Fiscal third quarter 2026
Filed Oct 29, 2026Ingram Micro Reports Record Q3 2026 Results, with Solid Double-Digit Growth in Net Sales and Net Income and Strong Cash Flow Generation; Raised Full Year Guidance from September Capital Markets Day
Net sales increased 20.8%, GAAP net income increased 31.8%, adjusted income from operations increased 24.9%, and the Company generated $251.4 million of operating cash flow versus $146.0 million used in the prior fiscal third quarter. Q4 guidance calls for net sales of $17.5 billion to $17.9 billion and non-GAAP diluted EPS of $1.05 to $1.15.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, thirteen weeks ended September 26, 2026GAAP | $15.22B | – | 20.8% |
| Cost of sales, thirteen weeks ended September 26, 2026GAAP | $14.22B | – | – |
| Gross profit, thirteen weeks ended September 26, 2026GAAP | $996.9M | – | 14.6% |
| Gross margin, thirteen weeks ended September 26, 2026GAAP | 6.55% | – | – |
| Selling, general and administrative expense, thirteen weeks ended September 26, 2026GAAP | $697.6M | – | – |
| Restructuring costs, thirteen weeks ended September 26, 2026GAAP | $5.56M | – | – |
| Total operating expenses, thirteen weeks ended September 26, 2026GAAP | $703.2M | – | – |
| Income from operations, thirteen weeks ended September 26, 2026GAAP | $293.8M | – | 31.4% |
| Income from operations margin, thirteen weeks ended September 26, 2026GAAP | 1.93% | – | – |
| Net income, thirteen weeks ended September 26, 2026GAAP | $131.1M | – | 31.8% |
| Basic earnings per share, thirteen weeks ended September 26, 2026GAAP | $ 0.57 | – | – |
| Diluted earnings per share, thirteen weeks ended September 26, 2026GAAP | $ 0.57 | – | 35.7% |
| Adjusted income from operations, thirteen weeks ended September 26, 2026non-GAAP | $322.0M | – | 24.9% |
| Adjusted income from operations margin, thirteen weeks ended September 26, 2026non-GAAP | 2.12% | – | – |
| Adjusted EBITDA, thirteen weeks ended September 26, 2026non-GAAP | $390.1M | – | – |
| Non-GAAP net income, thirteen weeks ended September 26, 2026non-GAAP | $210.6M | – | 24.8% |
| Non-GAAP diluted EPS, thirteen weeks ended September 26, 2026non-GAAP | $ 0.91 | – | 26.4% |
| Cash provided by operating activities, thirteen weeks ended September 26, 2026GAAP | $251.4M | – | – |
| Capital expenditures, thirteen weeks ended September 26, 2026GAAP | −$40.21M | – | – |
| Adjusted free cash flow, thirteen weeks ended September 26, 2026non-GAAP | $249.5M | – | – |
| Return on invested capital, thirteen weeks ended September 26, 2026non-GAAP | 7.2% | – | – |
| Adjusted return on invested capital, thirteen weeks ended September 26, 2026non-GAAP | 12.6% | – | – |
| Net sales, thirty-nine weeks ended September 26, 2026GAAP | $43.71B | – | – |
| Gross profit, thirty-nine weeks ended September 26, 2026GAAP | $2.88B | – | – |
| Income from operations, thirty-nine weeks ended September 26, 2026GAAP | $752.7M | – | – |
| Net income, thirty-nine weeks ended September 26, 2026GAAP | $340.8M | – | – |
| Diluted earnings per share, thirty-nine weeks ended September 26, 2026GAAP | $ 1.46 | – | – |
| Adjusted income from operations, thirty-nine weeks ended September 26, 2026non-GAAP | $864.7M | – | – |
| Adjusted EBITDA, thirty-nine weeks ended September 26, 2026non-GAAP | $1.08B | – | – |
| Non-GAAP net income, thirty-nine weeks ended September 26, 2026non-GAAP | $577.5M | – | – |
| Non-GAAP diluted EPS, thirty-nine weeks ended September 26, 2026non-GAAP | $ 2.48 | – | – |
| Cash provided by operating activities, thirty-nine weeks ended September 26, 2026GAAP | −$1.26B | – | – |
| Adjusted free cash flow, thirty-nine weeks ended September 26, 2026non-GAAP | −$1.24B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaA 61% increase in Advanced Solutions offerings, including networking and servers in the United States and GPU and AI-infrastructure product sets; Client and Endpoint Solutions increased by 7%, Other services increased by 114%, and Cloud-based Solutions increased by 21%. | $5.82B | – | 31.5% |
