Fiscal Second Quarter 2026
Filed Jul 30, 2026Ingram Micro Reports Record Q2 2026 Results Exceeding the High End of Guidance Across All Financial Metrics with Significant Operating Leverage
Net sales rose 13.6%, GAAP net income rose 193.1%, non-GAAP net income rose 34.5%, and the company stated that results exceeded the high end of guidance across all financial metrics. Gross profit and adjusted EBITDA also grew, while Q3 guidance calls for year-over-year sales growth and non-GAAP diluted EPS of $0.72 to $0.82.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $14.5 billion | – | 13.6% |
| Gross profitGAAP | $958.7 million | – | 14.2% |
| Gross marginGAAP | 6.60% | – | – |
| Income from operationsGAAP | $236.0 million | – | – |
| Income from operations marginGAAP | 1.62% | – | – |
| Adjusted income from operationsnon-GAAP | $280.4 million | – | – |
| Adjusted income from operations marginnon-GAAP | 1.93% | – | – |
| Adjusted EBITDAnon-GAAP | $355.8 million | – | 21.0% |
| Net incomeGAAP | $110.9 million | – | 193.1% |
| Non-GAAP net incomenon-GAAP | $191.4 million | – | 34.5% |
| Diluted EPSGAAP | $0.48 | – | 200.0% |
| Non-GAAP diluted EPSnon-GAAP | $0.82 | – | 34.4% |
| Basic EPSGAAP | $0.48 | – | – |
| Non-GAAP basic EPSnon-GAAP | $0.83 | – | – |
| Cash used in operationsGAAP | $533.2 million | – | – |
| Adjusted free cash flownon-GAAP | $(527.3) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaGrowth was primarily driven by an 8% increase in Client and Endpoint Solutions, driven by growth in notebooks and desktops. Advanced Solutions increased by 3%, Cloud-based Solutions increased by 35%, and Cloud-based Solutions increased by 54% year-over-year excluding the CloudBlue divestiture. | $5.3 billion | – | 6.0% |
| EMEAGrowth was led by 10% growth in Advanced Solutions, 44% growth in Cloud-based Solutions, and 7% growth in Client and Endpoint Solutions, partially offset by a decline in Other Services. Foreign-currency translation had a positive impact of 2% on the year-over-year sales comparison. | $3.7 billion | – | 7.7% |
| Asia-PacificGrowth was driven by 19% growth in Client and Endpoint Solutions, 51% growth in Advanced Solutions driven by GPU and AI-infrastructure product sets, and 87% growth in Cloud-based Solutions, partially offset by a decline in Other Services. Foreign-currency translation had a negative impact of 1% on the year-over-year sales comparison. | $4.4 billion | – | 27.1% |
| Latin AmericaGrowth was primarily driven by 32% growth in Client and Endpoint Solutions, 9% growth in Advanced Solutions, 71% growth in Cloud-based Solutions, and 57% growth in Other Services. | $1.1 billion | – | 27.0% |
Q3 2026 outlook
- Revenue$13.55 billion to $13.95 billion
- NoteNet sales expected to increase year-over-year by 7.5% to 10.7%.
- NoteNon-GAAP diluted EPS expected to be $0.72 to $0.82.
Capital returns
- Quarterly dividend increased to $0.086 per share, a sequential increase of 2.4% and 10.3% over prior year.
- Secondary offering completed in May for 14.5 million shares, inclusive of the company's purchase of 1.2 million shares to further reduce the ownership stake of its primary shareholder.
What drove it
- Year-over-year net sales growth was driven by increases across each geographic segment.
- Foreign-currency translation had a 1% positive impact on the year-over-year net sales comparison.
- Sales mix shifted toward lower-margin AI-infrastructure products.
- The increase in gross profit and leverage on operating expenses supported income from operations and adjusted income from operations growth.
- Asia-Pacific Advanced Solutions grew 51%, driven by GPU and AI-infrastructure product sets.
- Asia-Pacific gross-margin improvement across all categories, led by Cloud-based Solutions, and lower SG&A expenses as a percentage of sales supported regional operating margin expansion.
Concerns
- Cash used in operations increased to $533.2 million and adjusted free cash flow was $(527.3) million, reflecting heavier inventory investment, ongoing supply constraints, and related increases in average selling prices.
- The shift toward lower-margin AI-infrastructure products affected the year-over-year gross-margin comparison.
- EMEA income from operations declined to $54.6 million from $55.7 million, while operating margin declined to 1.46% from 1.60%, due to higher expenses as a percentage of sales.
