NSIT

Insight Enterprises delivered results for Q2 that surpassed Wall Street’s expectations, with management highlighting robust demand for infrastructure hardware and continued momentum in cloud and core services. CEO Jack Azagury cited over 20% growth in hardware and strong contributions from cloud and services as key drivers. He emphasized that client modernization efforts, particularly around AI-ready infrastructure, fueled broad-based performance. Management also pointed to improved operational leverage and early progress on integrating recent acquisitions as contributing factors to the quarter’s profitability. Is now the time to buy NSIT? Find out in our full research report (it’s free). Revenue: $2.40 billion vs analyst estimates of $2.17 billion (14.7% year-on-year growth, 10.5% beat) Adjusted EPS: $3.86 vs analyst estimates of $2.93 (31.8% beat) Adjusted EBITDA: $190.4 million vs analyst estimates of $150.3 million (7.9% margin, 26.7% beat) Management raised its full-year Adjusted EPS guidance to $12.45 at the midpoint, a 10.7% increase Operating Margin: 5.5%, up from 4.1% in the same quarter last year Market Capitalization: $4.54 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Joseph Cardoso (JPMorgan) asked about balancing operational efficiency with increased investment, to which CEO Jack Azagury replied that operating leverage will be managed by reinvesting cost savings into growth areas without compromising margins. Cardoso (JPMorgan) followed up on the implied deceleration in second-half profit growth, with CFO James Morgado confirming that tougher year-over-year comparisons and macroeconomic uncertainty warranted a more cautious outlook for Q4. Adam Tindle (Raymond James) questioned the timeline and margin impact of integrating decentralized operations under One Insight, and Azagury responded that culture, global systems harmonization, and operating model transformation are underway, with no expected margin compromise. Lucas Morison (Canaccord Genuity) probed the durability of hardware growth, especially regarding AI workload repatriation, and Azagury affirmed ongoing server demand as clients shift workloads on-premise for security and performance reasons. Morison (Canaccord Genuity) also inquired about the Microsoft E7 partnership’s monetization, with Azagury highlighting both resale and services opportunities, especially as clients adopt Copilot and Agent 365 for AI deployment. In the coming quarters, StockStory’s analysts will be monitoring (1) the pace of adoption and monetization for Insight’s AI-centric infrastructure and managed security offerings, (2) execution of the One Insight operating model to drive operational efficiency and integration of recent acquisitions, and (3) sustained growth in cloud and core services, especially as the company expands its managed service portfolio. Additionally, our team will track macroeconomic trends and supply chain dynamics that could affect hardware demand. Insight Enterprises currently trades at $154.74, up from $140.28 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Insight Enterprises (NASDAQ:NSIT) and the best and worst performers in the it distribution & solutions industry. IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement. The 7 it distribution & solutions stocks we track reported a stunning Q2. As a group, revenues beat analysts’ consensus estimates by 8.6% while next quarter’s revenue guidance was 10.4% above. While some it distribution & solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.7% since the latest earnings results. With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ:NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology. Insight Enterprises reported revenues of $2.40 billion, up 14.7% year on year. This print exceeded analysts’ expectations by 10.5%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates. Interestingly, the stock is up 10.3% since reporting and currently trades at $154.76. Is now the time to buy Insight Enterprises? Access our full analysis of the earnings results here, it’s free. With a century-long history of adapting to technological evolution, Avnet (NASDAQ:AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components. Avnet reported revenues of $8.30 billion, up 47.7% year on year, outperforming analysts’ expectations by 10.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Avnet delivered the highest guidance raise and fastest revenue growth in the group. The market seems happy with the results as the stock is up 7.2% since reporting. It currently trades at $99.18. Is now the time to buy Avnet? Access our full analysis of the earnings results here, it’s free. Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ:CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services. CDW reported revenues of $6.57 billion, up 10% year on year, exceeding analysts’ expectations by 5.2%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS estimates. As expected, the stock is down 11.4% since the results and currently trades at $136.44. Read our full analysis of CDW’s results here. Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions. TD SYNNEX reported revenues of $19.57 billion, up 31% year on year. This result surpassed analysts’ expectations by 16.6%. Overall, it was an incredible quarter as it also logged a beat of analysts’ EPS estimates. TD SYNNEX achieved the biggest analyst estimate beat among its peers. The stock is down 8.4% since reporting and currently trades at $253.76. Read our full, actionable report on TD SYNNEX here, it’s free. Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ:CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems. Connection reported revenues of $854 million, up 12.4% year on year. This print topped analysts’ expectations by 11.3%. Overall, it was an incredible quarter as it also produced a beat of analysts’ EPS estimates. The stock is flat since reporting and currently trades at $82.30. Read our full, actionable report on Connection here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET President and Chief Executive Officer - Jack Azagury Chief Financial Officer - James Morgado Investor Relations Director - Ryan Miyasato Operator: Hello, everyone. Thank you for joining us, and welcome to the Insight Enterprises Second Quarter 2026 Operating Results. [Operator Instructions] I will now hand the conference over to Ryan Miyasato with Investor Relations. Ryan, please go ahead. Ryan Miyasato: Welcome, everyone, and thank you for joining the Insight Enterprises earnings conference call. Today, we will be discussing the company's operating results for the quarter ended June 30, 2026. I'm Ryan Miyasato, Investor Relations Director of Insight, and joining me is Jack Azagury, President and Chief Executive Officer; and James Morgado, Chief Financial Officer. If you do not have a copy of the earnings release or the accompanying slide presentation that was posted this morning and filed with the Securities and Exchange Commission on Form 8-K, you will find it on our website at insight.com under the Investor Relations section. Today's call, including the question-and-answer period, is being webcast live and can also be accessed via the Investor Relations page of our website at insight.com. An archived copy of the conference call will be available approximately 2 hours after completion of the call and will remain on our website for a limited time. This conference call and the associated webcast contain time-sensitive information that is accurate only as of today, August 6, 2026. This call is the property of Insight Enterprises. Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Insight Enterprises is strictly prohibited. In today's conference call, we will be referring to non-GAAP financial measures as we discuss the second quarter financial results. When discussing non-GAAP measures, we will refer to them as adjusted. You will find a reconciliation of these adjusted measures to our actual GAAP results included in both the press release and the accompanying slide presentation issued earlier today. Please note that all growth comparisons we make on the call today relate to the corresponding period of last year, unless otherwise noted. Also, unless highlighted as constant currency, all amounts and growth rates discussed are in U.S. dollar terms. As a reminder, all forward-looking statements that are made during this conference call are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are discussed in today's press release and in greater detail in our most recently filed periodic reports and subsequent filings with the SEC. All forward-looking statements are made as of the date of this call, and except as required by law, we undertake no obligation to update any forward-looking statements made on this call, whether as a result of new information, future events or otherwise. With that, I will now turn the call over to Jack. Jack? Jack Azagury: Thank you, Ryan. Good morning, everyone, and thank you for joining us. I'm pleased to report another strong quarter for Insight. Building on the momentum we established in the first quarter, we delivered broad-based growth across our business and generated strong operating leverage. As a result, total gross profit grew 18%, while adjusted earnings from operations increased 31% and adjusted diluted earnings per share rose 44%. I'm especially proud of the performance in our key priority areas. Infrastructure hardware revenue rose more than 20%, reflecting strong demand across servers, storage and networking as clients modernize their environments and invest in AI-ready infrastructure. From a gross profit perspective, cloud grew 39% and core services increased 21%. These offerings are closely aligned with our clients' priorities and represent areas where we see significant opportunity to drive sustained growth. These results reinforce 2 important points. First, our strategy to be a solution integrator for the age of AI is resonating with our clients. And second, we are making early progress against the priorities I outlined last quarter, in particular, the need for focus and execution discipline in everything we do. As James will detail in his remarks, we are raising our outlook for both gross profit growth and adjusted diluted earnings per share for the year as a result of this strong momentum. Over the past several months, I've continued spending time with our clients, our