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    INGM
    Earnings call· Jun 2026(Q2 FY26)

    Ingram Micro Holding Q2 FY26 earnings call INGM

    Jul 30, 2026 Source

    Executive summary

    Ingram Micro Q2 FY26 — Record Performance Driven by Xvantage and AI Infrastructure

    Ingram Micro delivered a record second quarter, exceeding financial commitments through disciplined execution and the growing impact of its Xvantage digital platform. The company saw widespread growth across all segments and geographies, bolstered by strong demand for AI infrastructure and cloud solutions. Strategic investments in Xvantage and Enable AI are driving operational efficiencies and positioning Ingram Micro to capitalize on evolving technology trends, despite ongoing supply chain dynamics and working capital investments.

    Highlights

    5

    • Net revenue of $14.5 billion, significantly above guidance ranges.

    • Adjusted operating income grew nearly 40% year-over-year.

    • Adjusted EPS of $0.82, up 34% year-over-year and well above guidance.

    • Xvantage platform drove 40% increase in time spent, 12% increase in average order value, and 23% increase in average revenue per customer.

    • IDA generated approximately $1 billion in net revenue, nearly 7% of the company's net revenue.

    Concerns

    4

    • GPU and AI infrastructure deals contributed a 30 basis points headwind to gross margin.

    • Middle East conflict had an estimated $0.01 to $0.03 impact on Q2 EPS.

    • Free cash flow outflow of $527 million in Q2 FY26 due to strategic inventory investments and ASP inflation.

    • Supply constraints and longer lead times continue to impact sales closure cycles.

    Guidance & targets

    6
    CategoryTargetConfidence
    Net Sales
    $13.55 billion to $13.95 billion
    high materiality
    High
    Gross Profit
    $910 million to $955 million
    medium materiality
    High
    Non-GAAP Diluted EPS
    $0.72 to $0.82
    high materiality
    High
    Net Revenue Benefit from Supply Constraints
    roughly 2% to 3%
    medium materiality
    High
    Middle East Conflict Impact on EPS
    roughly $0.01 to $0.02
    low materiality
    High
    IDA Revenue Contribution
    double-digit revenue contribution
    medium materiality
    High

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Cloud
    Fastest growing line of business, bolstered by strength in Infrastructure-as-a-Service and cybersecurity. Impacted by an 11% year-over-year effect related to the divestiture of CloudBlue in Q3 2025.
    		—44% FX-neutral——
    Advanced Solutions
    Driven by demand for GPU and AI infrastructure product sets, as well as storage and cybersecurity.
    		—13% FX-neutral——
    Client and Endpoint Solutions
    Driven by strong demand for notebooks, desktops, and components. PC notebooks remained very healthy, growing double digits. Solid single-digit, high single-digit growth in smartphones components and consumer electronics.
    		—12% FX-neutral——
    North America
    Benefited from sales of GPU and AI infrastructure product sets.
    Net Revenue Contribution: 36%
    		$5.28 billion6%——
    Asia Pacific
    Led geographic growth. Second highest operating margin region. Benefited from sales of GPU and AI infrastructure product sets. Turnaround in India successful.
    Net Revenue Contribution: 30%Gross Margin YoY Change: up 27 bpsOperating Income: Largest region worldwide
    		—28% FX-neutral—4.47% gross margin
    EMEA
    Robust growth in cloud, Client and Endpoint Solutions, and Advanced Solutions.
    Net Revenue Contribution: 26%
    		$3.75 billion5% FX-neutral——
    Latin America
    Strong double-digit growth.
    Net Revenue Contribution: 8%
    		—19%—Most profitable region by operating margin

    Operational metrics

    34
    Net Revenue
    $14.53 billionup 13.6% YoY (12.6% FX-neutral)
    Q2 FY26

    Exceeded guidance ranges.

    Gross Profit
    $959 millionup from $839 million YoY
    Q2 FY26

    Gross profit dollars grew faster than revenue.

