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Sep 30
Insight Enterprises Q3 2025 Earnings Report
Insight Enterprises reported its third quarter 2025 financial results, showing a decrease in consolidated net sales but growth in adjusted diluted earnings per share and record gross margin.
Key Takeaways
Insight Enterprises delivered a mixed performance in Q3 2025, with consolidated net sales decreasing by 4% year-over-year to $2.0 billion. However, the company achieved an 11% increase in Adjusted diluted earnings per share to $2.43 and expanded its gross margin by 100 basis points to a record 21.7%. Operating income remained flat, while net income saw a 12% decline, primarily due to higher interest expenses.
Consolidated net sales decreased 4% year-over-year to $2.0 billion, with product net sales down 6% and services net sales up 3%.
Gross profit was flat year-over-year at $434.2 million, but gross margin expanded by 100 basis points to a record 21.7%.
Diluted earnings per share increased 7% to $1.62, and Adjusted diluted earnings per share rose 11% to $2.43.
Net income decreased 12% year-over-year to $50.9 million, mainly due to increased interest expense.
Insight Enterprises
Insight Enterprises
Insight Enterprises Revenue by Segment
Insight Enterprises Revenue by Geographic Location
Revenue by Segment
Products Revenue
CapyFin.comServices Revenue
CapyFin.comHardware Revenue
CapyFin.comSoftware Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.com Forward Guidance
For the full year 2025, Insight Enterprises expects Adjusted diluted earnings per share to be between $9.60 and $9.90. Gross profit is anticipated to be slightly down from 2024, with a gross margin of approximately 21%.
Positive Outlook
- Expected Adjusted diluted earnings per share between $9.60 and $9.90 for the full year 2025.
- Anticipated gross margin of approximately 21% for the full year.
- Assumed effective tax rate of 25% to 26% for the full year.
- Projected capital expenditures of approximately $25 million.
- Average share count for the full year of 32.0 million shares, reflecting warrant settlement.
Challenges Ahead
- Gross profit expected to be slightly down from 2024.
- 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.
- Assumes no significant change in debt instruments or the macroeconomic environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income