Insight Enterprises, Inc.

Insight Enterprises sells business technology and helps clients install, secure and manage it. It earns money from hardware and software sales, cloud arrangements and its own technology services. The company is based in Chandler, Arizona, and trades on Nasdaq as NSIT.

Its three reporting regions are North America, Europe, the Middle East and Africa, and Asia-Pacific. North America supplied about four-fifths of September-quarter sales. Services generate more gross profit than product sales, despite accounting for a smaller share of revenue.

Sales growth and two different profit trends

Third-quarter 2026 sales grew 22% from a year earlier. Hardware sales rose 32%, services sales increased 20% and software sales fell 3%. Some software activity is moving into cloud services, changing the sales mix. Cloud gross profit increased 26% and gross profit from services Insight delivers and manages rose 21%.

Gross margin fell to 21.4% from 21.7%, mainly because hardware contributed more sales at lower margins. North America's gross margin fell to 19.8% from 21.1%, while margins expanded in the other two regions.

Group operating profit declined 26% as earnout revaluations and restructuring costs rose. Net profit fell 57% to $22.2 million. Adjusted net profit increased 28% to $107.3 million; adjusted EPS grew faster, at 34%, helped by fewer shares. The current adjusted figures exclude stock-based compensation and several other expenses, with prior comparisons recast to match.

Completed acquisitions and future payments

Insight completed the purchase of Inspire11, a technology delivery firm, on October 1, 2025. It acquired cybersecurity provider Sekuro on October 31, 2025. Inspire11 is included in North America and Sekuro in Asia-Pacific, so the latest year-over-year growth includes businesses absent from the September 2025 quarter.

Asia-Pacific sales rose 104% to $120.0 million in the third quarter of 2026. A $36.875 million expense revaluing the potential Sekuro earnout pushed the region to a $22.302 million operating loss. Regional adjusted operating profit was $16.495 million, compared with $6.439 million a year earlier.

Sekuro's sellers can earn up to A$122.5 million against sales and profit targets through October 2027. Inspire11's agreement provides for up to $66 million against profit targets through September 2027. Insight recorded a further $1.720 million earnout revaluation expense for Inspire11 during the September quarter.

Infocenter, acquired in May 2024, reached the end of its earnout performance period in April 2026. Insight paid $38.470 million for its second earnout period in July 2026.

Cash, borrowing and share repurchases

Operating cash flow was $148.5 million in the first nine months of 2026, compared with $150.1 million a year earlier. Capital spending was $21.0 million. Insight spent $225.0 million repurchasing shares during those nine months and drew a net $139.1 million on its revolving credit line.

At September 30, cash was $397.7 million and debt had a carrying value of $1.499 billion, compared with $358.0 million and $1.361 billion at December 31, 2025. Another $243.3 million was owed under inventory-financing facilities, recorded separately from debt. Large agency transactions inflate both customer receivables and vendor payables because Insight passes through payments; the paired balances generally offset on settlement.

After September, Insight repurchased another $37.5 million of shares, leaving $36.5 million under its authorization at the November filing. On October 30, its PNC inventory-financing capacity increased by $75 million to $500 million. Its main $2 billion revolving facility matures in December 2030, and $500 million of senior notes mature in May 2032.

What changed in the outlook

On November 5, Insight raised its full-year 2026 adjusted EPS target to $13.55 to $13.75, from $12.20 to $12.70 on August 6. Expected gross-profit growth rose to 12.5% to 14%, from 8% to 10%. It now expects gross margin of about 21.5%, against its earlier 21.5% to 22% range.

The forecast assumes about 30 million average shares, capital spending of $20 million to $30 million and an adjusted effective tax rate of about 25.5%. It excludes restructuring, acquisition-related and other adjustments. The next tests are delivery of the higher gross-profit target, cash generation after working-capital needs, and the costs attached to the acquired businesses.

Our analysis of Insight's Asia-Pacific profit gap explains how the Sekuro earnout changed the latest reported result.