Reports Strong Q4 Adjusted Earnings and Gross Margin Expansion; Provides Positive 2026 Outlook
NSIT is trading near its 52-week low of $77.1 (8.2% above the low).
Summary
Insight Enterprises reported strong Q4 adjusted earnings and significant gross margin expansion, driven by services growth, and issued positive adjusted EPS guidance for 2026.
Key Events · Earnings and Guidance · NSIT
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Strong Q4 Adjusted EPS Growth
Adjusted diluted earnings per share for the fourth quarter increased 11% year-over-year to $2.96.
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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.
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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.
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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.
Analysis · NSIT · Trade & Services
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.
At the time of this filing, NSIT was trading at $83.39 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $77.10 to $181.92. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.