Ingram Micro Holding Corporation (INGM) Earnings & Analysis

Latest quarter

Ingram Micro reported Q3 FY2026 revenue of $15.2 billion, above the $13.8 billion consensus. Adjusted earnings per share were $0.91, above the $0.78 consensus. Revenue increased 20.8% from $12.6 billion a year earlier, and diluted earnings per share rose to $0.57 from $0.42.

The company’s filing attributed the sales increase to growth in every geographic segment. Advanced Solutions sales rose 40%, with GPU and AI infrastructure among the drivers; Client and Endpoint Solutions increased 10%. Ingram Micro said cloud sales rose 30% on a currency-neutral basis.

Gross margin fell to 6.55% from 6.90%; the filing attributed much of the decline to a shift toward lower-margin GPU and AI infrastructure products. Operating margin nevertheless rose to 1.93% from 1.77%, as selling and administrative costs fell as a share of sales. Ingram Micro reported free cash flow of $211.2 million, compared with −$175.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Paul Bay said demand extended across the company’s businesses and customer segments. Asked about the durability of AI infrastructure sales, he said Ingram Micro could see products in its pipeline but that “sometimes there’s a bit of a flush at the end of the quarter.” He also said networking, storage and servers grew excluding AI deals.

On PCs, Bay said revenue grew year over year even though unit volumes declined: higher average selling prices offset the unit decline. He said the refresh cycle should extend into Q4, though demand would be lower than in Q3. Enterprise customers were investing in AI data centers and infrastructure modernization, while smaller businesses were more price-sensitive and some were extending PC replacement cycles, he said.

Michael Zilis said GPU and AI infrastructure sales exceeded $1.8 billion in Q3. He said those transactions carry lower gross margins but have a low cost to serve. Excluding them in both periods, gross margin was 7.06%, down 4 basis points year over year. Zilis also said automation, restructuring and the mix of lower-cost-to-serve AI infrastructure business helped reduce operating expenses as a share of sales.

Bay said Ingram Micro is building on its XVantage platform to use customer and transaction data for demand generation. Across platform countries, he said, average revenue per customer rose 39% year over year, while self-service represented nearly 70% of orders. He also said the company is returning to supply-chain services using capacity in existing facilities.

Asked about cash flow, Zilis said Q4 cash flow should be positive, but “getting to positive free cash flow for the year may be challenging” because growth requires working-capital investment. On supply constraints, he said the Q4 outlook incorporates both price increases and offsets from longer product delivery times and demand elasticity.

Guidance

Paul Bay said Ingram Micro raised its Q4 and full-year 2026 guidance from the outlook provided in September. For Q4, Michael Zilis guided to net sales of $17.5 billion to $17.9 billion and non-GAAP diluted earnings per share of $1.05 to $1.15. He said the Q4 guidance includes an extra week in the fiscal year.