teammates and our partners around the world while conducting a comprehensive review of our business and building our 3-year business plan. Those conversations, combined with a deeper understanding of our operations and market position have only strengthened my conviction in the opportunity ahead of us. Our pivot to become the leading solution integrator for the age of AI is working. While there are opportunities to optimize how we operate and continue to build our capabilities, we have a strong foundation to build upon, and we are in a strong position to unlock the value from the investments we have made over the last 10 years. Let me start with what's working well. Our client relationships remain one of our greatest strengths. Many of these relationships have been built over years and in some cases, decades, creating a foundation of trust that enables us to engage at a more strategic level with our clients. This is especially true with our mid-market clients who are turning to Insight to help them deploy and adopt AI in a practical way with a focus on rapid results. A measure of the trust we've earned with our clients is our Net Promoter Score, which has consistently exceeded 60 over the past 3 years. Second, our cloud business continues to perform well. Organizations remain focused on modernizing their environments, optimizing cloud investment and consumption and driving value from AI. Our strong cloud performance, especially with Microsoft and Google, reflects both the relevance of these priorities and the value our teams bring in helping clients accelerate their digital transformation journeys. Third, we are seeing encouraging strong growth in infrastructure and AI-related hardware. This growth is being driven by stronger sales execution, close alignment with client priorities and our ability to help clients navigate supply chain constraints while accelerating investment in modernization and AI-ready infrastructure. Fourth, our partner ecosystem remains a significant competitive advantage. The strength of our relationships with the world's leading technology providers continues to create opportunities for growth and innovation. As an example, we are a global launch partner for Microsoft 365 E7, Microsoft's Frontier Suite. As an early enterprise adopter, we're gaining firsthand experience that helps clients accelerate their own journey to a human-led agent-operated enterprise. We bring the full Microsoft AI stack from Copilot to Agent 365 with security and governance built in, which is especially valuable for mid-market clients seeking enterprise-grade AI capabilities. The strength of our partner ecosystem is reflected in recognitions we continue to receive across the industry. Recently, we earned Partner of the Year awards from HPE, Everpure, Adobe, CrowdStrike, Proofpoint and Rubrik, an endorsement of our technical expertise and leadership in cybersecurity and other strategic growth areas. And we were named a major contender in the Everest Google Cloud Services PEAK Matrix Assessment, recognizing our expertise in the Google Cloud Platform. Finally, our people and culture continue to be a major differentiator, bringing deep technical expertise across our solutions. I have been consistently impressed not only by the depth of our expertise, commitment and passion across our organization, but also by the strength of our culture grounded in collaboration, accountability and shared commitment to our clients. We refer to it as hunger, heart and harmony. As an example that illustrates many of these strengths is our partnership with a health care consulting provider that conducts hundreds of hospital surveys each year. These consultants were spending significant time manually documenting findings and producing accreditation reports. We built an AI-powered solution using OpenAI that transforms survey notes into structured findings and recommendations that fit seamlessly into existing workflows. As a result, the client is realizing more than $400,000 in annual productivity savings, reducing report preparation time from several hours to less than an hour. They're also saving more than 20 hours per week in formatting and quality assurance work and improving consistency across hundreds of reports each year. This example demonstrates how we're helping clients move from AI ambition to realized business value. The differentiator is not access to AI technology itself, but the ability to apply it to real-world business challenges, transform processes and deliver measurable returns. As clients increasingly prioritize outcome-based AI investments, our expertise, delivery capabilities and talent position us well to capture this growing opportunity. While we have a strong foundation, we have also identified several areas where we need to improve. First, part of our business remains too decentralized. Some acquisitions and support functions have not yet been fully integrated into a common operating model, creating complexity, sometimes limiting collaboration and slowing down decision-making. We need a more connected and consistent way of working in order to serve our clients at speed as One Insight all the time, every time. Second, we have not consistently invested in our organic business in several of our most important growth vectors. We believe there is significant opportunity to accelerate investment in AI infrastructure as well as AI services, including engineering, data, cloud and security. These are areas where client demand is growing and where we believe Insight is well positioned to win. Furthermore, we need to continue to invest in our frontline sales and equip our account executives with training and AI tools to represent the full capabilities of Insight. Third, we have opportunities to create greater efficiency through AI-enabled processes and automation. As a technology leader, we are leading by example, in the adoption of AI to improve productivity, decision quality and speed. Our early adoption of Microsoft's Frontier Suite is a great example of this. To address these areas for improvement, we are launching a 3-year business plan, which we call the One Insight plan. The plan is designed to accelerate organic growth, move to One Insight operating model and improve our operating leverage in order to further fuel our business for growth. Combined with favorable market trends in cloud, data, AI and cybersecurity, we believe this strategy will position us to create sustainable long-term value. The plan focuses on 3 pillars, which I'll expand on shortly. First, accelerating investment behind our highest priority growth vectors, AI infrastructure and AI services, including security with a sharpened focus on the mid-market. Second, driving operational excellence; and third, strengthening our talent strategy. These represents the building blocks of the 3-year plan we are currently developing and will be executed over a phased approach. Importantly, this is not simply a future state vision. Work is already underway globally. At the center of everything we do is a simple principle, focus and execution. Let me give you examples of our plan in each of the 3 key pillars. As we drive operational efficiencies across the business, we will reinvest a portion of those savings into 2 strategic growth initiatives that are closely aligned with evolving client demand. AI infrastructure. Organizations are transforming their infrastructure to support AI workloads, data-intensive computing and modern hybrid environments and AI services. This includes engineering services, data and cloud capabilities, security solutions and advisory services designed to help clients move from experimentation to enterprise scale deployments at speed. As we strengthen our investment in these 2 priority areas, we continue to drive operational excellence and execution in other areas, including devices, hardware attached services and overall resale capabilities. A good example of our priority investments is the recent launch of Insight Managed Exposure Defense, IMED in short, a managed security offering designed to help organizations address the growing wave of AI-driven cyber risks. The solution, which we use ourselves as client zero, enables clients to rapidly move from identifying vulnerabilities to strengthening their security posture. In a threat landscape that continues to evolve at unprecedented pace, organizations need a partner that can deliver integrated protection and rapid time to value. We are making these capabilities available in a consumable way as a managed service, making them more accessible to our mid-market clients, including a simple 24-hour quoting process to get started at speed. In just a few weeks since launch, we have seen strong client interest. Within our solutions portfolio, similar to what we've done with IMED, we are improving scalability and repeatability by productizing our top 10 service offerings over the next few months. In addition, in order to drive greater solution selling and cross-selling globally, we are also expanding our AI sales coach capabilities, equipping our account executives with client-specific insights, recommended discussion topics and actionable guidance that improves productivity, selling consistency and client engagement at scale. We are also selectively adding account executive capacity in key segments. Our second pillar is driving operating leverage and implementing a One Insight operating model, bringing acquisitions onto common platforms and processes, standardizing how we operate across regions and breaking down organizational silos. By operating as one global team, we can deliver the full breadth of Insight's capabilities to clients, deploying AI at scale internally, improve execution, accelerate decision-making and create greater operating leverage across the business to further fuel our growth. This effort includes globalizing corporate functions, streamlining support operations, reviewing our direct and indirect spend and embedding AI more deeply into our day-to-day operations. We are also reducing organizational layers and empowering teams to make decisions closer to the customer, improving speed, agility and accountability. During the quarter, we paused back and mid-office hiring to prioritize client-facing hiring to drive growth and improve organizational efficiency. We are also strengthening collaboration across our global delivery centers with deeper