Insight Enterprises reported third‑quarter 2025 results, showing net sales of $2.003 billion, a 4% year‑over‑year decline, and gross profit of $434.2 million, flat from the same period last year. Gross margin expanded to 21.7%, up 100 basis points, driven by a mix shift toward higher‑margin hardware and services. Operating earnings were $93.1 million and net earnings were $50.9 million, reflecting higher interest expense from an increased ABL balance.
Diluted earnings per share for the quarter were $1.62, a 7% increase from the prior year, while adjusted diluted EPS rose to $2.43, up 11% year‑over‑year. Adjusted earnings from operations were $126.4 million, up 5% from the same period last year, indicating that one‑time charges were largely neutralized. Acquisition integration costs rose to $3.08 million, up 42% from the prior year, yet operating expenses grew only 1% year‑over‑year, with adjusted selling and administrative expenses decreasing 1%.
Segment performance showed North America net sales down 5% year‑over‑year, EMEA up 2%, and APAC flat. Product sales declined 19% on‑premises software, while services net sales increased 3% and hardware net sales increased 1%. Cloud gross profit grew 7% year‑over‑year, exceeding expectations.
Management highlighted that commercial net sales grew for the sixth straight quarter and cited macroeconomic uncertainty as a factor in the revenue decline. The company noted challenges in core services and hardware segments, and emphasized its AI‑first solutions‑integrator strategy, including recent acquisitions such as Inspire11. CEO Joyce Mullen announced her retirement, and a search for a new leader is underway, adding a layer of strategic transition.
For the full year, Insight reiterated its adjusted diluted EPS guidance of $9.60 to $9.90, slightly below consensus estimates of $9.74. The guidance reflects a cautious outlook amid macroeconomic headwinds but confidence in the company’s strategic pivot to higher‑margin offerings. The company’s ABL facility remains at $1.5 billion, with $1.1 billion of debt outstanding, contributing to the higher interest expense reported in the quarter.
The results underscore disciplined cost management amid expansion activities and provide a clear view of Insight’s current financial health and its trajectory toward the 2025 guidance.
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