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- **Revenue Beat**: Q3 2025 revenue $12.6B (+7.2% YoY), driven by 13% growth in client/endpoints and SMB sequential growth.
- **AI Breakthrough**: Xvantage platform contributed $100M+ incremental revenue, IDA non-U.S. sales up 100% QoQ, new AI agent announced.
- **Strong Earnings**: Non-GAAP EPS $0.72 (high end of guidance), gross profit $870M (+3.4% YoY).
- **Q4 Guidance**: $14B-$14.35B sales, EPS $0.85-$0.95, with AI PCs poised to extend refresh cycle into 2026.
- **Customer Momentum**: SMB growth accelerating, 3rd straight quarter of sequential expansion; enterprise AI PoCs gaining traction.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue of $12.6 billion, up 7.2% YoY, driven by strong demand in client and endpoint solutions (+13% FX-neutral) and servers/storage. SMB segment grew sequentially for 3rd quarter.
- **AI Momentum**: Xvantage platform contributed $100M+ incremental revenue, with IDA-driven non-U.S. revenue up 100% QoQ. New enterprise AI agent (Sales Briefing Assistant) powered by Google's Gemini LLM announced.
- **Customer Expansion**: Enterprise sales robust, while SMB category achieved 3rd straight quarter of sequential growth. Enable AI program engaged thousands of customers, with AI content views leading on Xvantage.
- **Challenges**: Advanced solutions down 4.5% YoY due to softness in virtualization and infrastructure software, partially offset by server/storage growth. Networking growth modest due to AI PoC activity.

**【CFO Financial Commentary】**
- **Financial Highlights**: Non-GAAP EPS $0.72 (high end of guidance), GAAP net income $420M. Gross profit $870M (+3.4% YoY), gross margin 6.9% (down 29bps YoY due to lower-margin AI-related sales mix).
- **Cost Control**: Operating expenses $646M (5.1% of sales vs 5.3% YoY), benefiting from Xvantage automation and restructuring. Adjusted EBITDA $342M (+3% YoY).
- **Balance Sheet**: Free cash flow outflow $110M (seasonal investment), cash $830M, debt $3.8B (gross leverage 2.8x). Q4 guidance: $14B-$14.35B sales, EPS $0.85-$0.95.
- **Ransomware Impact**: 1-1.5% top line impact, $0.02-0.03 EPS hit, but operations restored quickly with minimal disruption.

**【Q&A Key Highlights】**
- **Margins & Mix**: Q4 gross margin ~6.8% (midpoint), driven by seasonal hardware sales and SMB growth. Longer-term AI PCs could extend refresh cycle beyond 2025.
- **Cash Flow**: Q4 expected to be solid cash flow quarter, offsetting Q3 seasonal investment. Inventory reduced sequentially as large projects sold through.
- **Customer Sentiment**: SMB growth accelerating despite macro challenges, with cloud, networking, and cybersecurity leading categories. Enterprise customers at varying stages of AI PoCs, focusing on compute layer.
- **AI & Hardware**: 25% of PC shipments now AI-enabled, potential for smoother refresh cycle in 2026. Xvantage scaling globally with 3-minute cloud billing processes for partners.
- **Budget Flush**: Normal Q4 budgeting cycle expected, with SMB and enterprise both participating. No unusual pull-forward activity noted in memory market.

Ingram Micro Holding Corporation (INGM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

INGM

INGM fundamentals

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