Ingram Micro — Q3 2026 Earnings Summary

Financial Performance:

• Net sales reached $15.2 billion, a 20.8% increase year-over-year from $12.6 billion.
• Gross profit was $996.9 million, up 14.6% year-over-year; gross margin was 6.55% compared to 6.90% in the prior year. Excluding large GPU and AI-infrastructure deals, gross margin was 7.06%.
• Income from operations was $293.8 million, up 31.4% year-over-year, with an operating margin of 1.93%.
• Adjusted income from operations was $322.0 million, up 24.9% year-over-year, with an adjusted margin of 2.12%.
• Diluted GAAP EPS was $0.57, up 35.7% year-over-year; Non-GAAP diluted EPS was $0.91, up 26.4% year-over-year.
• Cash provided by operations was $251.4 million, compared to a use of $146.0 million in the prior year.
• Adjusted free cash flow was $249.5 million, compared to a use of $109.9 million in the prior year, marking the highest third-quarter cash flow in over five years.
• Adjusted EBITDA was $390.1 million, up from $342.2 million in the prior year.
• Total assets were $23.1 billion as of September 26, 2026, compared to $21.2 billion as of December 27, 2025.
• Short-term debt and current maturities of long-term debt increased to $1.05 billion from $450 million in the prior period.

Guidance and Future Outlook:

• Fiscal Q4 2026 net sales are expected to be $17.5 billion to $17.9 billion, representing a 17.6% to 20.3% year-over-year increase.
• Non-GAAP diluted EPS for Q4 2026 is expected to be $1.05 to $1.15, up from $0.96 in the prior fiscal fourth quarter.
• The guidance assumes an effective tax rate of approximately 27% on a non-GAAP basis and 231.7 million diluted shares outstanding.
• Reaffirmed multi-year financial framework targets for fiscal years 2026-2029:
  • Net sales CAGR: ~4% to 6%.
  • Gross profit CAGR: ~5% to 7%.
  • Operating expenses: ~4.4% to 4.8% of net sales.
  • Non-GAAP net income CAGR: ~11% to 13%.
  • Adjusted free cash flow / adjusted EBITDA: ~30% or more.
  • Adjusted ROIC (four-year average): ~16% to 17%.

Business Segments and Product Lines:

• Advanced Solutions offerings increased 40% globally, driven by GPU and AI infrastructure.
• Cloud-based Solutions increased 31% globally.
• Client and Endpoint Solutions increased 10% globally.
• Other services increased 35% globally.
• North America net sales grew 31.5% to $5.8 billion, driven by a 61% increase in Advanced Solutions and 21% increase in Cloud-based Solutions.
• EMEA net sales grew 7.3% to $3.9 billion, driven by 24% growth in Advanced Solutions and 39% growth in Cloud-based Solutions.
• Asia-Pacific net sales grew 22.3% to $4.3 billion, driven by 25% growth in Advanced Solutions and 44% growth in Cloud-based Solutions.
• Latin America net sales grew 16.7% to $1.1 billion, driven by 56% growth in Cloud-based Solutions and 65% growth in Other Services.
• Xvantage™ platform continues to scale, integrating hardware, cloud subscriptions, and AI-driven features.

Market and Competitive Landscape:

• Growth was broad-based across all four geographic regions and primary lines of business.
• The company cites "unmatched global scale" and "growing leadership in agentic commerce" as competitive advantages.
• Sales mix shifted toward lower-margin, low cost-to-serve GPU and AI-infrastructure product sets, impacting overall gross margin despite higher gross profit dollars.

Risks and Challenges:

• Forward-looking statements are subject to risks including general economic conditions, geopolitical conflicts (e.g., Middle East), and supply constraints.
• Risks include the ability to successfully develop and deploy the Xvantage™ platform, retain key personnel, and adapt to industry changes and market volatility.
• Foreign currency translation impacts were noted, with negative impacts in EMEA (-1%) and Asia-Pacific (-2%), partially offset by positive impacts in Latin America (+6%).
• Dependence on Ingram Micro Inc. and its controlled subsidiaries for results of operations and cash flows is noted.

Management Commentary and Tone:

• CEO Paul Bay stated the record performance reflects business breadth, resilience, and execution of the strategy outlined at the September Capital Markets Day.
• CFO Mike Zilis highlighted double-digit growth driven by balanced strength geographically and by line of business, particularly in Advanced Solutions and Cloud-based Solutions.
• Management emphasized disciplined expense management and working capital management as key drivers for operating income and cash flow.
• The tone is confident, citing the ability to translate growth into higher earnings and cash generation while investing for long-term shareholder returns.

Other Key Points:

• The Board of Directors declared a fourth-quarter cash dividend of $0.088 per share, a 2.3% increase from the previous quarter's $0.086.
• The dividend is payable on November 23, 2026, to stockholders of record as of November 9, 2026.
• The company repurchased common stock, with $16.99 million repurchased in the quarter and $121.99 million in the first 39 weeks of the fiscal year.
• The fiscal fourth quarter 2026 includes fourteen weeks of business, compared to thirteen weeks in the prior year.
• CloudBlue divestiture impact was excluded from Cloud-based Solutions growth calculations in North America, which would have shown a 30% increase instead of 21%.
• Restructuring costs were $5.6 million for the quarter.