    Gross Margin
    6.60%up 4 bps YoY
    Q2 FY26

    GPU and AI infrastructure deals tend to be lower margin fulfillment business but are low cost to serve and working capital efficient.

    Operating Expenses
    $722 million4.97% of net sales
    Q2 FY26

    Year-over-year improvement in operating leverage of 47 basis points.

    Adjusted Income from Operations
    $280 millionup 40% YoY
    Q2 FY26

    Growth in gross profit dollars and operating efficiencies are driving significant leverage.

    Non-GAAP Diluted EPS
    $0.82up 34% YoY
    Q2 FY26

    Well above the high end of guidance for Q2.

    Net Working Capital
    $4.9 billionvs $4.6 billion prior year
    Q2 FY26

    Higher investment driven by increased net sales and strategic procurement.

    Net Working Capital Days
    26 days3 days better than prior year
    Q2 FY26

    Efficiency push in working capital deployment.

    Adjusted ROIC
    improved 240 bpsYoY
    Q2 FY26

    Significant contributor from low cost to serve and working capital efficient GPU and AI infrastructure deals.

    Cash and Investments Balance
    $809 million
    Q2 FY26

    Cash and cash equivalents.

    Total Debt
    $3.8 billion
    Q2 FY26

    Total debt balance.

    Net Debt-to-EBITDA
    2.0ximproved ~0.2x from prior year
    Q2 FY26

    Balance the need to invest for growth with higher profit generation.

    Dividends Paid
    $19 million
    Q2 FY26

    Returned to stockholders through dividends.

    Quarterly Dividend Increase
    2.4%sequential increase
    Q3 FY26

    To be paid in Q3.

    Shares Repurchased
    1.2 million shares
    Q2 FY26

    Included in a secondary offering of 14.5 million shares in early May.

    Platinum Equity Ownership Reduction
    13%since beginning of March
    YTD FY26

    Through two secondary offerings and a smaller Rule 144 unregistered sale.

    Xvantage Time Spent
    increased ~40%YoY
    Q2 FY26

    Demonstrates platform's leverage and engagement.

    Xvantage Average Order Value
    increased 12%
    Q2 FY26

    Reinforcing Xvantage scaling as a global platform.

    Xvantage Average Revenue Per Customer
    grew 23%
    Q2 FY26

    Reinforcing Xvantage scaling as a global platform.

    Self-Service Orders
    2.4 millionup 12% YoY
    Q2 FY26

    Increasing efficiency and allowing team members to focus on high-value solution selling.

    Email-to-Order Volume
    up 43% YoYYoY
    Q2 FY26

    AI capability that ingests unstructured customer emails, turning them into touchless orders.

    IDA Net Revenue
    ~$1 billion
    Q2 FY26

    Intelligent Digital Assistant demonstrating measurable business value, ahead of pace for double-digit revenue contribution by year-end.

    MCP Adoption
    increased 50%
    June FY26

    Model Context Protocol, enabling AI agents to securely access Xvantage data, services, and workflows.

    MCP Usage
    grew more than threefold
    June FY26

    MCP-enabled customers are already automating multiple areas of their business.

    Enable AI Customers Engaged
    >60%QoQ growth
    Q2 FY26

    Program helping customers move from AI interest to practical deployment.

    Enable AI Customers in Business Case Deployment
    almost 100%QoQ increase
    Q2 FY26

    Demonstrates acceleration in AI adoption.

    AI PCs as % of Revenue
    >30%
    Q2 FY26

    Suggests an extended cycle with the PC refresh.

    Operational Greenhouse Gas Emissions Reduction
    45%cumulative
    last 3 years

    Progress towards 10 to 0 goals.

    Waste Diversion from Landfill
    >90%
    FY25

    Achieved 2030 target.

    Safety Incidents Reduction
    >70%
    since 2020

    Progress towards 10 to 0 goals.

