Insight Enterprises, Inc. Reports First Quarter Results
Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended March 31, 2026. Highlights include: Consolidated net sales increased 1% year over y...
CHANDLER, Ariz.: Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended March 31, 2026. Highlights include:
- Consolidated net sales increased 1% year over year
- Gross profit increased 14% year over year to $462.2 million and gross margin expanded 240 basis points to 21.7%
- Consolidated net earnings increased more than 100% year over year to $30.0 million
- Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) increased 27% year over year to $152.0 million
- Diluted earnings per share of $0.97 increased more than 100% year over year
- Adjusted diluted earnings per share of $2.88 increased 26% year over year
- Cash flows provided by operating activities were $32.4 million
In the first quarter of 2026, net sales increased 1%, year over year, to $2.1 billion, and gross profit increased 14%, year over year, to $462.2 million. Gross margin expanded 240 basis points compared to the first quarter of 2025 to 21.7%. Selling and administrative expenses increased 13%, year to year, while Adjusted selling and administrative expenses increased 9%, year to year. Earnings from operations of $71.7 million, or 3.4% of net sales, increased 19% compared to $60.1 million in the first quarter of 2025. Adjusted earnings from operations of $141.1 million, or 6.6% of net sales, increased 27% year over year compared to $111.2 million in the first quarter of 2025. Consolidated net earnings were $30.0 million, or 1.4% of net sales, in the first quarter of 2026, up more than 100% compared to the first quarter of 2025. Adjusted consolidated net earnings were $88.9 million, or 4.2% of net sales, up 18% compared to the first quarter of 2025. Diluted earnings per share for the quarter was $0.97, up more than 100% year over year, and Adjusted diluted earnings per share was $2.88, up 26% year over year.
“In the first quarter, we delivered double-digit gross profit growth across every geography, as well as double-digit adjusted earnings from operations and adjusted diluted earnings per share growth. Total gross profit grew 14% with Cloud gross profit increasing 35% and Core Services gross profit growing 19%, the two critical priority areas of our strategy.” stated Jack Azagury, President and Chief Executive Officer. “The team has built a truly differentiated set of capabilities across hardware, software and services to deliver compelling solutions to our clients. I am excited to continue our transformation to become the leading Solutions Integrator and build upon this strong foundation.” Azagury added.
KEY HIGHLIGHTS
Results for the Quarter:
- Consolidated net sales for the first quarter of 2026 of $2.1 billion increased 1%, year over year, when compared to the first quarter of 2025. Product net sales decreased 2%, year to year, and services net sales increased 17%, year over year. Software product net sales decreased 21%, year to year, while hardware product net sales increased 7%, year over year.
- Net sales in North America decreased 1%, year to year, to $1.7 billion;
- Product net sales decreased 4%, year to year, to $1.3 billion;
- Services net sales increased 12%, year over year, to $333.8 million;
- Net sales in EMEA increased 9%, year over year, to $372.9 million; and
- Net sales in APAC increased 20%, year over year, to $72.3 million.
- Net sales in North America decreased 1%, year to year, to $1.7 billion;
- Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 1%, year to year, with a decrease in net sales in North America of 1% year to year, partially offset by an increase in net sales in APAC of 11%, year over year. Net sales in EMEA was relatively flat year to year.
- Consolidated gross profit increased 14% compared to the first quarter of 2025 to $462.2 million, with consolidated gross margin expanding 240 basis points to 21.7% of net sales. Product gross profit increased 2%, year over year, and services gross profit increased 23%, year over year. Cloud gross profit increased 35%, year over year, and Insight Core services gross profit increased 19%, year over year. By segment, gross profit:
- increased 11% in North America, year over year, to $353.3 million (21.0% gross margin);
- increased 21% in EMEA, year over year, to $86.8 million (23.3% gross margin); and
- increased 46% in APAC, year over year, to $22.0 million (30.4% gross margin).
- Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 11%, year over year, with gross profit growth in APAC, EMEA and North America of 35%, 11% and 10%, respectively, year over year.
- Consolidated earnings from operations increased 19% compared to the first quarter of 2025 to $71.7 million, or 3.4% of net sales. By segment, earnings from operations:
- increased 30% in North America, year over year, to $66.2 million, or 3.9% of net sales;
- increased 32% in EMEA, year over year, to $6.6 million, or 1.8% of net sales; and
- decreased more than 100% in APAC, year to year, resulting in a net loss of $1.1 million, or (1.5)% of net sales.
- Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 17%, year over year, with increases in earnings from operations in North America and EMEA of 29% and 22%, respectively, year over year, partially offset by a decrease in APAC of 125% year to year.
- Adjusted earnings from operations increased 27% compared to the first quarter of 2025 to $141.1 million, or 6.6% of net sales. By segment, Adjusted earnings from operations:
- increased 30% in North America, year over year, to $122.4 million, or 7.3% of net sales;
- increased 17% in EMEA, year over year, to $14.8 million, or 4.0% of net sales; and
- decreased 16% in APAC, year to year, to $4.0 million, or 5.5% of net sales.
- Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations increased 25%, with increases in Adjusted earnings from operations in North America and EMEA of 29% and 9%, respectively, year over year, partially offset by a decrease in APAC of 21% year to year.
- Consolidated net earnings and diluted earnings per share for the first quarter of 2026 were $30.0 million and $0.97, respectively, at an effective tax rate of 39.4%.
- Adjusted consolidated net earnings and Adjusted diluted earnings per share for the first quarter of 2026 were $88.9 million and $2.88, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 25%, year over year.
In discussing financial results for the three months ended March 31, 2026 and 2025 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See “Use of Non-GAAP Financial Measures” for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.
