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    INGM
    Earnings call· Mar 2026(Q1 FY26)

    Ingram Micro Holding Q1 FY26 earnings call INGM

    Apr 30, 2026 Source

    Executive summary

    Ingram Micro Q1 FY26 — Strong Growth Driven by Cloud and AI Infrastructure

    Ingram Micro delivered a strong Q1 FY26, exceeding guidance with robust revenue and non-GAAP EPS growth, primarily fueled by double-digit expansion in Cloud and Advanced Solutions, including significant AI infrastructure deals. The Xvantage platform continues to drive operational efficiencies and enhanced customer engagement, evidenced by patent grants and AI-led sales. The company is actively navigating memory supply constraints and geopolitical headwinds while maintaining a disciplined capital allocation strategy.

    Highlights

    5

    • Net revenue grew nearly 14% year-over-year to $13.96 billion.

    • Non-GAAP diluted EPS increased 23% year-over-year to $0.75.

    • Non-GAAP net income grew over 20% year-over-year to $175.5 million.

    • Cloud segment grew 25% year-over-year on an FX-neutral basis, or 34% adjusted for divestiture.

    • IDA-driven opportunities converted at nearly 4x the standard baseline.

    Concerns

    5

    • Mix shift towards lower-margin GPU and AI infrastructure projects impacted gross margin by approximately 35 basis points.

    • Memory supply constraints are causing average selling price increases ranging from single-digit to double-digit percentage points.

    • Some projects are being indefinitely deferred due to product unavailability, and price-sensitive customers are altering scope or delaying spending.

    • Potential negative impact of $0.01 to $0.03 per diluted share on Q2 EPS from the volatile situation in the Middle East.

    • Adjusted free cash flow was an outflow of $962 million in Q1 FY26 due to seasonal working capital investment.

    Guidance & targets

    12
    CategoryTargetConfidence
    Net Sales
    $13.6 billion to $14.0 billion
    high materiality
    High
    Cloud Growth
    healthy double-digit year-over-year growth
    medium materiality
    High
    Advanced Solutions Growth
    higher single digits
    medium materiality
    High
    Client and Endpoint Solutions (CES) Growth
    lower single-digit pace
    medium materiality
    High
    Gross Profit
    $905 million to $950 million
    high materiality
    High
    Non-GAAP Diluted EPS
    $0.68 to $0.78 per diluted share
    high materiality
    High
    Non-GAAP Tax Rate
    27%
    low materiality
    High
    Weighted Average Shares Outstanding
    232.7 million
    low materiality
    High
    SG&A Expenses as % of Net Sales
    less than 5%
    medium materiality
    High
    Free Cash Flow to Adjusted EBITDA Ratio
    north of 30%
    medium materiality
    High
    Xvantage Outsized Spend
    another 4 to 5 quarters
    low materiality
    Medium
    IDA Revenue as % of Xvantage Countries Revenue
    double digits
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    North America
    Driven by strength in Cloud and Advanced Solutions, including large enterprise GPU and AI infrastructure projects.
    		$5.0 billiondouble-digit growth——
    APAC
    Second largest region by net revenue, driven by strength in Cloud and Advanced Solutions (GPU/AI infrastructure projects). India performed to plan with healthy top line and margin growth.
    		$4.1 billiondouble-digit growth——
    EMEA
    Growth across Client and Endpoint Solutions and Advanced Solutions, with strongest growth in cloud-based solutions. Achieved while navigating challenges of the Middle Eastern conflict.
    		$3.9 billion3.8% FX-neutral growth——
    Latin America
    Driven by growth in Client and Endpoint Solutions (notebooks and desktops), Advanced Solutions, and cloud-based solutions. Xvantage-enabled capabilities contributed to improved outcomes.
    		—10.1% FX-neutral growth—highest gross margin across regions, up 69 basis points year-over-year

    Operational metrics

    30
    Net Revenue Growth
    13.7%YoY
    Q1 FY26

    Reported in U.S. dollars.

    Cloud Growth
    25%YoY
    Q1 FY26

    Strong double-digit growth.

    Advanced Solutions Growth
    14%YoY
    Q1 FY26

    Driven by strength in server and networking, including large-scale enterprise deals in GPU and AI infrastructure.

    Client and Endpoint Solutions (CES) Growth
    8%YoY
    Q1 FY26

    Strong demand for notebooks and desktops as refresh cycle continues and AI PC penetration grows. On top of solid double-digit growth in Q1 FY25.

    Gross Profit
    $926 millionup 12% YoY
    Q1 FY26

    Reflects strong top-line performance.

