Insight Enterprises (NSIT) Q1 2026 earnings summary

Executive summary

• Net sales reached $2.13 billion for Q1 2026, up 1% year-over-year, driven by growth in services and hardware, with gross profit up 14% to $462.2 million and gross margin expanding 240 basis points to 21.7%.

• Adjusted EBITDA increased 27% to $152 million, adjusted diluted EPS rose 26% to $2.88, and net earnings surged to $30 million, with diluted EPS at $0.97.

• Services and cloud offerings were key drivers, with services net sales up 17% and cloud gross profit up 35% year-over-year.

• CEO transition announced, with new leadership emphasizing AI-driven solutions and operational excellence.

• Strategic focus on organic growth, operational execution, and capital allocation toward share repurchases, with M&A paused for 2026.

Financial highlights

• Gross margin improved to 21.7% (+240 bps YoY); adjusted EBITDA margin was 7.1% of net sales.

• Adjusted earnings from operations rose 27% to $141.1 million; services gross profit reached $283 million (+23% YoY) with a 61% margin.

• Cash flow from operations was $32.4 million for Q1; cash and cash equivalents at quarter-end were $443.7 million.

• Debt outstanding was $1.5 billion as of March 31, 2026.

• Product net sales decreased 2% year-over-year, while services net sales increased 17%.

Outlook and guidance

• Full-year 2026 guidance: gross profit growth in low single digits, gross margin ~21.5%, adjusted diluted EPS of $11.00–$11.50, about 5% growth at midpoint over 2025.

• Capital expenditures expected at $20–$30 million; cash flow from operations projected at $300–$400 million.

• Interest/other expenses assumed at ~$90 million, effective tax rate 25.5–26.5%.

• Corporate and large enterprise spending expected to remain subdued; hardware gross profit to be flat, core services and cloud gross profit to grow.

• Guidance excludes acquisition-related amortization and assumes no major changes in debt or macroeconomic environment.