| EMEA24% growth in Advanced Solutions led by server and storage net sales and 39% growth in Cloud-based Solutions, partially offset by a 1% decline in Client and Endpoint Solutions. Foreign-currency translation had a negative impact of 1%. | $3.93B | – | 7.3% |
| Asia-PacificA 25% increase in Advanced Solutions, including GPU and AI-infrastructure product sets in China; Client and Endpoint Solutions increased by 21%, Cloud-based Solutions increased by 44%, and Other services increased by 39%. Foreign-currency translation had a negative impact of 2%. | $4.34B | – | 22.3% |
| Latin AmericaClient and Endpoint Solutions increased by 16%, Advanced Solutions increased by 17%, Cloud-based Solutions increased by 56%, and Other Services increased by 65%. Foreign-currency translation had a positive impact of 6%. | $1.13B | – | 16.7% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal fourth quarter 2026, fourteen weeks ended January 2, 2027 outlook
- Revenue$17.5 billion to $17.9 billion
- Tax rateapproximately 27% on a non-GAAP basis
- NoteGross profit of $ 1,075 to $ 1,115
- NoteNon-GAAP diluted EPS of $1.05 to $1.15
- Note231.7 million diluted shares outstanding
- NoteNet sales year-over-year increase of 17.6% to 20.3%
- NoteFiscal fourth quarter 2026 includes fourteen weeks of business while the prior fiscal fourth quarter included thirteen weeks.
- NoteFiscal years 2026-2029E targets: Net sales CAGR ~4% to 6%; Gross profit CAGR ~5% to 7%; Operating expenses (annual) ~4.4% to 4.8% of net sales; Non-GAAP net income CAGR ~11% to 13%; Adjusted free cash flow / adjusted EBITDA (annual) ~30% or more; Adjusted ROIC (four-year average) ~16% to 17%.
Capital returns
- The board declared a fourth quarter cash dividend of $0.088 per share on October 29, 2026, payable on November 23, 2026, to stockholders of record as of November 9, 2026.
- The dividend represents a 2.3% increase from the quarterly dividend of $0.086 per share paid in the third quarter of 2026 and 10.0% over prior year.
- Repurchase of Common Stock was $ (16,992) for the thirteen weeks ended September 26, 2026 and $ (121,992) for the thirty-nine weeks ended September 26, 2026.
- Dividends paid to stockholders were $ (22,834) for the thirteen weeks ended September 26, 2026 and $ (61,186) for the thirty-nine weeks ended September 26, 2026.
What drove it
- Global Advanced Solutions offerings increased by 40%, Client and Endpoint Solutions increased by 10%, Cloud-based Solutions increased by 31%, and Other services increased by 35%.
- The Company reported growth in net sales across each geographic segment, while foreign-currency translation did not have a notable impact on the consolidated year-over-year net sales comparison.
- Operating income growth reflected net sales growth coupled with leverage on operating expenses.
- Disciplined working capital management contributed to cash flow, with accounts payable financing investments in inventory and accounts receivable.
Concerns
- Gross margin was 6.55%, compared with 6.90% in the prior fiscal third quarter, largely reflecting growth in lower-margin, low cost-to-serve GPU and AI-infrastructure product sets.
- High sales growth requires investment in net working capital, particularly inventory and accounts receivable.
- Cash provided by operating activities for the thirty-nine weeks ended September 26, 2026 was $ (1,259,730), compared with $ (644,428) in the prior-year period.
- EMEA Client and Endpoint Solutions net sales declined by 1%, and foreign-currency translation negatively affected year-over-year sales comparisons in EMEA and Asia-Pacific.
What to watch
- Q4 delivery against net sales guidance of $17.5 billion to $17.9 billion and non-GAAP diluted EPS guidance of $1.05 to $1.15.
- The effect of the fourteen-week fiscal fourth quarter relative to the thirteen-week prior fiscal fourth quarter.
- Whether GPU and AI-infrastructure growth continues to pressure consolidated gross margin.
- Working-capital conversion and cash generation as sales growth continues to require inventory and receivables investment.