- North America gross margin declined due to a sales-mix shift toward lower-margin Client and Endpoint Solutions.
What to watch
- Q3 2026 net sales guidance of $13.55 billion to $13.95 billion and the indicated year-over-year increase of 7.5% to 10.7%.
- Q3 2026 non-GAAP diluted EPS guidance of $0.72 to $0.82.
- Inventory investment, ongoing supply constraints, and related increases in average selling prices.
- The margin effect of continued AI-infrastructure sales mix.
- Whether EMEA can improve expenses as a percentage of net sales following restructuring costs and higher bad-debt expense.
Balance sheet and cash flow
- Cash used in operations was $533.2 million, compared to $298.0 million used in the prior fiscal second quarter.
- Adjusted free cash flow was $(527.3) million, compared to $(262.8) million in the prior fiscal second quarter.
- Cash flow was primarily driven by heavier investment in inventory to support business growth ahead of ongoing supply constraints and related increases in average selling prices, offset in part by higher net income.
Analysis
Ingram Micro reported record fiscal second-quarter results, with net sales of $14.5 billion, up 13.6% year-over-year, and stated that performance exceeded the high end of guidance across all financial metrics. Every geographic segment recorded year-over-year sales growth. Asia-Pacific and Latin America were the fastest-growing regions, while Asia-Pacific became the company’s second-largest region in both net sales and operating margin according to management.
Profit growth materially outpaced sales growth. Gross profit increased to $958.7 million and gross margin was 6.60%, compared with 6.56% in the prior fiscal second quarter. GAAP net income rose to $110.9 million and non-GAAP net income rose to $191.4 million. Adjusted EBITDA increased 21.0% to $355.8 million. The reported operating-margin improvement was supported by lower SG&A expenses as a percentage of net sales and operating-expense leverage, although the sales mix shifted toward lower-margin AI-infrastructure products.
Regional results showed divergent profitability. North America sales grew 6.0%, supported by Client and Endpoint Solutions and Cloud-based Solutions, and its operating margin improved to 1.39%. Asia-Pacific sales rose 27.1%, with GPU and AI-infrastructure products supporting 51% Advanced Solutions growth, and operating margin increased to 2.13%. EMEA sales increased 7.7%, but income from operations declined to $54.6 million and operating margin fell to 1.46% due to higher expenses as a percentage of sales, including restructuring costs and bad-debt expense.
Cash conversion was the principal counterweight to earnings growth. Cash used in operations was $533.2 million and adjusted free cash flow was $(527.3) million, with the company attributing the result primarily to inventory investment ahead of ongoing supply constraints and related increases in average selling prices. Capital actions included a quarterly dividend increase to $0.086 per share and a May secondary offering for 14.5 million shares, including the company’s purchase of 1.2 million shares.
For Q3 2026, the company expects net sales of $13.55 billion to $13.95 billion, representing a stated year-over-year increase of 7.5% to 10.7%, and non-GAAP diluted EPS of $0.72 to $0.82. The outlook keeps attention on the durability of regional sales growth, the margin effects of AI-infrastructure mix, and whether inventory investment and supply constraints continue to pressure operating cash flow.
Management, verbatim
We delivered the strongest second quarter results in Ingram Micro’s history, exceeding our guidance and demonstrating the strength of our global business, diversified portfolio, and disciplined execution.
Paul Bay, Ingram Micro’s Chief Executive Officer
Our performance reflects healthy demand across the business, with growing evidence that our Xvantage™ platform is creating meaningful differentiation as we help partners monetize and deliver solutions across hardware, software, cybersecurity and cloud.
Paul Bay, Ingram Micro’s Chief Executive Officer
While we are quite pleased with double digit growth in gross profit dollars, our focus on disciplined execution, operating efficiency and quality of business yielded growth in Non-GAAP net income at a rate well over two-times that of gross profit and non-GAAP EPS of $0.82, well above the high end of our guidance range.
Mike Zilis, Ingram Micro’s Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for net sales, gross profit, operating income, net income, EPS, adjusted EBITDA, cash used in operations, and adjusted free cash flow were not provided.
- Total operating expenses and SG&A expense were not provided.
- Q3 2026 gross-margin, operating-expense, and tax-rate guidance were not provided.
- Prior guidance was not provided.
- Cash balance, debt balance, and net debt were not provided.
- Share-repurchase dollar amount and total dividend payment were not provided.
- Latin America income from operations and operating margin were not included in the provided filing text.
- EMEA prior-year net sales amount was not provided in the supplied text.
- Latin America foreign-currency translation impact was truncated from the supplied filing text.
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.