Insight Raises 2026 Outlook After Sales Growth Accelerates

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter net sales reached $2.4 billion, up 22%, and the company now expects adjusted diluted earnings of $13.55 to $13.75 a share.

Insight Enterprises (NSIT), the IT solutions integrator, reported third-quarter net sales of $2.4 billion, up 22% from a year earlier, accelerating from 15% growth in the second quarter and 1% in the first.

Gross profit rose 20% to $523.2 million. Gross margin contracted 30 basis points to 21.4%, reversing a 60-basis-point expansion to 21.7% in the prior quarter.

GAAP results moved the other way. Earnings from operations fell 26% to $68.7 million, or 2.8% of sales, after a 51% increase to $131.0 million in the second quarter. Consolidated net earnings decreased 57% to $22.2 million, and diluted earnings were $0.74 a share. The company said the operating-earnings decline was primarily attributable to higher earnout valuation adjustments and higher severance and restructuring costs, including a voluntary separation program started in the third quarter of 2026. Severance and restructuring expenses, net, were $25.7 million versus $5.4 million a year earlier.

Adjusted results still grew, though more slowly than in the second quarter. Adjusted earnings from operations increased 23% to $166.9 million, or 6.8% of sales. Adjusted consolidated net earnings rose 28% to $107.3 million, and adjusted diluted earnings were $3.59 a share, up 34%. Second-quarter adjusted diluted earnings had grown 44%.

President and Chief Executive Officer Jack Azagury said the company delivered broad-based momentum, with infrastructure hardware gross profit increasing more than 50% and more than 20% gross profit growth across Cloud and Insight Core Services.

Hardware product net sales increased 32% year over year and accounted for 62% of sales. Software product net sales decreased 3%. Services net sales increased 20%.

North America net sales increased 22% to $2.0 billion. North America gross margin contracted 130 basis points to 19.8%. North America earnings from operations increased 1% to $84.1 million.

EMEA net sales increased 6% to $338.0 million. EMEA gross margin expanded 360 basis points to 26.8%, and EMEA earnings from operations increased 53% to $6.9 million.

APAC was the fastest-growing region. Net sales increased 104% to $120.0 million, accelerating from 46% growth in the second quarter. APAC gross profit rose 121% to $39.0 million, with a 32.5% margin. APAC earnings from operations swung to a $22.3 million loss from a year-earlier profit, as selling and administrative expenses more than doubled. Adjusted earnings from operations in APAC increased 156% to $16.5 million.

Selling and administrative expenses increased 29% year over year. The company said the increase primarily reflected higher earnout valuation adjustments, increased variable compensation tied to stronger performance, and expenses associated with acquisitions completed in the fourth quarter of 2025 that were not present in the comparable prior-year period.

Cash flows provided by operating activities were $128.4 million.

For the full year 2026, Insight raised gross profit growth expectations to 12.5% to 14.0% and said it expects gross margin of approximately 21.5%. It now expects adjusted diluted earnings of $13.55 to $13.75 a share, about 27% growth at the $13.65 midpoint versus full-year 2025 adjusted diluted earnings of $10.75 a share. The outlook assumes interest and other expenses of approximately $95 million, an effective tax rate of approximately 25.5%, capital expenditures of about $20 million to $30 million, and an average share count of approximately 30.0 million shares.