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- **Adjusted EPS growth**: 11% to $2.43, supported by cloud and expense control.
- **Cloud momentum**: Gross profit +7%, offsetting macro challenges.
- **Strategic M&A**: $342M acquisitions to enhance AI and security.
- **2026 outlook**: AI adoption, PC refresh, and services recovery.
- **Risk**: Large enterprise spending delays, macro uncertainty.

**【CEO Summary Section】**
- Adjusted diluted earnings per share (EPS) grew 11% to $2.43, driven by strong cloud performance and disciplined expense management.
- Commercial revenue increased 5%, offsetting a 3% decline in core services due to macro uncertainty.
- Record gross margin of 21.7% was achieved, with cloud gross profit up 7%.
- Acquisitions of Inspire 11 ($212M) and Sekuro ($130M) to bolster AI and cybersecurity capabilities.
- 2026 outlook includes AI adoption acceleration, PC refresh cycle, and services growth.

**【CFO Financial Commentary】**
- Net revenue of $2B (-4% YoY) due to on-prem software migration; hardware revenue +1%.
- Adjusted EBITDA of $137M (+6%), with margin expansion to 6.8%.
- Cloud gross profit $130M (+7%), offsetting hardware gross profit decline (-5%).
- Cash flow from operations $249M; share repurchases $75M; $149M remaining under buyback program.
- 2025 guidance: adjusted EPS $9.60-$9.90, gross margin ~21%.

**【Q&A Highlights】**
- Large enterprise spending delays persist, but services bookings improving.
- Cloud growth (+7%) resilient despite partner program changes; 2026 cloud gross profit expected flat/slightly up.
- Acquisitions of Inspire 11 and Sekuro to be EBITDA accretive by end-2026, EPS dilutive in 2025.
- AI strategy focuses on outcome-based pricing, automation, and client zero governance framework.
- Hardware sluggishness due to macro uncertainty; PC refresh cycle expected to continue.


Insight Enterprises, Inc. (NSIT) Q3 2025 Earnings Call Transcript

- **Record Margins in Q2**: Gross margin 21.1%, EBITDA margin 6.2%, both Q2 highs. Hardware revenue +2%, commercial clients +8%.
- **AI-Driven Growth**: 200+ AI assessments, $7.5M savings for retail client. Gartner recognizes as generative AI visionary.
- **Financial Resilience**: Adjusted EPS $2.45, flat YoY. H2 guidance: gross profit flat, EPS $9.70-$10.10. OpEx growth slower than revenue.
- **Key Risks**: Partner program headwinds ($70M gross impact in 2025), large enterprise spending delays, macroeconomic uncertainty.
- **Strategic Focus**: AI-first solutions, M&A in cloud/data, and internal AI adoption for efficiency gains.

**【CEO Summary Section】**
- **Q2 Performance Highlights**: Total gross margin of 21.1% and adjusted EBITDA margin of 6.2%, both Q2 records. Hardware revenue grew 2% (4% in North America), with commercial clients up 8% for the fifth consecutive quarter. Cloud gross profit declined 5% due to partner program changes.
- **AI Strategy Momentum**: Deployed hundreds of AI agents internally and for clients, completed over 200 AI assessments, and achieved 7.5M annual savings for a retail client. Named an "emerging visionary" by Gartner for generative AI services.
- **Future Outlook**: Cautiously optimistic for H2 with normalized partner program impacts. Hardware demand expected to grow, services to improve modestly, and cloud to stabilize. Focus on M&A in cloud, data, AI, edge, and security.

**【CFO Financial Commentary】**
- **Q2 Financials**: Net revenue $2.1B (-3% YoY), adjusted EPS $2.45 (flat YoY). Gross profit $442M (-2%), driven by cloud headwinds. Adjusted EBITDA $138M (-2%), margin 6.6%. Cash flow from operations $177M, with $300-400M expected annually.
- **Guidance 2025**: Gross profit flat YoY, adjusted EPS $9.70-$10.10. Hardware gross profit to grow mid-single digits, core services low single digits, cloud flat to down. OpEx growth slower than gross profit.
- **Liquidity**: $1.3B total debt, $224M remaining under share repurchase program. Settled $333M convertible notes, 1.2M warrants outstanding.

