Insight Enterprises (NSIT) Q4 2025 earnings summary

Executive summary

• Achieved record gross profit and margin in Q4 2025, driven by strong cloud and core services growth, despite a 1% revenue decline year-over-year.

• FY 2025 net sales were $8.2B, down 5% year-over-year, with gross profit flat at $1.8B and gross margin up 110 bps to 21.4%.

• Adjusted diluted EPS for FY 2025 was $9.87, up 2% year-over-year; Q4 adjusted diluted EPS rose 11% to $2.96.

• Integrated acquisitions enhanced advisory, data, AI, and cybersecurity capabilities; launched Prism AI platform and received multiple industry and partner awards.

• Operating cash flow for FY 2025 was $304M, supporting continued investment and financial flexibility.

Financial highlights

• Q4 2025 net sales: $2.0B, down 1% YoY; gross profit up 9% to $478M; gross margin up 220 bps to 23.4%.

• Q4 cloud gross profit: $138M, up 11%; core services gross profit: $90M, up 16%.

• FY 2025 cloud gross profit: $495M, up 2%; core services gross profit: $320M, up 2%.

• FY 2025 adjusted EBITDA: $543M (flat YoY), margin 6.6%; adjusted EFO: $504M (flat YoY).

• FY 2025 adjusted diluted EPS: $9.87, up 2%; cash flow from operations: $304M; adjusted free cash flow: $279M.

Outlook and guidance

• FY 2026 guidance: gross profit growth in low single digits, gross margin ~21%.

• Adjusted diluted EPS expected at $10.10–$10.60 (including stock-based comp) and $11.00–$11.50 (excluding stock-based comp), ~5% growth at midpoint.

• Cash flow from operations expected at $300M–$400M; capex $20M–$30M; effective tax rate 25.5%–26.5%.

• Hardware gross profit expected flat; core services gross profit to grow high single digits; cloud gross profit to grow low double digits.

• EPS growth weighted to first half of 2026; cloud and hardware stronger in H1, with a tail impact from partner program changes in H2.