integration and shared accountability across India, the Philippines and Eastern Europe. Our goal is to build a mature global delivery organization with a clear emphasis on AI-led transformation, process simplification and consistent execution. Further, we continue to accelerate our own AI transformation in areas like sales and sales support, finance, HR, marketing and more. Our objective is simple: use AI to make Insight more productive, more scalable and more effective, demonstrating our client zero approach while helping our clients do the same. Our third pillar is our talent plan. We are aligning incentives and rewards to compete for AI talent while continuing to expand our deep expertise in data, cloud and cybersecurity through ongoing investments in advanced training and certifications across Azure, Google Cloud, leading frontier models and other strategic technology partners. We have launched focused incentives in the second half to drive -- to further drive and sustain our growth priorities, and we are reviewing our performance management process to continually raise the bar on our own performance. Ultimately, this all comes back to focus and execution. Our goal is to create a way of working that better supports our business, our partners and our clients. As we implement One Insight, we will measure success through a combination of growth and execution metrics, specifically, our ability to accelerate organic growth in our key priority areas, deliver strong operational performance and increase our OpEx leverage over time while continuing to focus on our client and teammate NPS scores. As we look at the remainder of the year, we currently believe our highest return opportunity today is investing in Insight itself. As a result, our priority is to complete the remaining $149 million of our current share repurchase authorization this year and continue to pause M&A activity. The first half of 2026 demonstrates the strength and resilience of our business model. Demand remains healthy across our key markets, execution continues to improve. Our focus on driving organic growth is gaining traction and our backlog continues to grow. While demand remains strong, we remain mindful of the mix and evolving macroeconomic environment and are managing the business accordingly. Against this backdrop and supported by a strong financial first half performance and confidence in our ability to execute, we are raising our outlook for both gross profit growth and adjusted diluted earnings per share for 2026. James will provide additional details on our updated guidance in a moment. With that, I'll turn the call over to James. James? James Morgado: Thank you, Jack, and good morning, everyone. Our Q2 results displayed broad-based strength across our business and exceeded our expectations for the quarter. Net revenue was $2.4 billion, an increase of 15% in U.S. dollar terms and 14% in constant currency. The increase was driven by hardware and services, partially offset by a decrease in on-prem software as clients shift to cloud-delivered software. As a reminder, cloud-delivered software is presented net in agent services revenue. Hardware revenue increased 21% with double-digit growth in both devices and infrastructure. Core services revenue was up 14%, reflecting contributions from both acquisitions and the organic business with stronger growth from the acquired businesses. Organic growth accelerated slightly from Q1, though we recognize there is still work to do to reach our full potential. Gross profit increased 18%. Cloud gross profit was $171 million, an increase of 39%, driven by both growth in SaaS and Infrastructure as a Service as well as security software from our Sekuro acquisition. Insight Core Services gross profit was $95 million, an increase of 21%, driven by contribution from acquisitions as well as modest organic growth boosted by gross margin expansion. Hardware gross profit was up 10%, while gross margin declined 110 basis points due to pricing and client mix. From a geographic perspective, all regions delivered double-digit gross profit growth. North America grew 16%, driven by cloud and core services. EMEA increased 13%, driven by ongoing transactions in UAE and Saudi Arabia, where we act as the agent. And APAC grew 67%, fueled by acquisition contributions attributable to our cybersecurity-related offerings. As a result, total gross margin was 21.7%, an increase of 60 basis points. Adjusted SG&A increased 12%, primarily due to an increase in variable compensation and acquisitions. During the quarter, we implemented disciplined cost controls, including a pause in back and mid-office hiring, excluding sales and technical talent as prioritized investments in our key growth areas. This resulted in adjusted EBITDA of $190 million, up 29%, while margin expanded 90 basis points to 7.9%. And our adjusted diluted earnings per share were $3.86, up 44% in U.S. dollar terms and 43% in constant currency. For the quarter, we used $12 million of cash flow from operations, and year-to-date, we generated $20 million, which was in line with our expectations and our typical seasonality. We continue to anticipate cash flow from operations in the range of $300 million to $400 million. In Q2, we repurchased $75 million in shares and have $149 million in remaining authorization, which we intend to exhaust before the end of the year. The projected $299 million of share repurchases for the year would represent over 90% of our projected free cash flow. We exited Q2 with total debt of approximately $1.5 billion compared to $1.3 billion a year ago with a net leverage ratio of 1.7. The year-over-year increase in debt was primarily related to acquisitions and share repurchases. We have ample liquidity to meet our needs. And as of the end of Q2, we had access to the $2 billion capacity under our ABL facility, of which approximately $1 billion was available. Our adjusted return on invested capital for the trailing 12 months at the end of Q2 was 17.3% compared to 15.5% a year ago. Now turning to guidance. As we consider our first half performance and the evolving operating environment, our guidance incorporates the following assumptions and considerations. For the year, we expect our corporate and large enterprise client spending to improve from last year. Hardware gross profit will be up low single digits as component costs are impacting demand, particularly for devices. We expect core services gross profit will grow in the low double digits with contribution from our recent acquisitions as well as improvement in our organic business. We anticipate cloud gross profit to grow in the high teens to low 20% range as we move past the majority of the partner program changes we have previously discussed. We will continue to prudently manage SG&A and expect growth slightly slower than gross profit. We intend to continue to pause M&A and exhaust the remaining $149 million share repurchase authorization in 2026. And finally, as we look ahead to the fourth quarter, we will lap the acquisitions completed last year and work through the remaining impact of the Google Partner program changes. We're also remaining prudent on our Q4 outlook given uncertainty associated with memory price increases, supply chain disruption, and macroeconomic factors. While these factors moderate the year-over-year growth profile, we continue to expect solid execution across the portfolio with the fourth quarter representing our lowest adjusted diluted earnings per share growth of the year. Considering these factors for the year of 2026, our guidance is as follows: we are raising our gross profit growth expectations to 8% to 10%, and our gross margin will be approximately 21.5% to 22%. Excluding stock-based compensation, our adjusted diluted earnings per share will now be between $12.20 to $12.70. This represents approximately 16% growth at $12.45 midpoint compared to the 2025 adjusted diluted earnings per share of $10.75. Finally, we expect cash flow from operations in the $300 million to $400 million range. Our guidance includes interest and other expenses to be approximately $95 million, an effective tax rate of 25.5% to 26.5% for the full year, capital expenditures of $20 million to $30 million and an average share count for the full year of approximately 30 million shares. This outlook excludes stock-based compensation, excludes acquisition-related intangible amortization expense of approximately $83 million, assumes no acquisition-related costs, severance and restructuring or transformation expenses and assumes no change in our debt instruments and no meaningful change in the macroeconomic outlook. I will now turn the call back to Jack. Jack? Jack Azagury: Thank you, James. Before we conclude, I want to take a moment to thank our teammates, our clients and our partners. Our strong performance this quarter reflects the dedication, expertise and commitment of our people, the trust our clients place in us every day and the strength of the partnerships that help us deliver exceptional outcomes. At its core, the One Insight plan is around aligning the company around our greatest opportunities. We are investing in high-growth priority growth markets, building a more scalable and efficient operating model and strengthening our talent and technical capabilities. Taken together, these actions will improve agility, enhance execution and position us to deliver stronger long-term growth and profitability. I'm proud of what we've accomplished so far, but I believe the greatest opportunity still lies ahead. While we have a lot of work to do, we are building from a position of strength with differentiated market position, a clear strategy, outstanding talent and a culture committed to winning for our clients. These strengths give me confidence in our ability to execute and deliver our next phase of growth. Now it's all about focus and execution. Thank you for your continued support of Insight. We look forward to updating you on our progress next quarter. This concludes my prepared remarks, and I will now open the line for your questions. Operator: [Operator Instructions] Your first question is from Joseph Cardoso with JPMorgan. Joseph Cardoso: Congrats on the solid results this morning. Maybe for my first one, Jack, you obviously kind of laid out a number of strategic initiatives that you kind of hinted at last quarter, you also laid out last