- Execution on expense management, restructuring initiatives, optimization and automation.
Balance sheet and cash flow
- Cash and cash equivalents were $ 1,003,506 at September 26, 2026, compared with $ 1,864,724 at December 27, 2025.
- Trade accounts receivable were $ 11,528,386 and inventory was $ 6,566,692 at September 26, 2026.
- Accounts payable were $ 13,053,181 at September 26, 2026.
- Short-term debt and current maturities of long-term debt were $ 1,047,204 and long-term debt, less current maturities was $ 2,853,351 at September 26, 2026.
- Cash provided by operating activities was $ 251,364 for the thirteen weeks ended September 26, 2026, compared with $ (146,038) in the prior fiscal third quarter.
- Adjusted free cash flow was $ 249,509, compared with $ (109,944) in the prior fiscal third quarter.
- Cash, cash equivalents and restricted cash at end of period was $ 1,018,514, compared with $ 802,630.
Analysis
Ingram Micro reported a strong fiscal third quarter, with net sales of $ 15,220,461, up 20.8%, and GAAP net income of $ 131,080, up 31.8%. Growth was broad based across all four regions and was led by Advanced Solutions, which increased by 40% globally, and Cloud-based Solutions, which increased by 31%. North America was the largest growth contributor, with net sales of $ 5,820,665, up 31.5%, supported by GPU and AI-infrastructure, networking and server demand.
Profit growth exceeded sales growth. Income from operations increased 31.4% to $ 293,768 and its margin improved to 1.93% from 1.77%, while adjusted income from operations rose 24.9% to $ 321,988 and its margin improved to 2.12% from 2.05%. The release attributes the operating leverage to disciplined expense management, restructuring initiatives, optimization and automation. GAAP diluted EPS rose 35.7% to $ 0.57, and non-GAAP diluted EPS increased 26.4% to $ 0.91.
Mix remained the principal margin issue. Gross profit increased 14.6% to $ 996,926, but gross margin declined to 6.55% from 6.90% because of growth in lower-margin, low cost-to-serve GPU and AI-infrastructure product sets. Excluding these large deals, gross margin was 7.06% versus 7.10% in the prior fiscal third quarter. Regional profitability improved in all four regions, although the drivers varied between operating-cost leverage and stronger Cloud-based Solutions or Advanced Solutions mix.
Cash flow improved sharply in the quarter. Cash provided by operating activities was $ 251,364 versus $ (146,038), and adjusted free cash flow was $ 249,509 versus $ (109,944). The Company cited working-capital discipline and vendor accounts-payable terms, even as sales growth required investment in inventory and receivables. For the thirty-nine-week period, however, cash provided by operating activities was $ (1,259,730) and adjusted free cash flow was $ (1,240,179), reflecting working-capital investment.
The Company raised its outlook from the September Capital Markets Day and guided fiscal Q4 net sales to $17.5 billion to $17.9 billion, gross profit to $ 1,075 to $ 1,115, and non-GAAP diluted EPS to $1.05 to $1.15. The guide incorporates a fourteen-week Q4, compared with thirteen weeks in the prior fiscal fourth quarter. Capital returns included a $0.088 per-share quarterly dividend, and the Company repurchased $ (16,992) of common stock during the quarter.
Management, verbatim
Our record third-quarter performance reflects the breadth and resilience of our business and continued execution against the strategy we outlined at our Capital Markets Day in September. We delivered broad-based growth across all four regions, and across our primary lines of business, while continuing to scale Xvantage TM and advance our intelligent operating model.
Paul Bay, chief executive officer
Our double-digit year-over-year growth is reflective of balanced strength both geographically and by line of business, but remains most robust in Advanced Solutions, including GPU and AI infrastructure as well as Cloud-based Solutions.
Mike Zilis, chief financial officer
This growth paired with disciplined expense management, drove operating income above our expectations, while disciplined working capital management contributed to our strongest third-quarter cash flow performance to date.
Mike Zilis, chief financial officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Prior-quarter values and sequential changes for reported operating metrics were not provided.
- GAAP diluted EPS guidance for fiscal fourth quarter 2026 was not provided.
- Fiscal fourth quarter gross-margin and operating-expense guidance were not provided.
- A full reconciliation of forward-looking non-GAAP diluted EPS to GAAP diluted EPS was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.