Insight Enterprises (NSIT) Q4 2025 earnings summary

Executive summary

• Delivered record gross profit and gross margin in Q4 2025, driven by strong cloud and core services performance, 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 and the launch of the Prism AI platform enhanced advisory, data, AI, and cybersecurity capabilities.

• Recognized by major partners and industry analysts for software, AI, cloud, and workspace solutions, with multiple industry and employer awards.

Financial highlights

• Q4 2025 net sales: $2.0B, down 1% year-over-year; 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%.

• Q4 adjusted EBITDA: $156M, up 11%, with margin expanding to 7.6%.

• FY 2025 adjusted EBITDA margin: 6.6%; adjusted ROIC: 15.2%.

• Operating cash flow for FY 2025 was $304M; adjusted free cash flow $279M (89% of adjusted net earnings).

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 compensation) and $11.00–$11.50 (excluding stock-based compensation), ~5% growth at midpoint.

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

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

• Assumes no major acquisitions, restructuring, or significant macroeconomic changes.