**【Q&A Key Highlights】**
- **Gross Profit Growth Drivers**: Hardware acceleration (Q2 +2%), cloud IaaS/SaaS growth, and core services modest pickup. No material pull-in effects seen.
- **Cost Management**: OpEx down 3% YoY in Q2, 4% in H1. Productivity gains from AI adoption (e.g., 100%+ software dev efficiency). Headcount held flat while services grow.
- **Services Delays**: Large enterprises delaying infrastructure projects due to macro uncertainty and AI investment prioritization. AI MVP projects growing but small-scale.
- **Cloud Growth**: Underlying IaaS/SaaS +17% YoY in Q1, similar pace in Q2. H2 cloud performance to improve with mid-market pivot and easier comps.
- **SADA Performance**: Services expansion outperforming expectations, cross-sell opportunities with multi-cloud clients.
- **Public Sector Impact**: State/local gov and higher ed revenue down due to netting, but services momentum strong. Federal contract shifts creating new opportunities.
- **AI Talent Strategy**: Dual focus on M&A (e.g., cloud/data/AI acquisitions) and internal upskilling programs for existing employees.


Insight Enterprises, Inc. (NSIT) Q2 2025 Earnings Call Transcript

- **Hardware Recovery**: 1% YoY growth in hardware revenue, first in 10 quarters, driven by servers/storage.\n- **Cloud Resilience**: SaaS/IaaS +17% YoY despite enterprise cloud pivot.\n- **Profitability Pressure**: Adjusted EPS down 13% YoY, but 5% opex reduction cushions impact.\n- **FY25 Outlook**: Hardware +mid-single, cloud flat/down, services recovery in H2.\n- **AI Growth Engine**: 17% SaaS/IaaS growth; AI solutions like Sherlock/Google Cloud expanding.\n- **Risk Management**: Tariffs >25% could mute demand; disciplined cost control (+5% opex reduction).

**【CEO Opening Remarks】**
- Q1 2025 revenue was $2.1 billion, down 12% YoY due to on-prem software decline and partner program changes. Hardware revenue increased 1% YoY, the first growth in 10 quarters, driven by servers and storage. Cloud gross profit (excluding partner changes) grew 17% YoY.\n- Gross margin improved 80bps to 19.3% due to lower on-prem software mix. Adjusted EBITDA was $111 million (-16% YoY) and adjusted EPS was $2.06 (-13% YoY).\n- FY25 outlook: hardware gross profit +mid-single digits, cloud flat/slightly down, services recovery in H2.\n\n**【CFO Financial Details】**
- Q1 GAAP net income: $420 million. Non-GAAP EPS: $2.06 (vs. $2.38 YoY).\n- Hardware gross profit down 1% YoY due to networking mix. Devices gross profit +mid-single digits, infrastructure -high-single digits.\n- Cloud gross profit (-3% YoY) impacted by Microsoft enterprise agreements and Google Cloud pivot to mid-market.\n- Operating expenses (-5% YoY) driven by Q4 restructuring.\n- FY25 guidance: gross profit +low-single digits, EPS $9.70-$10.10.\n\n**【Q&A Key Takeaways】**
1. **Hardware Momentum**: Q2 bookings indicate continued device refresh and AI infrastructure spending.\n2. **Services Lag**: Large enterprises delaying projects amid macro uncertainty.\n3. **Tariff Impact**: OEMs cautious on pricing; 10% tariffs could be neutral, >25% would mute demand.\n4. **Cost Management**: Disciplined SG&A growth <GP; focus on sales/technical talent.\n5. **AI Investment**: Expanding AI solutions (e.g., Sherlock/Google Cloud) with 17% SaaS/IaaS growth.\n6. **Acquisition Integration**: Recent acquisitions driving +14.9% ROIC (vs. 18% YoY).

Insight Enterprises (NSIT)-1 May 25-2025 Q1 Earnings call transcript

- **Q4 Growth Drivers**: 12% Core Services growth, hardware devices up mid-single digits, gross margin +170bps to 21.2%.
- **2025 Outlook**: Low single-digit gross profit growth, EPS $9.70-$10.10. Hardware refresh in 2025-2026, cloud flat/down due to $70M enterprise agreement impact.
- **Strategic Wins**: New Microsoft, Google, AWS partnerships. Cross-sell programs and AI infrastructure investments driving multi-cloud solutions.
- **Financial Discipline**: $25M SG&A savings, OpEx growth slower than gross profit. 2025 cash flow $300-400M, settling convertible notes to reduce financing costs.

