Insight Enterprises, Inc.

What they do

Insight sells hardware, software, and services, including cloud solutions, to business and government clients. The company operates in three geographic segments: North America (81% of 2025 net sales), EMEA (16%), and APAC (3%). Its offerings range from product resale to consulting, managed services, and AI/cloud solutions, with a growing emphasis on higher-margin services.

Revenue drivers

• North America — Largest segment, generating $1.9 billion in Q2 2026 net sales (15% YoY growth), driven by hardware and services growth.
• Services (including cloud) — Services net sales grew 21% YoY in Q2 2026; cloud gross profit grew 39% and Insight Core services gross profit grew 21%, contributing to margin expansion.
• Hardware products — Hardware net sales increased 21% YoY in Q2 2026, with overall product net sales up 13%, reflecting AI-infrastructure demand.
• EMEA and APAC — EMEA net sales grew 8% YoY to $375.2 million in Q2 2026; APAC grew 46% to $85.6 million, with gross margin of 35.6%.

Recent performance

In Q2 2026, consolidated net sales rose 15% YoY to $2.4 billion, and gross profit increased 18% to $521.6 million, with gross margin expanding 60 bps to 21.7%. Earnings from operations grew 51% to $131.0 million, and net earnings increased 65% to $77.6 million, with diluted EPS of $2.57 (up 76% YoY). Adjusted EBITDA rose 29% to $190.4 million, and adjusted diluted EPS grew 44% to $3.86. For fiscal 2025, annual revenue was $8.25 billion with net income of $157.3 million, reflecting a downturn from prior years.

Strategy

Management is focused on growing cloud, infrastructure, and services, driven by AI demand. Recent acquisitions (2023-2025) include Amdaris, SADA (Google Cloud), Infocenter (ServiceNow), New World Tech, Inspire11 (data/AI), and Sekuro (cybersecurity in APAC) to expand technical capabilities and geographic reach. The company continues to emphasize higher-margin services and solutions, expecting gross margin expansion to persist. They aim to leverage global scale and e-commerce experience to meet client digital transformation needs.

Risks

• Intense competition — The IT industry is highly competitive with aggressive pricing pressure, and manufacturers often sell directly to customers, potentially reducing Insight's sales and profitability.
• Cloud disruption — Cloud-based solutions developed by vendor partners may be marketed directly to customers, bypassing resellers like Insight and reducing volume of hardware, software, or services sold.
• Dependence on vendor partners — Insight relies on innovations from its manufacturer and publisher partners and the ability to partner with new technology providers; failure to do so could harm its business.
• Integration risk from acquisitions — The company has made multiple recent acquisitions; failure to integrate them effectively could lead to additional expenses and operational challenges.

Outlook

Management raised full-year guidance after strong Q2 2026 results, citing AI momentum driving growth in cloud, infrastructure, and services. They expect gross margin expansion to continue as services mix increases, and anticipate that transformation costs will not recur in the longer term. While interest rates are expected to moderately decrease, they expect higher-than-historical rates to persist in 2026.