quarter, encompassing investments, restructuring and reorganization across the business, while also emphasizing kind of a North Star commitment to operating leverage. Maybe just how are you thinking about balancing those 2, especially near term, just given maybe potential risk related to elevated investments or transitory disruptions potentially pressuring the leverage in the interim? And do you even see that as a fair concern? And then I have a follow-up. Jack Azagury: No. I mean, obviously, it is a balance, as you point out. And we have opportunities to improve operating leverage. We've identified many of them already. And our intent is to balance out -- balancing the areas where we find efficiencies and reinvesting part of those efficiencies to fuel growth. And that balance, which we monitor every week, every month, every quarter is what we've already started to do. We're going to invest within our guidance, and we will invest with a focus of always improving operating leverage. But we've identified a number of areas for operational efficiency that give us opportunity to invest and fuel for growth. So that's the balancing out the leadership team is focused on every day. Joseph Cardoso: Got it. And then maybe as my second one, and maybe this is a Jack James combo question here. But just relative to the full year guidance, when I take a look at it, it implies a deceleration in both revenue and gross profit growth into the second half and maybe what even appears to be a decline in operating profit and earnings, if I'm kind of doing my math right, into the second half. Maybe can you just flesh out the drivers behind that dynamic into the back half and how we should think about maybe the upside and downside risk around it? Jack Azagury: Let me start, and then I'll hand over to James. As we've said for some time, we always expected a stronger first half than second half and Q2 was always going to be a high watermark for us. We've also talked last quarter about the fact that we still have some compare on the Google side in Q4. Some of the remaining M&A will come off in Q4 as well and a tougher compare in Q4. So that is really the reasons why we always expect a stronger first half than second half. But also, I will say we are being prudent in our guidance just as we were last quarter. And there's still a lot of uncertainty of memory prices, macroeconomics. So we believe some prudence here is warranted. James? James Morgado: Yes. I think the only thing I would add to that is, Joe, as we look at this, as we exited the first half, I think the underlying demand dynamics are strong as we head into the second half. But given the factors that Jack just outlined, I think it's really important for us to maintain that prudent stance, particularly in Q4 as we think about Q4. We do expect both quarters will post growth. But the compares for us, as we think about this as we progress through the year, they do get more challenging from a year-over-year perspective. So just as we look at the overall second half, I think the underlying demand dynamics remain strong, but there are some things that we have to navigate in the second half. And so I think prudence in our guidance is still important. Operator: Your next question is from Adam Tindle with Raymond James. Adam Tindle: And I want to start with the congrats, especially in light of peer reports. These results are really, really impressive. Jack, I want to ask on sort of your 3 different things to improve. So a multipart question, bear with me. But the first one you talked about was that you're too decentralized, you want to be more connected. The question there would be what that would entail, especially from a system standpoint? Are we talking about ERP systems, stuff like that and the timing to that? The second, and I'll kind of combine these 2, but you talked about investing in organic and then creating greater efficiency through AI. So the question on those 2 would be sort of the timing and size of that investment and the net implication on margin. I imagine that there's some investment but some offset. Are we entering into a period where margins might take a pause or just kind of set expectations on profitability going forward? Jack Azagury: Yes. So on the One Insight operating model, there are multiple levers. We already just in the first 3, 4 months I've been here, are operating as a much more globally integrated leadership team across the globe, bringing the strength of our EMEA, APAC and North America teams together, leveraging best practices, looking at things that have been done multiple times and doing them one way with best practices that there have been many opportunities, including, for example, our AI sales coach. We had multiple efforts underway. We have now one, leveraging the best AI engineering and capabilities and developing one. And just like that example, there are many that our team is already focused on. We are looking at global processes and transforming a number of our systems over the next few years to harmonize our data and harmonize our processes in a number of areas. So we've improved the use of our CRM system globally already just in the first 3 months. So it's a combination of the culture of the team coming together, the operating model, which we've got more work to do and our systems and processes. So we're looking at all levers to make sure we operate as an integrated team. But first, it starts with culture. And frankly, I've been very, very pleased with how our team has come together in the first 3 or 4 months globally to really collaborate and work to the best -- to drive the best results for our clients, our shareholders and our partners. The second part -- Adam, could you -- so the second part, Adam, was on margins. Is that right? Adam Tindle: Yes, basically combining. Jack Azagury: Go ahead. Adam Tindle: Go ahead. Yes, just combining like the investment piece versus the cost savings piece, are we entering into a period of more investment where margins might take a pause? Or do you have AI offsets just to kind of set expectations on margins for investors? Jack Azagury: Yes. Our focus is on improving our operating leverage continuously every year. And so any investments we make will be in the context of improving our margins and our operating leverage. And we believe there is ample opportunity for us to do both at the same time and not -- we are not going to compromise operating leverage to fuel investments. We believe and we have now proof points and initiatives to execute against that and drive the operating leverage that I've mentioned on the call, while at the same time, finding investments in areas like cloud and data and security and building our technical and engineering talent and adding account executives where we need more coverage and so on. James Morgado: And Adam, I would just add a little bit to that on the operating expense leverage side. Certainly, Q2 marked a very strong OpEx leverage. We were at -- as a percentage of gross profit, our operating expenses were just a little north of 65%. That's a good number based on Insight's historical performance. But if I look overall at the first half, we were just a little north of 67%. There is -- my view is that there's plenty of room in the operating expenses as we drive efficiency to not only reinvest some of those dollars back into the priority areas that Jack has mentioned, but also be able to pass that directly and continue to expand EFO margins. So I think that footprint certainly gives us the ability to do both, especially as I look out over the shorter-term period of time. Adam Tindle: That's great color. Maybe just a follow-up, Jack, the decision to continue to pause M&A and focus on share repurchase. I think I can't hold my cards too close to the vest. You probably know how I feel about that. But maybe just take us through that decision. And I am kind of interested, it obviously makes sense now, but as you evaluated the M&A portion, there was probably things that down the road could make sense. I just wonder if you kind of like squint your eyes and give us a little bit of a preview on where in M&A over time, obviously, not right now, but over time, it could make sense for -- to focus on M&A. And James, if you could just dovetail in the free cash flow inflection in the back half to this, what's driving that? It's just a big improvement. So just give us confidence on that. Jack Azagury: Yes. So my first 4 months, Adam, have been solely focused on our organic business and building our 3-year plan. And our 3-year plan, I believe in building plans that are organic plans. M&A comes on top if and when you find it. But you fundamentally -- as a company, we're going to have a 3-year plan that is organic. And then if and when in the future, we find M&A opportunities, that will be an addition that will support the plan and drive we're building -- first and foremost, you have to have an organic business that is working well. And that's been my sole focus. I have spent no brain cycles on M&A in my first 4 months. Now at some point in the next years, do we embark on M&A? We will see. We will look at opportunities, when we look at opportunities that will be aligned to our strategic priorities, which I outlined on the call. But right now, I haven't put any brain cycles on M&A. We've got plenty of work to do on our 3-year plan, and that's what I'm focused on right now. James Morgado: Yes. On the operating cash flow, Adam, it's in line to my expectations. So if we look at the overall first half, it was positive $20 million. Last year, at the same time, we were negative -- pretty close to $100 million negative. So we generated just a little over $400 million in the second half last year. So when I think about our first half performance and what we have in front of us, I think it's -- my overall guidance of $300 million to $400 million makes sense. It's more of our typical linearity. And the reason of that is particularly around Q2 and the timing of large partner payments that impact the cash flow in Q2 that we then generate a significantly more amount of cash in the second half. So everything I see on cash flow, I think, makes sense in terms of what we would generate in the second half. Operator: Your next question is from Lucas Morison with Canaccord Genuity. Lucas Morison: So maybe just starting on hardware. Obviously, it's been a bright spot, driving a lot of the