    Combined North America, EMEA, LatAm Gross Margin
    7.53%
    Q2 FY26

    Compared to Asia-Pacific gross margin of 4.47%.

    Xvantage Penetration in Mature Countries
    ~75%
    Q2 FY26

    Roughly 75% of revenue for those countries is going through Xvantage.

    Xvantage Countries Launched
    22
    Q2 FY26

    Out of 57 countries where Ingram Micro operates.

    Consolidated GPU and AI Infrastructure Sales
    more than doubledYoY
    Q2 FY26

    Primary factor driving overachievement to revenue guidance.

    Industry KPIs

    12
    MetricValueDetails
    M a contribution11% YoY impact%
    Orders book to bill—
    Long term agreements—
    Segment revenue growthCloud: 44% FX-neutral, Advanced Solutions: 13% FX-neutral, Client and Endpoint Solutions: 12% FX-neutral%
    Content per device per vehicle—
    Design wins product cycle ramps—
    Order visibility backlog policy—
    Recurring software services mix—
    Supply demand imbalance lead times2% to 3% net revenue benefit%
    Capacity expansion internal sourcing—
    End market revenue mix organic growthNorth America: 36%, Asia Pacific: 30%, EMEA: 26%, Latin America: 8%%
    Operating margin incremental leverageAdjusted operating income grew nearly 40% YoY%

    Orderbook & backlog

    1
    IDA Net Revenue$1 billionQ2 FY26

    Represents net revenue generated through the Intelligent Digital Assistant (IDA) platform, with opportunities converting at nearly 4x the rate of traditional quotes. Goal is double-digit revenue contribution by year-end.

    Product announcements

    4
    ProductTypeDetails
    Model Context Protocol (MCP)launch
    Enable AI Programexpansion
    Enable AI OEM Acceleratelaunch
    Xvantage Patentsmilestone

    Deals & partnerships

    3
    HPEGlobal distribution partnership

    Ingram Micro became one of two global distribution partners for HPE as it moves to a unified distribution model designed to deliver greater simplicity and consistency for partners across lines of business and geographies.

    Google CloudCollaboration on Xvantage platform and AI models

    Working together to remove complexity from IT distribution with the Xvantage platform, giving enterprises the ability to transform customer service. Partnering further to bring Gemini models and agentic AI to more organizations.

    Leading NeocloudAccess for Enable AI program

    Enable AI now includes access to one of the world's leading Neoclouds, creating a direct path into mission-critical AI training and inference workloads for larger enterprise customers.

    Risks & headwinds

    4
    Middle East ConflictQ2 FY26, Q3 FY26

    $0.01 to $0.03 impact on Q2 EPS; $0.01 to $0.02 impact on Q3 EPS

    Mitigation: Team continued to execute through the prolonged conflict.

    Supply Constraints and Longer Lead TimesQ2 FY26, Q3 FY26

    2% to 3% net revenue benefit (from combined factors including ASP increases and pull forwards, offset by longer lead times and demand elasticity)

    Mitigation: Strategic procurement of certain product categories to get ahead of ASP increases and potential memory-related supply shortages. Improved visibility as vendors extend price quote durations (up to 30 days).

    ASP Increases and Demand ElasticityQ2 FY26

    ASPs driving ~16% sequential increase in inventory on a U.S. dollar basis. Part of 2-3% net revenue benefit.

    Mitigation: Passing through costs, strategic opportunistic purchases. Some customers breaking large projects into smaller phases rather than cancelling.

    GPU and AI Infrastructure Gross Margin HeadwindQ2 FY26

    30 bps headwind on gross margin

    Mitigation: These deals remain very low cost to serve and working capital efficient, contributing to a 240 bps improvement in adjusted ROIC.

    What to watch in Q3 FY26

    5

    IDA Revenue Contribution

    By end of year (FY26)
    Current~$1 billion (nearly 7% of net revenue)
    TargetDouble-digit revenue contribution

    Why it matters

    Indicates the scaling and monetization of the Xvantage platform and AI-driven sales, a key strategic initiative.

