Reports Strong Q4 Adjusted Earnings and Gross Margin Expansion; Provides Positive 2026 Outlook

summarizeSummary

Insight Enterprises reported strong Q4 adjusted earnings and significant gross margin expansion, driven by services growth, and issued positive adjusted EPS guidance for 2026.

check_boxKey Events

• Strong Q4 Adjusted EPS Growth

  Adjusted diluted earnings per share for the fourth quarter increased 11% year-over-year to $2.96.

• Significant Q4 Gross Margin Expansion

  Gross margin for the fourth quarter expanded by 220 basis points to 23.4%, contributing to a 9% increase in gross profit to $478.4 million.

• Positive 2026 Adjusted EPS Guidance

  For the full year 2026, the company expects adjusted diluted EPS (excluding stock-based compensation) to be between $11.00 and $11.50, representing approximately 5% growth at the midpoint.

• Full Year GAAP Net Earnings Decline

  Consolidated net earnings for the full year 2025 decreased 37% year-over-year to $157.3 million, primarily impacted by a net loss on revaluation of warrant settlement liabilities.

auto_awesomeAnalysis

Insight Enterprises reported a strong fourth quarter, with adjusted diluted earnings per share increasing 11% year-over-year to $2.96 and gross margin expanding by 220 basis points to 23.4%. This performance was driven by robust growth in Cloud gross profit (up 11%) and Insight Core services gross profit (up 16%). While full-year GAAP net earnings decreased significantly by 37% to $157.3 million, primarily due to a net loss on revaluation of warrant settlement liabilities and higher interest expense, the full-year adjusted diluted EPS still saw a modest 2% increase to $9.87. The company provided a positive outlook for full-year 2026, expecting adjusted diluted EPS (excluding stock-based compensation) to be between $11.00 and $11.50, representing approximately 5% growth at the midpoint compared to 2025. This indicates continued operational momentum and strategic focus on higher-margin services.