momentum here. A lot of that is presumably ASP driven. Can you help us just decompose what you saw in the quarter between price and unit volume and how that compares to the low single-digit unit decline you framed coming into the year? Jack Azagury: Yes. Look, let me start -- let's break down devices from infrastructure. On the devices side, we have very strong growth. We do see a slight decline in units and still we see average selling prices up. The strength was especially in laptops, much more than desktops or peripheral. The strength for us really was in the laptop business. And we continue to see revenue growth going forward, but number of units, I think will be -- continue to decline for the next few quarters, but supported by great year strength in average selling price. And we still see momentum in Windows 11 refresh, but also clients moving to AI PCs that are now a meaningful portion of the purchases. On the infrastructure business, that we see both strength in units as well as a very strong strength in selling price. We see that as a stronger momentum for a longer period of time. I think we're going to see, especially in servers and storage and networking strength for some time here and our clients modernizing their on-prem capabilities and balancing out with their cloud platform. We see strong growth in cloud and on-prem, cloud outpacing, but clients are definitely investing in their data center, and we don't currently see a pause in that investment. James? James Morgado: The only thing I would add to that is we do -- Jack mentioned this, but we do expect unit decline as it pertains to devices offset by higher ASPs in the second half. But we do expect devices will still grow. It will just moderate from the strong levels we're seeing in Q2 when we look at the overall second half. And just -- Jack mentioned this, but just to be clear, in Q2, we saw in the device side, units were down very low single digits. But specifically around notebooks, we actually saw an increase in units in notebooks. So the overall devices were driven more by declines in units in handhelds and desktops. Lucas Morison: Got it. Super helpful. And then maybe just a follow-up here, and this kind of tries to get at sort of like how durable this cycle might be. There's a view in the market that enterprises are pulling AI workloads back on-premise for security, latency, cost reasons surrounding AI and that this is driving a structurally stronger longer-term server cycle. I'm curious, are you seeing that discussion in your own pipeline as sort of a genuine workload shift there? Or does it look more like simply supply-driven pull forward to you? Jack Azagury: No, we see strength. The server business is very, very strong, and we see continued momentum in the server business. So I would agree with your first hypothesis that's what we're seeing as well. James Morgado: Yes. And Luke, I would just add that, I mean, this is a great position that we currently have. If workloads do start significantly repatriating, we have the ability to architect, deploy and manage those with our customers. And then if the cloud is -- we fully expect cloud to remain strong for quite some time. What I would say is the underlying demand metrics there are healthy. And we can obviously demonstrate our strength there as well. So Insight is, I think, positioned to take advantage regardless of where the trend goes. Lucas Morison: Got it. That's great. And maybe if I can just slip one more in. Just on the E7 launch partner agreement, can you just help us understand sort of the monetization opportunity there? Is the near-term opportunity mostly resale economics, the services attached and deployment attached on that? What's like a time frame for that becoming material? Just thinking through that partnership. Jack Azagury: Yes. We had a very strong quarter with Microsoft on the back of a strong quarter in Q1. We see strong strength in Azure, in Copilot, E7 with Agent 365, which is a very, very strong tool and capability to discover and manage your agent landscape. I think most companies deploy it and find out they have a lot more agents in their environment that they now need to manage and manage the consumption associated with the agents and the security associated with it. So -- we -- our clients are embracing the solution. Copilot is now a very, very strong product. We've deployed it, obviously, internally and have almost all of our employees trained and using it. So we see strong demand there and certainly, Q2 with Microsoft was very strong. And for us, it's strength in resale, but also all the associated services, deploying Copilot, migrating workloads to Azure, migrating data to Fabric, deploying Agent 365, the security associated with it. So we see strength for us both in the resale, but also in the services to help our clients get to value with the solution. Operator: This brings us to the end of the question-and-answer session, which concludes today's call. Thank you so much for attending. You may now disconnect. Before you buy stock in Insight Enterprises, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Insight Enterprises wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Insight Enterprises (NSIT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Insight Enterprises stock has had a strong run so far this year, yet the current share price sits below where a Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiples both suggest it could be. The stock is up 77.8% year to date, which puts more focus on whether the recent gains are still supported by fundamentals. For a company like Insight Enterprises, investors often weigh the ability to convert revenue into reliable cash flow as a potential support for valuation, and balance this against the risk that any slowdown in demand or pressure on margins may quickly change that picture. The company scores 3 out of 6 on the broader valuation checks. This points to a mixed picture rather than a clear bargain or clear overvaluation, even though both the DCF intrinsic value estimate and market multiples currently lean undervalued. The stock's next move may depend on whether that apparent undervaluation still looks compelling once the recent share price performance and broader checks are viewed together. Find out why Insight Enterprises' 21.3% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model here is built on Insight Enterprises' future free cash flow projections rather than short term share price moves. The latest twelve month free cash flow is about $386.2 million, which the model treats as a base for generally growing cash flows over the coming years. That pattern fits a business that already produces meaningful cash and is expected to keep doing so, rather than one relying on a sharp swing from losses to profits. On those assumptions, the DCF model points to an intrinsic value of about $173 per share. Compared with the current market price, this implies an intrinsic discount of 13.6%, which indicates the market is placing a lower value on Insight Enterprises' cash generation than the model does. For investors, the key question is whether the free cash flow profile that underpins this DCF feels realistic and sustainable. On balance, the Discounted Cash Flow output indicates Insight Enterprises stock currently appears undervalued relative to its projected cash flows. Our Discounted Cash Flow (DCF) analysis suggests Insight Enterprises is undervalued by 13.6%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Insight Enterprises. The P/E ratio is a useful cross check for Insight Enterprises because earnings are a key focus for many investors in established IT services and solutions companies. Insight Enterprises trades on a P/E of about 20.8x, which is close to the peer average of 20.0x and well below the wider electronic industry average of about 31.8x. On simple benchmarks, that puts the stock at a modest discount to the broader sector while remaining in line with more direct peers. The valuation model used here also estimates a fair P/E of about 27.2x once factors such as scale, margins and risk are considered. That is meaningfully higher than the current 20.8x multiple. The gap suggests the market is pricing Insight Enterprises below the level implied by this tailored P/E benchmark, even after the strong year to date share price move. On the P/E lens, Insight Enterprises stock appears undervalued compared with both peers and the modelled fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Insight Enterprises pick up where the valuation checks leave off and explain what would need to change in Insight Enterprises' growth, margins and earnings for the stock to look meaningfully higher or lower than today’s price. Each narrative links its number to a specific view on where growth, profitability and key risks might go next, which you can revisit as fresh information emerges. One of the top community narratives on Insight Enterprises: 11% overvalued Read one of the top narratives on Insight Enterprises Do you think there's more to the story for Insight Enterprises? Head over to our Community to see what others are saying! Insight Enterprises screens as undervalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and the tailored P/E multiple, even after the recent share price performance. The broader checks sit in mixed territory, so the current discount is not a clear-cut signal but a starting point for closer work on cash flow resilience and earnings quality. What matters most from here is whether Insight Enterprises can keep converting its business into steady free cash flow and maintain margins. If that holds, the current valuation could look conservative rather than cautious pricing of risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NSIT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Net Revenue: $2.4 billion, an increase of 15% in US dollar terms and 14% in constant currency. Gross Profit: Increased 18% year-over-year. Gross Margin: 21.7%, an increase of 60 basis points. Adjusted EBITDA: $190 million, up 29%, with margin expanding 90 basis points to 7.9%. Adjusted Diluted EPS: $3.86, up 44% in US dollar terms and 43% in constant currency. Hardware Revenue: Increased 21%, with double-digit growth in both devices and infrastructure. Core Services Revenue: Up 14%, reflecting contributions from both acquisitions and the organic business. Cloud Gross