Ingram Micro's Q2 2025: Discrepancies in Cloud Growth, SMB Recovery, and AI Hardware Trends

Cloud business growth rate, SMB growth and recovery, PC refresh and cycle stage, Xvantage impact on SMB growth, and AI hardware sales and customer segments are the key contradictions discussed in Ingram Micro's latest 2025Q2 earnings call.



Revenue Growth and Product Performance:
- Ingram Micro reported net sales of $12.79 billion, up 10.9% year-over-year in U.S. dollars and 10.2% on an FX-neutral basis.
- Growth was driven by strong demand in client and endpoint solutions, particularly in desktop, notebook, and smartphone categories, as well as strength in servers, storage, and cybersecurity, and emerging AI solutions, particularly in Asia Pacific markets.

Regional Growth Dynamics:
- Net sales in Asia Pacific grew by 17.3% year-over-year on an FX-neutral basis, while North America saw a 13.8% increase, and EMEA returned to growth with a 4.8% increase.
- The strong performance in Asia Pacific was attributed to growth in lower-margin mobility devices, while North America's growth was driven by demand for servers, storage, and cybersecurity solutions. EMEA growth was led by double-digit growth in cloud solutions.

Platform Strategy and Xvantage Impact:
- Ingram Micro emphasized its platform strategy, with Xvantage enabling improved operational efficiency and customer engagement, as shown by a 200% increase in self-service orders year-over-year.
- The platform's capabilities, such as AI-driven insights and the Intelligent Digital Assistant (IDA), have significantly contributed to customer success, particularly in the SMB market, where growth returned to low single digits.

Divestiture and Strategic Focus:
- Ingram Micro initiated the divestiture of non-core operations, including the sale of CloudBlue, expected to close in Q3.
- These divestitures are part of the company's ongoing portfolio review, aimed at enhancing operational effectiveness and amplifying core strengths, aligning with its long-term vision and strategic investments in cloud-related initiatives.