    Non-GAAP Gross Margin
    6.63%down 12 bps YoY
    Q1 FY26

    Mix shift towards lower-margin GPU and AI infrastructure projects drove the decline.

    Operating Expenses
    $703 million
    Q1 FY26

    Compared to 5.11% in Q1 FY25.

    SG&A Leverage Improvement
    12 bpsYoY
    Q1 FY26

    Driven by operating efficiencies from cost reductions, Xvantage leverage, and mix factors.

    Adjusted Income from Operations
    $262 millionup 14% YoY
    Q1 FY26

    Driven by strong top-line performance and operating leverage discipline.

    Adjusted Income from Operations Margin
    1.88%vs 1.87% in Q1 FY25
    Q1 FY26

    Lower gross margin from sales mix offset by OpEx leverage improvements.

    Non-GAAP Net Income
    $175.5 millionup 22% YoY
    Q1 FY26

    Reflective of strong growth in adjusted income from operations, reduced interest expense, and favorable foreign exchange impacts.

    Non-GAAP EPS
    $0.75up 23% YoY
    Q1 FY26

    Came in at the high end of guidance range.

    Net Working Capital
    $4.4 billionvs $4.3 billion Q1 FY25 end
    Q1 FY26 end

    Increase of a bit over 2% is far less than the 13.7% increase in net sales.

    Net Working Capital Days
    23vs 29 days in Q1 FY25
    Q1 FY26

    Improvement reflects disciplined management, optimized inventory, and Xvantage capabilities.

    Cash and Investments Balance
    $916 million
    Q1 FY26 end

    Cash and cash equivalents.

    Total Debt
    $3.3 billion
    Q1 FY26 end

    Reflects continued reduction of debt.

    Net Debt to Adjusted EBITDA
    1.7xvs 2.0x in Q1 FY25
    Q1 FY26 end

    Improved notably from prior year due to continued debt reduction.

    Term Loan Repaid
    $200 million
    Q1 FY26

    Repaid during Q1.

    Stock Repurchased
    $75 million
    Q1 FY26

    Repurchased directly from majority owner as part of a secondary offering.

    Dividends Paid
    $19 million
    Q1 FY26

    Returned to stockholders during the quarter.

    Quarterly Dividend Increase
    2.4%sequentially
    Q2 FY26

    Announced for the next quarterly dividend.

    Email to Order Processed
    230,000up 78% YoY
    Q1 FY26

    Using generative AI to convert unstructured customer emails into structured transactions.

    Sales from Email to Order
    >$1 billion
    Q1 FY26

    Enabled with significantly lower manual touch.

    Proactive Engagements (IDA/AI)
    >153,000
    Q1 FY26

    Helping customers convert sales.

    AI-led Net Sales (IDA)
    >$800 million
    Q1 FY26

    Driven by IDA and other AI capabilities.

    Self-Service Orders
    >2 million
    Q1 FY26

    Strong adoption of self-service capabilities.

    Average Revenue per Customer (Self-Service)
    >20%YoY growth
    Q1 FY26

    Contributed by strong adoption of self-service capabilities.

    IDA Revenue Growth
    >200%QoQ growth
    Q1 FY26

    Reflects increased proactive customer engagement and stronger revenue generation in India.

    Memory Supply Constraints Impact on Net Sales
    2% to 3%net positive YoY
    Q1 FY26

    Estimated net positive impact from ASP increases, extended lead times, and project deferrals.

    AI PC Penetration
    roughly 1/4
    Q1 FY26

    Of overall PC base.

    Industry KPIs

    5
    MetricValueDetails
    Segment revenue growthNorth America: $5.0 billion; APAC: $4.1 billion; EMEA: $3.9 billionUSD
    Content per device per vehicleroughly 1/4
    Design wins product cycle rampsMicrosoft AI apps specialization
    Supply demand imbalance lead timesextended lead times
    Operating margin incremental leverage69 bpsbps

    Product announcements

    1
    ProductTypeDetails
    Microsoft AI apps specializationmilestone

    Deals & partnerships

    1
    Majority ownerStock repurchase as part of secondary offering$75 million

    Repurchased $75 million of stock directly from the majority owner as part of a secondary offering that further moved ownership stake into public flow.

    Risks & headwinds

    4
    Memory supply constraintsOngoing

    Causing ASP increases (single-digit to double-digit percentage points); estimated net positive impact of 2-3% on Q1 net sales.

    Mitigation: Offering alternatives, bundling solutions, leveraging Xvantage intelligence for substitute recommendations, evaluating opportunistic inventory buy-ins.

    Project deferrals and scope alterationsNear-term

    Some projects indefinitely deferred due to product unavailability; price-sensitive customers altering project scope or delaying spending.