Profit: $171 million, an increase of 39%. Core Services Gross Profit: $95 million, an increase of 21%. Hardware Gross Profit: Up 10%, while gross margin declined 110 basis points due to pricing and client mix. Regional Gross Profit Growth: North America grew 16%, EMEA increased 13%, and APAC grew 67%. Cash Flow from Operations: Used $12 million in Q2; year-to-date generated $20 million. Share Repurchases: Repurchased $75 million in Q2, with $149 million remaining in authorization. Total Debt: Approximately $1.5 billion, compared to $1.3 billion a year ago. Adjusted Return on Invested Capital: 17.3% for trailing 12 months, compared to 15.5% a year ago. 2026 Guidance: Raising gross profit growth expectations to 8% to 10%, with adjusted diluted EPS between $12.20 and $12.70. Warning! GuruFocus has detected 8 Warning Signs with NSIT. Is NSIT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total gross profit grew 18%, with adjusted diluted EPS up 44% year-over-year. Cloud gross profit increased 39%, driven by strong performance with Microsoft and Google. Infrastructure hardware revenue rose more than 20%, reflecting strong demand for AI-ready infrastructure. All geographic regions delivered double-digit gross profit growth, with APAC up 67%. Company raised full-year guidance for gross profit growth and adjusted diluted EPS. Hardware gross margin declined 110 basis points due to pricing and client mix. On-prem software revenue decreased as clients shift to cloud-delivered software. Device unit volumes declined slightly, with weakness in desktops and handhelds. Fourth quarter growth expected to be the lowest of the year due to tough compares and uncertainty from memory price increases and supply chain disruptions. Cash flow from operations was only $20 million year-to-date, with significant generation expected in the second half. Q: How is Insight balancing its strategic investments in growth areas with its commitment to improving operating leverage, especially in the near term?A: Jack Azagury (CEO) explained that the company is actively balancing these priorities by identifying operational efficiencies and reinvesting a portion of those savings into high-growth areas like AI infrastructure and services. He emphasized that the leadership team monitors this balance weekly and monthly, with a firm commitment to always improving operating leverage while investing within the company's guidance. James Morgado (CFO) added that Q2 marked a very strong OpEx leverage point, with operating expenses at just over 65% of gross profit, and he sees ample room to both reinvest and expand margins. Q: Can you flesh out the drivers behind the expected deceleration in revenue and gross profit growth in the second half of 2026, and the associated risks?A: Jack Azagury (CEO) stated that the company always expected a stronger first half than second half, with Q2 being a high watermark. He cited tough comparisons in Q4, including the remaining impact of Google Partner program changes and the lapping of acquisitions completed last year. He also noted the company is being prudent in its guidance due to uncertainty around memory prices and macroeconomic factors. James Morgado (CFO) added that while underlying demand dynamics remain strong, the year-over-year compares get more challenging as the year progresses, warranting a prudent stance, particularly for Q4. Q: What does the "One Insight" operating model entail, and are we entering a period where margins might pause due to investments, or will AI offsets help?A: Jack Azagury (CEO) detailed that the One Insight model involves multiple levers, including a more globally integrated leadership team, leveraging best practices, and harmonizing systems and processes over the next few years. He gave an example of consolidating multiple AI sales coach efforts into one. On margins, he was clear that the focus is on improving operating leverage continuously every year, and the company will not compromise operating leverage to fuel investments. James Morgado (CFO) reinforced this, stating that the current expense footprint gives the company the ability to both reinvest in priority areas and continue to expand earnings from operations margins. Q: What is the rationale for pausing M&A and focusing on share repurchases, and what is driving the expected free cash flow inflection in the second half?A: Jack Azagury (CEO) stated that his first four months have been solely focused on the organic business and building a three-year plan, which is fundamentally an organic plan. He has spent no time on M&A and believes the company must first have a well-functioning organic business. James Morgado (CFO) explained that the cash flow guidance of $300-$400 million is in line with typical seasonality. He noted that Q2 timing of large partner payments impacts cash flow, but the company generated over $400 million in the second half of last year, and he sees a similar dynamic driving the expected inflection this year. Q: Can you decompose the hardware revenue growth between price and unit volume, and how does this compare to the low single-digit unit decline expected for the year?A: Jack Azagury (CEO) broke down the performance by segment. In devices, there was a slight decline in units, but this was offset by strong average selling price (ASP) increases, particularly in laptops. He noted momentum from the Windows 11 refresh and the shift to AI PCs. In infrastructure, there was strength in both units and ASPs, driven by clients modernizing on-prem capabilities. James Morgado (CFO) added that in Q2, device units were down very low single digits, but notebook units actually increased, with declines concentrated in handhelds and desktops. Q: Is the strong server cycle being driven by a genuine workload shift back on-premise for AI, or is it a supply-driven pull-forward?A: Jack Azagury (CEO) confirmed that the company sees genuine strength and continued momentum in the server business, agreeing with the hypothesis that enterprises are pulling AI workloads back on-premise for security, latency, and cost reasons. James Morgado (CFO) added that Insight is well-positioned to take advantage of this trend, as it can architect, deploy, and manage these environments, while also expecting cloud to remain strong for quite some time. Q: What is the monetization opportunity for Insight as a global launch partner for Microsoft 365 E7 (Frontier Suite)?A: Jack Azagury (CEO) highlighted a very strong quarter with Microsoft, driven by strength in Azure, Copilot, and E7 with Agent 365. He explained that the opportunity is not just in resale economics but also in the associated services, such as deploying Copilot, migrating workloads to Azure, and deploying Agent 365. He noted that clients are embracing the solution, and the company sees strength in both resale and the services needed to help clients achieve value. Q: How is the company thinking about the balance between investments and cost savings, and what is the expectation for margins going forward?A: Jack Azagury (CEO) reiterated that the company's focus is on improving operating leverage every year and that any investments will be made in the context of improving margins. He stated that the company has proof points and initiatives to drive operating leverage while simultaneously finding investments in areas like cloud, data, and security. James Morgado (CFO) provided a specific data point, noting that Q2 operating expenses as a percentage of gross profit were just over 65%, a good number historically, and that there is plenty of room to drive efficiency and expand margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Insight Enterprises (NSIT) is back on investor watch after reporting second quarter 2026 earnings and impairment charges on a real estate asset, alongside an update to its full year guidance. See our latest analysis for Insight Enterprises. Insight Enterprises' recent earnings and guidance update has come alongside a sharp shift in market sentiment, with a 69.24% 90 day share price return and a 21.27% 1 year total shareholder return signalling strong positive momentum. If you are looking to find other technology driven growth stories while Insight Enterprises is in focus, this is a good moment to scan 56 AI infrastructure stocks After Insight Enterprises' sharp rerating and fresh guidance, the key question is whether the current price fairly reflects those updated earnings and impairment details, or whether waiting could still offer a more attractive entry point. Compared with the narrative fair value of $107.50, Insight Enterprises at a last close of $149.32 sits well above that estimate. This approach places more weight on longer term earnings power than on the recent share price run. Read the complete narrative. Want to see what kind of revenue climb, margin profile, and profit multiple are built into this story? The most popular Insight Enterprises narrative spells out a precise path. The assumptions are detailed, and the outcome for fair value might surprise you. Result: Fair Value of $107.5 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Insight Enterprises still faces pressure if large clients slow IT spending or if vendors push more direct cloud and as a service models that bypass resellers. Find out about the key risks to this Insight Enterprises narrative. While the popular narrative suggests Insight Enterprises is 38.9% overvalued at $149.32 versus a fair value of $107.50, the earnings multiple sends a different signal. The current P/E of 20.8x sits well below the US Electronic industry at 31.8x and also below the fair ratio of 27.2x. That gap points to less exuberance in the earnings multiple than in the narrative model and raises a fair question: which signal should carry more weight in your own work on NSIT? See what the numbers say about this price — find out in our valuation breakdown. With sentiment on Insight Enterprises mixed between risks and rewards, this is a moment to move quickly and test the numbers yourself. To see how that balance looks in detail, take a closer look at the 3 key rewards and 2 important warning signs If you stop with Insight Enterprises, you could miss other stocks that fit your goals. Take a few minutes to scan fresh ideas tailored to different risk and income preferences. Target potential mispriced quality by checking stocks screened as 52 high quality undervalued stocks that align with strong business fundamentals. Strengthen your income stream by reviewing companies in the 8 dividend fortresses that focus on higher yielding payouts. Reduce portfolio stress by scanning the 83 resilient stocks with low risk scores and concentrating on companies assessed with more resilient profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NSIT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Insight Enterprises, Inc.? