Insight Enterprises (NSIT) investor relations material

Executive summary

• Q3 net sales rose 22% YoY to $2.44B and gross profit increased 20% to $523.2M; adjusted operating earnings rose 23% to $166.9M and adjusted diluted EPS gained 34% to $3.59.

• GAAP net earnings fell 57% to $22.2M; higher earnout revaluation, severance and restructuring costs weighed on results.

• Nine-month net sales grew 12% to $6.97B, gross profit rose 17% to $1.51B, and adjusted operating earnings increased 27% to $488.7M.

Financial highlights

• Q3 product sales rose 22% and services sales increased 20%; hardware sales grew 32%, while software sales declined 3%.

• Q3 adjusted EBITDA increased 22% to $177.4M; adjusted net earnings rose 28% to $107.3M.

• GAAP operating earnings fell 26% to $68.7M; Q3 severance and restructuring expense was $25.7M, including $17.2M from the voluntary separation program.

• Q3 operating cash flow was $128.4M; nine-month operating cash flow was $148.5M.

Outlook and guidance

• FY2026 gross profit growth guidance is 12.5%-14.0%, with gross margin of ~21.5%.

• FY2026 adjusted diluted EPS guidance is $13.55-$13.75, or ~27% growth at the $13.65 midpoint.

• Outlook assumes ~$95M of interest and other expenses, a 25.5% effective tax rate, $20M-$30M of capex and ~30.0M average diluted shares.

• Guidance excludes ~$83.4M of acquired-intangible amortization and assumes no significant macroeconomic change or acquisition, integration, transformation, severance or restructuring costs.