    Mitigation: Providing alternatives, bundling solutions, and focusing on business needs regardless of product availability.

    Middle East conflictQ2 FY26

    Potential negative impact of $0.01 to $0.03 per diluted share on Q2 FY26 EPS.

    Mitigation: Leveraging broad geographic reach and breadth of offerings to navigate uncertainty.

    Geopolitical environmentOngoing

    Volatile situation in the Middle East.

    Mitigation: Track record of navigating uncertainty, broad geographic reach, and Xvantage platform capabilities.

    What to watch in Q2 FY26

    5

    IDA Revenue as % of Xvantage Countries Revenue

    by end of FY26
    Currentmid-single digits
    Targetdouble digits

    Why it matters

    This metric indicates the increasing effectiveness and adoption of Ingram Micro's AI-driven platform in generating revenue, which is key to its platform company strategy and operating leverage.

    We have a lot of headroom to be able to roll out more IDA and our expectations and our commitment, and we're well on our way, is to have that be double digits by the end of the year of the revenue for those Xvantage countries being able to deliver through IDA.

    Q&A highlights

    10

    What types of products or projects are most impacted by supply constraints, price increases, and customer deferrals?

    Impact is seen across a mix of products, primarily project-based in Advanced Solutions, especially for smaller, more price-sensitive customers. Price increases are elevated in PC, server, storage, and some components. Lead times are extended, and some projects are deferred due to product unavailability or altered scope due to price sensitivity.

    “I think if we're seeing this probably across a mix of products, but it tends to be more project-based, a little bit more on the Advanced Solutions area, where there's and probably a little bit more geared towards smaller customers where there is a little bit more of that price sensitivity, large enterprise continues to do generally continues to invest.”

    asked by Katherine Murphy · answered by Michael Zilis

    2 min read5 chapters

    Detailed Narrative

    01

    Xvantage Platform Innovation and Patent Grants

    Ingram Micro highlighted the increasing competitive moat of its Xvantage digital B2B platform, built with a real-time data mesh and over 400 AI/ML models. The company announced four granted patents, recognizing its innovation in solving fragmented B2B commerce. These include a vendor-agnostic framework for real-time integration, dynamic SKU generation for complex solution configuration, configure-to-order for automated quote-to-order conversion, and email-to-order using generative AI to process unstructured customer emails into structured transactions, which processed approximately 230,000 emails in Q1, enabling over $1 billion in sales.

    02

    AI Monetization and Operational Impact

    The Xvantage platform's AI capabilities, particularly the Intelligent Digital Assistant (IDA), are driving measurable outcomes. IDA and other AI tools delivered over 153,000 proactive engagements in Q1, contributing to more than $800 million in AI-led net sales. IDA-driven opportunities are converting at nearly 4x the standard baseline. The company also achieved a specialization for AI apps with Microsoft, leveraging Azure AI services to build AI-powered capabilities that streamline partner workflows and accelerate sales productivity, extending advanced services to partners.

    03

    Regional Performance and Xvantage Adoption

    All four core regions demonstrated double-digit year-over-year top-line growth in USD. North America and APAC led with over 12% growth, driven by Cloud and Advanced Solutions, including large GPU and AI infrastructure deals. Latin America delivered the highest gross margin across regions, up 69 basis points YoY, attributed to Xvantage-enabled capabilities shifting SMB demand to self-service. India also showed strong performance with IDA revenue growing over 200% QoQ, indicating successful scaling of the Xvantage model globally.

    04

    Supply Chain Dynamics and Market Headwinds

    The IT industry is experiencing memory supply constraints, leading to ASP increases (single-digit to double-digit percentage points) and extended lead times. This has resulted in some project deferrals and scope alterations by price-sensitive customers. The net positive impact of these factors on Q1 net sales was estimated at 2% to 3%. Management noted that while they are evaluating opportunistic inventory buy-ins, the impact on Q1 volumes was not material. The company aims to mitigate these challenges by offering alternatives, bundling solutions, and leveraging Xvantage intelligence for substitute recommendations.

    05

    Capital Allocation and Financial Discipline

    Ingram Micro completed a secondary stock offering in early March, repurchasing $75 million of stock from its majority owner and expanding its repurchase program. The company returned $19 million to stockholders through dividends in Q1 and announced a 2.4% sequential and 10.5% YoY increase in the next quarterly dividend. Debt was reduced by $200 million in Q1, bringing the net debt to adjusted EBITDA ratio to 1.7x, down from 2.0x in Q1 FY25, reflecting continued debt reduction efforts and a balanced capital allocation strategy.

    AI-generated summary of the company’s earnings call. Not investment advice.