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Jun 30, 2025
Insight Enterprises Q2 2025 Earnings Report
Insight Enterprises reported a decrease in consolidated net sales and net earnings, while hardware sales grew and gross margin expanded in Q2 2025.
Key Takeaways
Insight Enterprises experienced a challenging second quarter in 2025, with consolidated net sales decreasing by 3% year-over-year to $2.1 billion and net earnings dropping by 46% to $46.9 million. Despite these declines, the company achieved growth in hardware net sales and expanded its gross margin to a record 21.1%. Adjusted diluted EPS remained flat year-over-year, meeting expectations amidst partner program changes.
Consolidated net sales decreased 3% year-over-year to $2.1 billion, primarily due to declines in product and services net sales.
Net earnings significantly decreased by 46% year-over-year to $46.9 million, impacted by partner program changes and an impairment loss on a real estate asset.
Gross profit decreased 2% to $442.3 million, but gross margin expanded by 10 basis points to a record 21.1%.
Hardware net sales increased by 2% year-over-year, marking the second consecutive quarter of growth in this segment.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2025, Insight Enterprises expects Adjusted diluted earnings per share to be between $9.70 and $10.10, with gross profit approximately flat from 2024 and gross margin around 20%.
Positive Outlook
- Expected Adjusted diluted earnings per share between $9.70 and $10.10 for the full year 2025.
- Gross profit is expected to be approximately flat compared to 2024.
- Gross margin is anticipated to be approximately 20% for the full year.
- Assumes an effective tax rate of approximately 25% to 26% for the full year.
- Assumes capital expenditures of $30 million to $35 million.
Challenges Ahead
- Outlook excludes acquisition-related intangibles amortization expense of approximately $74.4 million.
- Assumes no acquisition or integration related expenses.
- Assumes no transformation or severance and restructuring expenses, net.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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