In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis excluding the effects of fluctuating foreign currency exchange rates. These are also considered to be non-GAAP measures. The Company believes providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding its underlying business and results of operations, consistent with how the Company and its management evaluate the Company’s performance. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.
GUIDANCE
For the full year 2026, we expect Adjusted diluted earnings per share to be between $11.00 to $11.50, with a bias toward the high end of the range. This represents approximately 5% growth at the midpoint compared to the 2025 Adjusted diluted EPS of 10.75. We expect gross profit to grow in the low single digits and expect that our gross margin will be approximately 21.5%.
This outlook assumes:
- interest and other expenses of approximately $90 million;
- an effective tax rate of 25.5% to 26.5% for the full year;
- capital expenditures between approximately $20 million and $30 million;
- an average share count for the full year of approximately 30.0 million shares.
This outlook excludes acquisition-related intangibles amortization expense of approximately $83.4 million, excludes non-cash stock-based compensation expense and assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net, no significant change in our debt instruments, and no significant change in the macroeconomic environment, whether due to tariffs or otherwise. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2026 forecast.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss first quarter 2026 results of operations. A live webcast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the webcast will be available on the Company’s web site for a limited time following the call. To access the live conference call, please register in advance using the event link on the Company's web site. Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call.
USE OF NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings, Adjusted diluted earnings per share and Adjusted selling and administrative expenses exclude (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) impairment losses on long lived real estate assets held for sale, (viii) stock-based compensation expense, and (ix) the tax effects of each of these items, as applicable. Transformation costs represent costs we are incurring to transform our business to help us achieve our strategic objectives including becoming a leading solutions integrator. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted net earnings and Adjusted diluted earnings per share also exclude a net loss on revaluation of warrant settlement liabilities, as applicable. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the period was in excess of $68.32, which was the initial conversion price of our previously outstanding convertible senior notes (the “Convertible Notes”), which matured in February 2025, as applicable. Adjusted EBITDA excludes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses, net, (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs (viii) certain acquisition and integration related expenses, (ix) gains and losses from revaluation of acquisition related earnout liabilities, (x) gains and losses from the revaluation of warrant settlement liabilities, (xi) impairment losses on long lived real estate assets held for sale, and (xii) stock-based compensation expense, as applicable. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) certain third-party data center service outage related expenses and recoveries, (vii) gains and losses from revaluation of acquisition related earnout liabilities, (viii) impairment losses on long lived real estate assets held for sale, (ix) stock-based compensation expense, and (x) the tax effects of each of these items, as applicable.
These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
FINANCIAL SUMMARY TABLE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) | ||||||||||
|
| Three Months Ended | ||||||||
|
|
| 2026 |
|
|
| 2025 |
|
| change |
Insight Enterprises, Inc. |
|
|
|
|
|
| ||||
Net sales: |
|
|
|
|
|
| ||||
Products |
| $ | 1,666,546 |
|
| $ | 1,707,800 |
|
| (2%) |
Services |
| $ | 461,440 |
|
| $ | 395,756 |
|
| 17% |
Total net sales |
| $ | 2,127,986 |
|
| $ | 2,103,556 |
|
| 1% |
Gross profit |
| $ | 462,151 |
|
| $ | 406,477 |
|
| 14% |
Gross margin |
|
| 21.7 | % |
|
| 19.3 | % |
| 240 bps |
Selling and administrative expenses |
| $ | 383,983 |
|
| $ | 339,173 |
|
| 13% |
Severance and restructuring expenses, net |
| $ | 6,485 |
|
| $ | 7,026 |
|
| (8%) |
Acquisition and integration related expenses |
| $ | 1 |
|
| $ | 175 |
|
| (99%) |
Earnings from operations |
| $ | 71,682 |
|
| $ | 60,103 |
|
| 19% |
Net earnings |
| $ | 30,009 |
|
| $ | 7,514 |
|
| > 100% |
Diluted earnings per share |
| $ | 0.97 |
|
| $ | 0.22 |
|
| > 100% |
|
|
|
|
|
|
| ||||
Sales Mix |
|
|
|
|
| ** | ||||
Hardware |
|
| 57 | % |
|
| 54 | % |
| 7% |
Software |
|
| 21 | % |
|
| 27 | % |
| (21%) |
Services |
|
| 22 | % |
|
| 19 | % |
| 17% |
|
|
| 100 | % |
|
| 100 | % |
| 1% |
|
|
|
|
|
|
| ||||
North America |
|
|
|
|
|
| ||||
Net sales: |
|
|
|
|
|
| ||||
Products |
| $ | 1,349,017 |
|
| $ | 1,403,027 |
|
| (4%) |
Services |
| $ | 333,788 |
|
| $ | 297,616 |
|
| 12% |
Total net sales |
| $ | 1,682,805 |
|
| $ | 1,700,643 |
|
| (1%) |
Gross profit |
| $ | 353,326 |
|
| $ | 319,452 |
|
| 11% |
Gross margin |
|
| 21.0 | % |
|
| 18.8 | % |
| 220 bps |
Selling and administrative expenses |
| $ | 282,426 |
|
| $ | 265,381 |
|
| 6% |
Severance and restructuring expenses, net |
| $ | 4,641 |
|
| $ | 3,111 |
|
| 49% |
Acquisition and integration related expenses |
| $ | 61 |
|
| $ | 170 |
|
| (64%) |
Earnings from operations |
| $ | 66,198 |
|
| $ | 50,790 |
|
| 30% |
|
|
|
|
|
|
| ||||
Sales Mix |
|
|
|
|
| ** | ||||
Hardware |
|
| 63 | % |
|
| 59 | % |
| 6% |
Software |
|
| 17 | % |
|
| 23 | % |
| (28%) |
Services |
|
| 20 | % |
|
| 18 | % |
| 12% |
|
| <
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