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 15% to $2.4 billion, while adjusted EBITDA increased 29% to $190 million and adjusted EPS climbed 44% to $3.86. Growth was broad-based across hardware, cloud and services, lifting total gross margin to 21.7%. Raised 2026 outlook and strategic focus: Insight increased its gross-profit-growth forecast to 8%-10% and adjusted EPS guidance to $12.20-$12.70. Its three-year “One Insight Plan” targets AI infrastructure and services, operational efficiency and talent development. Capital allocation favors buybacks over acquisitions: The company repurchased $75 million of shares in the quarter and plans to use the remaining $149 million authorization by year-end, while continuing to pause M&A. Management remains cautious about fourth-quarter growth due to memory-price increases, supply-chain risks and macroeconomic uncertainty. Marvell Shares Gap Down: Is AI Sentiment Changing? Insight Enterprises (NASDAQ:NSIT) reported second-quarter results that exceeded its expectations, with broad-based growth in hardware, cloud and services helping drive operating leverage. The company raised its full-year outlook for gross profit growth and adjusted diluted earnings per share while outlining a three-year “One Insight Plan” centered on AI infrastructure, AI services, operational efficiency and talent development. For the quarter ended June 30, net revenue increased 15% year over year to $2.4 billion, or 14% on a constant-currency basis. Gross profit rose 18%, adjusted EBITDA increased 29% to $190 million, and adjusted diluted earnings per share climbed 44% to $3.86. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “Building on the momentum we established in the first quarter, we delivered broad-based growth across our business and generated strong operating leverage,” President and CEO Jack Azagury said. He said the results reflected demand for AI-ready infrastructure, cloud modernization, cybersecurity and services designed to help clients deploy AI applications. Hardware revenue increased 21% during the quarter, supported by double-digit growth in both devices and infrastructure. Azagury said infrastructure hardware revenue increased by more than 20%, reflecting demand for servers, storage and networking as customers modernize technology environments and prepare for AI workloads. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Chief Financial Officer James Morgado said hardware gross profit grew 10%, though hardware gross margin declined 110 basis points because of pricing and client mix. During the question-and-answer session, management said device units declined by very low single digits, offset by higher average selling prices. Notebook unit volumes increased, while handheld and desktop units declined. Management said it expects device unit declines to continue for the next several quarters, but anticipates devices will continue growing with support from higher average selling prices, Windows 11 refresh activity and increased adoption of AI PCs. → Ulta's Growth Is Real, But So Are the Risks Infrastructure demand remained strong in both volume and pricing, according to Azagury. He said customers continue to invest in data centers, servers, storage and networking while balancing on-premises technology with cloud platforms. Asked whether enterprises were moving AI workloads back on premises for security, latency and cost reasons, Azagury said Insight was seeing support for that view. Cloud gross profit rose 39% to $171 million, driven by SaaS, infrastructure-as-a-service and security software contributions from the Sekuro acquisition. Core services gross profit increased 21% to $95 million, helped by acquisitions, modest organic growth and gross-margin expansion. North America gross profit rose 16%, EMEA increased 13%, and APAC grew 67%, with APAC supported by cybersecurity-related acquisition contributions. Total gross margin improved 60 basis points to 21.7%. Azagury said the company is developing a three-year business plan called the One Insight Plan. The initiative is intended to accelerate organic growth, move the company to a more unified operating model and improve operating leverage. The plan has three pillars: increased investment in AI infrastructure and AI services; operational excellence through a common global operating model; and a talent strategy focused on AI, data, cloud and cybersecurity expertise. Azagury said Insight has identified areas where parts of its business remain too decentralized, including acquisitions and support functions that have not yet been fully integrated. The company plans to standardize processes, bring acquisitions onto common platforms, reduce organizational layers and expand collaboration across delivery centers in India, the Philippines and Eastern Europe. During the quarter, Insight paused back- and mid-office hiring, except for sales and technical roles, as it prioritized customer-facing hiring and efficiency efforts. Management said it intends to reinvest a portion of operational savings into priority growth areas while maintaining its focus on expanding operating leverage. “We are not going to compromise operating leverage to fuel investments,” Azagury said during the call. Morgado added that the company sees room to both reinvest in strategic areas and continue expanding earnings-from-operations margins. The company also introduced Insight Managed Exposure Defense, or IMED, a managed security offering aimed at helping customers address AI-driven cyber risks. Azagury said the offering includes a 24-hour quoting process and had attracted strong customer interest within weeks of its launch. Insight also plans to productize its top 10 service offerings over the coming months. Insight highlighted its status as a global launch partner for Microsoft 365 E7, Microsoft’s Frontier Suite. Azagury said the company sees opportunities in both resale and associated services, including Copilot deployments, Azure workload migrations, data migrations to Fabric, Agent 365 implementation and related security services. Management said Insight had a strong quarter with Microsoft, following strength in the first quarter. Azagury said the company has deployed Copilot internally and trained nearly all employees on its use. The company cited one AI project involving a healthcare consulting provider that conducts hospital surveys. Insight built an OpenAI-powered solution that transforms survey notes into structured findings and recommendations. According to Azagury, the client expects more than $400,000 in annual productivity savings, with report preparation time reduced from several hours to less than one hour. For 2026, Insight raised its gross-profit-growth outlook to 8% to 10% and expects gross margin of approximately 21.5% to 22%. The company now expects adjusted diluted earnings per share, excluding stock-based compensation, of $12.20 to $12.70. At the $12.45 midpoint, that would represent approximately 16% growth from 2025 adjusted diluted EPS of $10.75. Insight maintained its expectation for operating cash flow of $300 million to $400 million. Morgado said first-half cash flow reflected typical seasonality and the timing of large partner payments, with stronger cash generation expected in the second half. The company repurchased $75 million of shares during the second quarter and had $149 million remaining under its authorization. Management said it intends to use the remainder before year-end and continue pausing mergers and acquisitions. Azagury said his first four months as CEO have been focused on strengthening the organic business and building the three-year plan rather than pursuing acquisitions. Any future M&A activity, he said, would need to align with the company’s strategic priorities. Management expects corporate and large-enterprise customer spending to improve from last year but said it remains cautious about the fourth quarter because of memory-price increases, supply-chain disruption and macroeconomic uncertainty. The company also expects to lap prior-year acquisitions and work through remaining Google partner-program changes in the fourth quarter, which it expects to be its lowest adjusted EPS growth quarter of the year. Insight Enterprises, Inc is a global technology provider headquartered in Tempe, Arizona. Founded in 1988, the company specializes in helping organizations harness the power of digital transformation by offering a comprehensive portfolio of IT hardware, software, cloud and licensing management solutions. Insight's expertise spans across the full technology lifecycle, from initial strategy and consulting to implementation, integration and ongoing managed services. At the core of Insight's business are its consulting and professional services, which guide clients through complex technology environments and ensure optimal deployment of solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Insight Enterprises Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Insight Enterprises (NSIT) came out with quarterly earnings of $3.86 per share, beating the Zacks Consensus Estimate of $2.95 per share. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +30.85%. A quarter ago, it was expected that this information technology provider would post earnings of $2.45 per share when it actually produced earnings of $2.88, delivering a surprise of +17.55%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Insight Enterprises, which belongs to the Zacks Retail - Mail Order industry, posted revenues of $2.4 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.67%. This compares to year-ago revenues of $2.09 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Insight Enterprises shares have added about 72.2% since the beginning of the year versus the S&P 500's gain of 12.8%. While Insight Enterprises has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Insight Enterprises was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.70 on $2.07 billion in revenues for the coming quarter and $11.46 on $8.49 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Mail Order is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. 