**【CEO Summary Section】**
- **Q4 Financial Highlights**: Gross profit increased 1%, driven by 12% growth in Insight Core Services and modest hardware/cloud gains. Hardware gross profit grew for the first time in 8 quarters, with devices up mid-single digits.
- **2025 Outlook**: Anticipate device refresh cycle momentum, with corporate and large enterprise clients delaying until 2025-2026. Cloud and services growth expected, with $70M impact from Google/Microsoft enterprise agreement changes. AI infrastructure investments to support hybrid/multi-cloud needs.
- **Strategic Initiatives**: Cross-sell programs, nearshore/offshore capabilities, and e-commerce platform upgrades to enhance client engagement. New partnerships with Microsoft, Google, and AWS strengthen cloud/data/AI solutions.

**【CFO Financial Commentary】**
- **Q4 Results**: Net revenue $2.1B (-7%), adjusted EPS $2.66 (-11%). Gross margin expanded 170bps to 21.2%. Cash flow from operations $215M, with $633M annualized.
- **2024 Full Year**: Gross profit up 6%, gross margin +210bps to 20.3%. Cloud gross profit +21%, Core Services +15%. Adjusted EBITDA margin +50bps to 6.2%.
- **2025 Guidance**: Gross profit growth low single digits, adjusted EPS $9.70-$10.10 (+0-4%). Hardware gross profit expected mid-single digits, Core Services 16-20% growth. Cloud flat to down due to enterprise agreement declines, but mid-teens growth excluding $70M impact.
- **Liquidity**: $864M debt, $1.8B ABL capacity. Settling $333M convertible notes via ABL, reducing long-term financing costs.

**【Q&A Key Themes】**
- **Cloud Program Changes**: $70M impact from Google/Microsoft enterprise agreements, offset by CSP pivot and cloud commerce platform improvements. Microsoft supporting CSP as hero motion for SMBs.
- **OpEx Management**: $25M annualized SG&A reductions, headcount focus on sales/tech talent. 2025 OpEx growth slower than gross profit, with acquisitions nearing anniversary normalization.
- **Hardware Growth**: Commercial device demand up 3Q, public sector improvement. Expect corporate/enterprise refresh in 2H25, servers/networking equipment upgrades driving infrastructure growth.
- **Tariffs & Risks**: Minimal tariff impact modeled, with pass-through to clients. 2025 outlook assumes stable macroeconomic conditions, no material tariff changes.
- **Cash Flow**: 2025 cash flow $300-400M, returning to historical range as hardware growth resumes. 2024 buybacks $200M, $300M remaining under share repurchase program.

Insight Enterprises (NSIT)-6 Feb 25-2024 Q4 Earnings call transcript

Insight Enterprises (NSIT)-31 Oct 24-2024 Q3 Earnings call transcript

Insight Enterprises (NSIT)-1 Aug 24-2024 Q2 Earnings call transcript

Insight Enterprises (NSIT)-2 May 24-2024 Q1 Earnings call transcript

Insight Enterprises (NSIT)-15 Feb 24-2023 Q4 Earnings call transcript

Insight Enterprises (NSIT)-3 Aug 23-2023 Q2 Earnings call transcript

Insight Enterprises (NSIT)-2 May 23-2023 Q1 Earnings call transcript

Insight Enterprises (NSIT)-9 Feb 23-2022 Q4 Earnings call transcript

Insight Enterprises (NSIT)-3 Nov 22-2022 Q3 Earnings call transcript

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Insight Enterprises (NSIT)-10 Feb 22-2021 Q4 Earnings call transcript

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Insight Enterprises (NSIT)-6 Nov 19-2019 Q3 Earnings call transcript

Insight Enterprises (NSIT)-8 Aug 19-2019 Q2 Earnings call transcript

Insight Enterprises (NSIT)-6 May 19-2019 Q1 Earnings call transcript

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Insight Enterprises (NSIT)-10 Nov 18-2018 Q3 Earnings call transcript

Insight Enterprises (NSIT)-1 Aug 18-2018 Q2 Earnings call transcript

Insight Enterprises (NSIT)-2 May 18-2018 Q1 Earnings call transcript

Insight Enterprises (NSIT)-14 Feb 18-2017 Q4 Earnings call transcript

Insight Enterprises (NSIT)-7 Nov 17-2017 Q3 Earnings call transcript

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