INSIGHT ENTERPRISES INC (NSIT): Results of Operations and Financial Condition
INSIGHT ENTERPRISES INC (NSIT) filed an SEC Form 8-K — Results of Operations and Financial Condition. E XHIBIT 99.1 FOR IMMEDIATE RELEASE NASDAQ: NSIT INSIGHT ENTERPRISES, INC. REPORTS SECOND QUARTER RESULTS Strong quarter led by AI momentum driving growth in cloud, infrastructure and services; Raising guidance for full year CHANDLER, AZ – August 6, 2026 – Insight Enterprises, In
How this was made
The 30-second read
Why it matters
Traders can update NSIT’s earnings trajectory using the disclosed Q2 profitability metrics and the stated full-year guidance raise, with attention to segment and regional mix.
Market read
A same-day earnings and guidance update with multiple margin and EPS improvements increases the probability of upward revisions to FY estimates.
What to watch
The release notes software product net sales declined 6% YoY, and EMEA earnings from operations fell 15% YoY, which could limit upside if those trends persist.
Strong quarter led by AI momentum driving growth in cloud, infrastructure and services; Raising guidance for full year
Consolidated net sales increased 15%, gross profit increased 18%, gross margin expanded 60 basis points to 21.7%, and Adjusted diluted earnings per share increased 44%. The company raised its full-year gross profit growth and Adjusted diluted earnings per share expectations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated net salesGAAP | $2.4 billion | – | increased 15%, year over year |
| Product net salesGAAP | increased 13%, year over year | – | increased 13%, year over year |
| Services net salesGAAP | increased 21%, year over year | – | increased 21%, year over year |
| Software product net salesGAAP | decreased 6%, year to year | – | decreased 6%, year to year |
| Hardware product net salesGAAP | increased 21%, year over year | – | increased 21%, year over year |
| Consolidated net sales excluding the effects of fluctuating foreign currency exchange ratesnon-GAAP | increased 14%, year over year | – | increased 14%, year over year |
| Consolidated gross profitGAAP | $521.6 million | – | increased 18%, year over year |
| Consolidated gross marginGAAP | 21.7% | – | expanded 60 basis points compared to the second quarter of 2025 |
| Product gross profitGAAP | increased 5%, year over year | – | increased 5%, year over year |
| Services gross profitGAAP | increased 27%, year over year | – | increased 27%, year over year |
| Cloud gross profitGAAP | increased 39%, year over year | – | increased 39%, year over year |
| Insight Core services gross profitGAAP | increased 21%, year over year | – | increased 21%, year over year |
| Consolidated gross profit excluding the effects of fluctuating foreign currency exchange ratesnon-GAAP | increased 17%, year over year | – | increased 17%, year over year |
| Selling and administrative expensesGAAP | increased 9%, year to year | – | increased 9%, year to year |
| Adjusted selling and administrative expensesnon-GAAP | increased 12%, year to year | – | increased 12%, year to year |
| Earnings from operationsGAAP | $131.0 million, or 5.5% of net sales | – | increased 51% compared to the second quarter of 2025 |
| Adjusted earnings from operationsnon-GAAP | $180.6 million, or 7.5% of net sales | – | increased 31% year over year |
| Consolidated earnings from operations excluding the effects of fluctuating foreign currency exchange ratesnon-GAAP | increased 50%, year over year | – | increased 50%, year over year |
| Adjusted consolidated earnings from operations excluding the effects of fluctuating foreign currency exchange ratesnon-GAAP | increased 30% | – | increased 30% |
| Consolidated net earningsGAAP | $77.6 million, or 3.2% of net sales | – | up 65% year over year |
| Adjusted consolidated net earningsnon-GAAP | $116.4 million, or 4.9% of net sales | – | up 35% year over year |
| Diluted earnings per shareGAAP | $2.57 | – | up 76% year over year |
| Adjusted diluted earnings per sharenon-GAAP | $3.86 | – | up 44% year over year |
| Adjusted diluted earnings per share excluding the effects of fluctuating foreign currency exchange ratesnon-GAAP | increased 43%, year over year | – | increased 43%, year over year |
| Adjusted EBITDAnon-GAAP | $190.4 million | – | increased 29% year over year |
| Effective tax rateGAAP | 27.0% | – | – |
| Cash flows used in operating activitiesGAAP | $12.2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaProduct net sales increased 14%, year over year, to $1.6 billion; services net sales increased 19%, year over year, to $368.2 million. Gross profit increased 16%, year over year, to $397.7 million, with 20.5% gross margin. | $1.9 billion | – | increased 15%, year over year |
| EMEAGross profit increased 13%, year over year, to $93.4 million, with 24.9% gross margin. Earnings from operations decreased 15%, year to year, to $9.5 million, or 2.5% of net sales. | $375.2 million | – | increased 8%, year over year |
| APACGross profit increased 67%, year over year, to $30.5 million, with 35.6% gross margin. Earnings from operations increased 34%, year over year, to $8.9 million, or 10.4% of net sales. | $85.6 million | – | increased 46%, year over year |
full year 2026 outlook
- Gross marginbetween 21.5% and 22.0%
- Tax rate25.5% to 26.5% for the full year
- NoteGross profit growth expectations of 8% to 10%
- NoteAdjusted diluted earnings per share between $12.20 and $12.70
- NoteInterest and other expenses of approximately $95 million
- NoteCapital expenditures between approximately $20 million and $30 million
- NoteAn average share count for the full year of approximately 30.0 million shares
- NoteOutlook excludes acquisition-related intangibles amortization expense of approximately $83.4 million, excludes non-cash stock-based compensation expense and assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net, no significant change in debt instruments, and no significant change in the macroeconomic environment, whether due to tariffs or otherwise.
