Ingram Micro (NYSE:INGM) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Ingram Micro beat quarterly expectations: Revenue rose 20.8% year over year to $15.22 billion, while non-GAAP EPS reached $0.91, exceeding estimates by $0.13 and the high end of guidance.
• AI-driven demand remains a major growth engine. GPU and AI infrastructure revenue increased nearly 160% to more than $1.8 billion, while other key segments also posted strong growth; management raised its fourth-quarter and full-year 2026 outlook.
• Margins came under pressure despite improved cash generation. Gross margin declined 35 basis points to 6.55% because of the lower-margin AI business mix, while adjusted free cash flow reached $250 million and net-debt leverage improved to 1.9 times.

Ingram Micro (NYSE:INGM - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.78 by $0.13, FiscalAI reports. Ingram Micro had a net margin of 0.77% and a return on equity of 18.07%. The company had revenue of $15.22 billion for the quarter, compared to analysts' expectations of $13.83 billion. During the same period in the prior year, the business earned $0.72 earnings per share.

Here are the key takeaways from Ingram Micro's conference call:

• Record Q3 performance: Net sales rose 20.8% year over year to $15.22 billion, while non-GAAP diluted EPS increased 26% to $0.91, exceeding the high end of guidance.
• AI and broad-based demand remain strong. GPU and AI infrastructure revenue climbed nearly 160% to more than $1.8 billion, while Advanced Solutions grew 40%, Cloud 30%, and Lifecycle Services 35%; management expects continued healthy AI project growth in Q4.
• Management raised its Q4 and full-year 2026 outlook, forecasting Q4 sales of $17.5 billion to $17.9 billion and non-GAAP EPS of $1.05 to $1.15, supported by resilient demand and the additional 53rd week.
• Operating leverage and cash generation improved. OpEx declined to 4.62% of sales, adjusted operating income rose 25%, Q3 adjusted free cash flow reached $250 million, and net debt leverage improved to 1.9 times.
• Gross margin fell 35 basis points to 6.55%, primarily due to the growing mix of lower-margin GPU and AI infrastructure deals and geographic mix; management also expects Q4 gross margin to be seasonally lower, although excluding AI deals it projects margins in the high 6% range.

Ingram Micro Trading Up 0.5%

INGM stock traded up $0.13 during midday trading on Thursday, hitting $28.53. The company had a trading volume of 2,511,264 shares, compared to its average volume of 1,388,169. The stock has a market cap of $6.58 billion, a price-to-earnings ratio of 8.74, a PEG ratio of 0.73 and a beta of 1.76. Ingram Micro has a 52 week low of $19.03 and a 52 week high of $31.69. The company has a current ratio of 1.31, a quick ratio of 0.88 and a debt-to-equity ratio of 0.60. The stock's 50 day moving average price is $27.55 and its 200 day moving average price is $26.29.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on INGM. Deutsche Bank Aktiengesellschaft started coverage on shares of Ingram Micro in a report on Monday, August 31st. They issued a "hold" rating and a $30.00 price target on the stock. Truist Financial lifted their price objective on shares of Ingram Micro from $29.00 to $31.00 and gave the stock a "hold" rating in a report on Tuesday, August 4th. Zacks Research downgraded shares of Ingram Micro from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 19th. Morgan Stanley cut their target price on shares of Ingram Micro from $33.00 to $30.00 and set an "equal weight" rating for the company in a research report on Wednesday, September 16th. Finally, The Goldman Sachs Group reissued a "neutral" rating and issued a $33.00 target price on shares of Ingram Micro in a research note on Friday, July 31st. Four equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $30.50.

Insider Buying and Selling

In other Ingram Micro news, major shareholder Platinum Equity, Llc sold 1,968,750 shares of the firm's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $27.19, for a total value of $53,530,312.50. Following the sale, the insider owned 162,372,569 shares of the company's stock, valued at $4,414,910,151.11. This trade represents a 1.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.95% of the stock is owned by corporate insiders.

Ingram Micro Company Profile

Ingram Micro Inc is a global technology distribution and services company that connects technology manufacturers with businesses, resellers, systems integrators and other channel partners. Its portfolio includes hardware, software, cloud solutions, cybersecurity products, networking equipment, data-center technologies and communications solutions.

The company also provides value-added services such as cloud marketplace management, device lifecycle services, logistics, fulfillment, financing support, technical assistance and professional services.

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