    IDA, our Intelligent Digital Assistant, continued to demonstrate measurable business value, generating approximately $1 billion in net revenue in Q2, nearly 7% of the company's net revenue, ahead of pace on our goal of double-digit revenue contribution by the end of the year.

    Q&A highlights

    6

    Characterize GPU deals and performance of ex-GPU demand, especially CPU, within the Advanced Solutions segment.

    GPU/AI infrastructure deals contributed significantly to upside, especially in APAC, across storage, server, and networking. Ex-GPU demand also saw good growth across all lines of business, geographies, and customer segments. GPU deals are low-cost to serve and working capital efficient, often closing late in the quarter.

    “We're absolutely participating in what we define as the AI infrastructure data center build-outs that are happening. A lot of that came in Asia-Pacific, which was part of the results.”

    asked by Katherine Murphy · answered by Paul Bay

    2 min read6 chapters

    Detailed Narrative

    01

    Xvantage Platform Evolution and Impact

    Xvantage is evolving into an intelligent operating system, embedding AI, automation, and data intelligence. This led to a 40% increase in time spent, 12% higher average order value, and 23% growth in average revenue per customer. Self-service orders reached 2.4 million (up 12% YoY), and Email-to-Order processed $1.4 billion in revenue (up 43% YoY). The Intelligent Digital Assistant (IDA) generated $1 billion in net revenue, nearly 7% of the company's total, with opportunities converting at 4x the traditional rate. Two additional patents were granted for Xvantage, reinforcing its differentiation in consumer-like end-user interface and AI-powered alerts.

    02

    AI Strategy and Enable AI Program

    Ingram Micro is moving customers from AI interest to practical deployment through its Enable AI program, which saw over 60% Q-o-Q growth in engaged customers and almost 100% increase in those moving to business case deployment. The program helps identify high-value use cases, build proofs of concept, and accelerate deployment, similar to how the company scaled cloud opportunities. This includes partnerships with key OEMs and Neoclouds to support mid-market MSPs and larger enterprise customers, with a focus on monetizing AI beyond infrastructure.

    03

    Strong Financial Performance and Operating Leverage

    The company delivered record Q2 results, with net revenue of $14.53 billion, gross profit of $959 million, and adjusted EPS of $0.82, all exceeding guidance. Gross profit dollars grew faster than revenue, and adjusted operating income increased nearly 40% YoY, demonstrating significant operating leverage. This was driven by disciplined execution, operating efficiency, and the benefits of Xvantage automation, which allows for growth without matching top-line growth in operating expenses.

    04

    Geographic and Segment Growth

    All four regions (North America, Asia Pacific, EMEA, Latin America) and three primary lines of business (Cloud, Advanced Solutions, Client and Endpoint Solutions) experienced double-digit revenue growth. Asia Pacific led with 28% FX-neutral growth, becoming the second-highest operating margin region and largest in operating income. Cloud was the fastest-growing line of business at 44% FX-neutral growth, bolstered by IaaS and cybersecurity, despite an 11% YoY impact from the CloudBlue divestiture.

    05

    Strategic Partnerships and Vendor Rationalization

    Ingram Micro is observing a trend of vendor partners, such as HPE, rationalizing their distribution ecosystems to "do more with less." The company's global presence, Centers of Excellence, extensive certifications, and Xvantage platform position it as a strategic partner for these vendors, enabling long-term co-investment and consistent service delivery across geographies. Google Cloud also validated its partnership with Ingram Micro for simplifying IT distribution and bringing Gemini models to more organizations.

    06

    Sustainability Achievements

    The company highlighted significant progress towards its "10 to 0 goals," including a cumulative 45% reduction in operational greenhouse gas emissions over three years. It achieved its 2030 target of diverting over 90% of waste from landfill and reduced safety incidents by over 70% since 2020. The 2025 Sustainable Impact Report is expected to be released in a few weeks, detailing further progress.

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