Insight Enterprises reported a strong increase in third-quarter sales and adjusted earnings, while its reported net earnings and operating income fell from a year earlier. The IT solutions provider also raised its full-year 2026 outlook; the announcement details provided here do not include the revised guidance figures.
Key details
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Sales and gross profit grew: Third-quarter net sales rose 22% year over year to $2.4 billion. Gross profit increased 20% to $523.2 million, while gross margin narrowed by 30 basis points to 21.4%.
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Adjusted profitability improved: Adjusted operating income rose 23% to $166.9 million, equal to 6.8% of sales. Adjusted EBITDA increased 22% to $177.4 million. Adjusted net earnings grew 28% to $107.3 million, and adjusted diluted earnings per share climbed 34% to $3.59.
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Reported earnings declined: Net earnings fell 57% to $22.2 million, or $0.74 per diluted share, from $50.9 million and $1.61 per share a year earlier. Operating income decreased 26% to $68.7 million, or 2.8% of sales.
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Higher costs weighed on reported results: Selling and administrative expenses increased 29%; on an adjusted basis, they rose 19%. Insight attributed the increase mainly to higher earnout valuation adjustments, greater variable compensation tied to business performance, and expenses from acquisitions completed in the fourth quarter of 2025. Higher severance and restructuring costs also weighed on operating income, including expenses from a voluntary separation program launched during the quarter.
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Cash generation: Cash provided by operating activities was $128.4 million.
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Outlook: Insight raised its full-year 2026 outlook.
Plain-English implications
Insight’s sales and adjusted earnings advanced, but higher earnout-related expenses, restructuring costs and other items contributed to a sharp decline in reported earnings. The gap between reported and adjusted results is therefore important context when comparing the quarter with last year.