Insight Enterprises Q4 adjusted EPS beats expectations as margins expand

Overview

• IT solutions provider's Q4 net sales fell 1% yr/yr, missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations, rising 11% yr/yr

• Company's Q4 gross profit rose 9%, driven by Cloud and Core Services growth

Outlook

• Insight Enterprises expects 2026 adjusted EPS between $10.10 and $10.60, including stock-based compensation

• Company projects 2026 adjusted EPS between $11.00 and $11.50, excluding stock-based compensation

• Insight Enterprises anticipates 2026 gross margin to be approximately 21%

Result Drivers

• CLOUD AND CORE SERVICES - Strong execution in Cloud and Core Services businesses drove record gross profit and margin expansion

• SERVICES GROWTH - Services net sales increased 11% year over year, contributing to overall gross profit growth

• REGIONAL PERFORMANCE - Gross profit increased across all regions, with notable growth in EMEA and APAC

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Insight Enterprises Inc is $120.00, about 47% above its February 4 closing price of $81.65

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw7WWyYMa

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