating, but earnings momentum is expected to drive share price outcomes [7][9]. - The report expresses caution regarding non-AI and cyclical companies, which may struggle due to prioritization of AI spending and supply chain constraints [16][17]. Additional Insights - **Capex Growth**: The report anticipates **52% capex growth** for AI companies in **2026**, driven by robust data center announcements from hyperscalers [11][12]. - **Networking vs. Compute Growth**: There is an expectation that networking growth will catch up to compute growth, with networking becoming a larger beneficiary of AI investments [14][15]. - **Memory Costs**: The impact of rising memory costs is noted, particularly affecting traditional infrastructure, while AI infrastructure is expected to be less price elastic [17][18]. Company Ratings and Price Targets - **Amphenol (APH)**: Overweight, target price **$160.00** by December **2026** [3]. - **Arista (ANET)**: Overweight, target price **$175.00** by December **2026** [3]. - **Hewlett Packard Enterprise (HPE)**: Overweight, target price **$30.00** by December **2026** [3]. - **Ingram Micro (INGM)** and **Insight Enterprises (NSIT)**: Downgraded to Underweight due to unfavorable enterprise spending outlook [17][18]. Conclusion - The Hardware & Networking sector is poised for continued growth driven by AI, with significant earnings upside expected in **2026**. Investors are encouraged to focus on companies with strong AI leverage while remaining cautious about non-AI sectors and potential supply chain challenges.