1-800-Flowers.com (FLWS), another stock in the same industry, has yet to report results for the quarter ended June 2026. This flower and gift retailer is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of -4.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 1-800-Flowers.com's revenues are expected to be $293.68 million, down 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report 1-800 FLOWERS.COM, Inc. (FLWS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Strong quarter led by AI momentum driving growth in cloud, infrastructure and services; Raising guidance for full year CHANDLER, Ariz., August 06, 2026--(BUSINESS WIRE)--Insight Enterprises, Inc. (NASDAQ: NSIT) (the "Company") today reported financial results for the quarter ended June 30, 2026. Highlights include: Consolidated net sales increased 15% year over year Gross profit increased 18% year over year to $521.6 million and gross margin expanded 60 basis points to 21.7% Consolidated net earnings increased 65% year over year to $77.6 million Adjusted earnings before interest, tax, depreciation and amortization ("EBITDA") increased 29% year over year to $190.4 million Diluted earnings per share of $2.57 increased 76% year over year Adjusted diluted earnings per share of $3.86 increased 44% year over year Cash flows used in operating activities were $12.2 million In the second quarter of 2026, net sales increased 15%, year over year, to $2.4 billion, and gross profit increased 18%, year over year, to $521.6 million. Gross margin expanded 60 basis points compared to the second quarter of 2025 to 21.7%. Selling and administrative expenses increased 9%, year to year, while Adjusted selling and administrative expenses increased 12%, year to year. Earnings from operations of $131.0 million, or 5.5% of net sales, increased 51% compared to $86.5 million in the second quarter of 2025. Adjusted earnings from operations of $180.6 million, or 7.5% of net sales, increased 31% year over year compared to $138.0 million in the second quarter of 2025. Consolidated net earnings were $77.6 million, or 3.2% of net sales, in the second quarter of 2026, up 65% year over year compared to $46.9 million in the second quarter of 2025. Adjusted consolidated net earnings were $116.4 million, or 4.9% of net sales, in the second quarter of 2026, up 35% year over year compared to $86.0 million in the second quarter of 2025. Diluted earnings per share for the quarter was $2.57, up 76% year over year, and Adjusted diluted earnings per share was $3.86, up 44% year over year. "I am pleased to report another strong quarter for Insight. Building on a strong first quarter, we delivered broad-based growth across our business and generated strong operating leverage, with strength in cloud, infrastructure, and services, driven by AI demand," stated Jack Azagury, President and Chief Executive Officer. "This resulted in total gross profit growth of 18%, adjusted earnings from operations growth of 31%, and adjusted diluted earnings per share growth of 44%," Azagury added. KEY HIGHLIGHTS Results for the Quarter: Consolidated net sales for the second quarter of 2026 of $2.4 billion increased 15%, year over year, when compared to the second quarter of 2025. Product net sales increased 13%, year over year, and services net sales increased 21%, year over year. Software product net sales decreased 6%, year to year, while hardware product net sales increased 21%, year over year. Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales increased 14%, year over year, with increases in net sales in APAC, North America and EMEA of 36%, 15% and 6%, respectively, year over year. Consolidated gross profit increased 18% compared to the second quarter of 2025 to $521.6 million, with consolidated gross margin expanding 60 basis points to 21.7% of net sales. Product gross profit increased 5%, year over year, and services gross profit increased 27%, year over year. Cloud gross profit increased 39%, year over year, and Insight Core services gross profit increased 21%, year over year. By segment, gross profit: Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 17%, year over year, with gross profit growth in APAC, North America and EMEA of 56%, 16% and 12%, respectively, year over year. Consolidated earnings from operations increased 51% compared to the second quarter of 2025 to $131.0 million, or 5.5% of net sales. By segment, earnings from operations: Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 50%, year over year, with increases in earnings from operations in North America and APAC of 64% and 28%, respectively, year over year, partially offset by a decrease in EMEA of 20% year to year. Adjusted earnings from operations increased 31% compared to the second quarter of 2025 to $180.6 million, or 7.5% of net sales. By segment, Adjusted earnings from operations: Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations increased 30%, with increases in Adjusted earnings from operations in APAC and North America of 48% and 36%, respectively, year over year, partially offset by a decrease in EMEA of 5% year to year. Consolidated net earnings and diluted earnings per share for the second quarter of 2026 were $77.6 million and $2.57, respectively, at an effective tax rate of 27.0%. Adjusted consolidated net earnings and Adjusted diluted earnings per share for the second quarter of 2026 were $116.4 million and $3.86, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 43%, year over year. In discussing financial results for the three and six months ended June 30, 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 are raising our gross profit growth expectations to 8% to 10% and expect gross margin to be between 21.5% and 22.0%. We now expect our Adjusted diluted earnings per share to be between $12.20 and $12.70. This represents approximately 16% growth at the midpoint of $12.45 compared to our full year 2025 Adjusted diluted earnings per share of $10.75. This outlook assumes: interest and other expenses of approximately $95 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 second 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, (ix) certain third-party data center service outage related expenses and recoveries, and (x) 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, (xii) stock-based compensation expense and (xiii) certain third-party data center service outage related expenses and recoveries, 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. FORWARD-LOOKING INFORMATION Certain statements in this release and the related conference call, webcast and presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those related to the impact of inflation and higher interest rates, the Company’s future financial performance and results of operations, including gross profit, Adjusted diluted earnings per share, gross margin, and Adjusted selling and administrative expenses, as well as the Company’s other key performance indicators, the Company’s anticipated effective tax rate, interest and other expenses, capital expenditures, and expected average share count, the Company’s expectations regarding cash flow, the Company’s expectations regarding supply constraints, future trends in the IT market, the effects of tariffs and trade policies, and the Company’s business strategy and strategic initiatives, all of which are inherently subject to risks and uncertainties, and some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in the Company’s filings with the Securities and Exchange Commission (the "SEC"), including in the "Risk Factors" sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC: actions of our competitors, including manufacturers and publishers of products we sell; our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can and do change significantly in the amounts made available and in the requirements year over year; our ability to keep pace with rapidly evolving technological advances including generative and agentic artificial intelligence ("AI") and the evolving competitive marketplace; general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or a decline in market activity related to tariffs and trade policies, international conflicts including the war in Iran, or otherwise; changes in the IT industry and/or rapid changes in technology; our ability to provide high quality services to our clients; our reliance on independent shipping companies; the risks associated with our international operations including our expansion into the Middle East; supply constraints for products; natural disasters or other adverse occurrences, including public health issues such as pandemics or epidemics; disruptions in our IT systems and voice and data networks; cyberattacks, outages, or third-party breaches of data privacy as well as related breaches of government regulations; intellectual property infringement claims and challenges to our copyrights, patents, trademarks and trade names; potential liability and competitive risk based on the development, adoption, and use of generative and agentic AI; legal proceedings, client audits and failure to comply with laws and regulations; risks of termination, delays in payment, audits and investigations related to our public sector contracts; exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations; our potential to draw down a substantial amount of indebtedness; increased debt and interest expense and the possibility of decreased availability of funds under our financing facilities; possible significant fluctuations in our future operating results as well as seasonality and variability in client demands; potential contractual disputes or collection matters with our clients and third-party suppliers; our dependence on certain key personnel, our ability to attract, train and retain skilled teammates and our ability to manage the business during the transition of our new Chief Executive Officer; risks associated with the integration and operation of acquired businesses, including achievement of expected synergies and benefits; and future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock. Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806171314/en/ Contacts JAMES MORGADO CHIEF FINANCIAL OFFICERTEL. 480.333.3251EMAIL [email protected]