What drove it
- AI demand drove strength in cloud, infrastructure, and services.
- Cloud gross profit increased 39%, year over year.
- Insight Core services gross profit increased 21%, year over year.
- Hardware product net sales increased 21%, year over year.
- North America and APAC net sales increased 15% and 46%, respectively, year over year.
- Consolidated gross margin expanded 60 basis points to 21.7% of net sales.
- Adjusted earnings from operations increased 31% to $180.6 million, or 7.5% of net sales.
Concerns
- Software product net sales decreased 6%, year to year.
- EMEA earnings from operations decreased 15%, year to year, and Adjusted earnings from operations decreased 2%, year to year.
- Cash flows used in operating activities were $12.2 million.
- The full-year outlook assumes no significant change in the macroeconomic environment, whether due to tariffs or otherwise.
What to watch
- Full-year gross profit growth expectations of 8% to 10%.
- Full-year gross margin guidance of between 21.5% and 22.0%.
- Full-year Adjusted diluted earnings per share guidance of between $12.20 and $12.70.
- EMEA earnings from operations performance after the second-quarter decrease of 15%, year to year.
- Software product net sales after the second-quarter decrease of 6%, year to year.
- Capital expenditures between approximately $20 million and $30 million.
Balance sheet and cash flow
- Cash flows used in operating activities were $12.2 million.
Analysis
Insight reported a strong second quarter of 2026, with consolidated net sales of $2.4 billion increasing 15% year over year and gross profit of $521.6 million increasing 18%. Gross margin expanded 60 basis points to 21.7%, showing that gross profit grew faster than sales. The company attributed the quarter to AI demand and strength in cloud, infrastructure, and services.
Mix was favorable in services and hardware. Services net sales increased 21%, year over year, while hardware product net sales increased 21%; software product net sales decreased 6%. Services gross profit increased 27%, cloud gross profit increased 39%, and Insight Core services gross profit increased 21%. North America generated $1.9 billion of net sales and APAC generated $85.6 million, with APAC net sales increasing 46% and segment gross profit increasing 67%.
Operating leverage was substantial. Selling and administrative expenses increased 9%, year to year, versus 15% consolidated net-sales growth. GAAP earnings from operations increased 51% to $131.0 million, or 5.5% of net sales, and Adjusted earnings from operations increased 31% to $180.6 million, or 7.5% of net sales. Consolidated net earnings increased 65% to $77.6 million and Adjusted diluted earnings per share increased 44% to $3.86. EMEA is the key exception: segment net sales increased 8%, but GAAP earnings from operations decreased 15% and Adjusted earnings from operations decreased 2%.
The company raised full-year 2026 gross profit growth expectations to 8% to 10% and expects gross margin between 21.5% and 22.0%. It now expects Adjusted diluted earnings per share between $12.20 and $12.70. The outlook assumes interest and other expenses of approximately $95 million, an effective tax rate of 25.5% to 26.5%, capital expenditures between approximately $20 million and $30 million, and an average share count of approximately 30.0 million shares.
Cash conversion warrants attention because cash flows used in operating activities were $12.2 million despite the earnings growth. The filing provided no capital-return, cash-balance, debt-balance, free-cash-flow, or GAAP full-year earnings-per-share guidance figures. Management also specified that the outlook assumes no significant change in the macroeconomic environment, whether due to tariffs or otherwise.
Management, verbatim
I am pleased to report another strong quarter for Insight. Building on a strong first quarter, we delivered broad-based growth across our business and generated strong operating leverage, with strength in cloud, infrastructure, and services, driven by AI demand.
Jack Azagury, President and Chief Executive Officer
This resulted in total gross profit growth of 18%, adjusted earnings from operations growth of 31%, and adjusted diluted earnings per share growth of 44%.
Jack Azagury, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so prior-guidance comparisons are unavailable.
- Prior-year dollar amount for consolidated net sales was not provided.
- Prior-year diluted earnings per share and Adjusted diluted earnings per share amounts were not provided.
- Prior-quarter comparisons were not provided for reported metrics.
- Cash balance was not provided.
- Debt balance was not provided.
- Free cash flow was not provided.
- Share repurchases and dividends were not provided.
- GAAP full-year 2026 net earnings, diluted earnings per share, and selling and administrative expenses guidance were not provided.
- The company stated it is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full-year 2026 forecast.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The company filed an SEC 8-K with Exhibit 99.1 covering Q2 2026 results and commentary on AI-driven growth across cloud, infrastructure, and services.
Ticker impact
Insight Enterprises reported Q2 results with 15% YoY net sales growth, gross margin expansion to 21.7%, and raised full-year guidance.
Likely positive follow-through as traders reprice FY outlook, though magnitude depends on how the raised guidance compares to Street expectations.
The filing discloses multiple profitability and EPS increases (net earnings +65% YoY, adj. EPS +44% YoY) and explicitly states guidance is raised, which is actionable for positioning.
Market effects
Supports the broader IT services and cloud infrastructure reseller narrative that AI demand is translating into higher services mix and margins.
APAC shows the fastest growth (net sales +46% YoY) while EMEA profitability declined, which may shift regional sentiment within the sector.
Reinforces demand signals for enterprise cloud and infrastructure spending, potentially affecting peers’ read-through expectations.
Counterpoint
Services growth and margin expansion may partly reflect mix and timing, so the raised guidance could be harder to sustain if AI-related demand normalizes.
Key entities
- companyInsight Enterprises, Inc.
NASDAQ-listed IT solutions provider reporting Q2 2026 results and raising full-year guidance.
- executiveJack Azagury
President and CEO cited for commentary on AI momentum driving growth.
