Insight Enterprises (NASDAQ:NSIT) Releases Earnings Results, Beats Expectations By $0.93 EPS

Key Points

• Insight Enterprises beat quarterly expectations: Adjusted EPS was $3.86, $0.93 above consensus, while revenue reached $2.40 billion, up 14.7% year over year. Growth was driven by infrastructure hardware, cloud, and core services.
• The company raised its FY 2026 outlook to adjusted EPS of $12.20–$12.70 and plans to complete its remaining $149 million share-repurchase authorization while pausing acquisitions.
• Management cited strong demand for AI-ready infrastructure, cloud, and cybersecurity, but expects slower second-half growth due to tougher comparisons, higher memory costs, supply-chain disruption, partner-program changes, and macroeconomic uncertainty.

Insight Enterprises (NASDAQ:NSIT - Get Free Report) issued its quarterly earnings results on Thursday. The software maker reported $3.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.93 by $0.93, Briefing.com reports. Insight Enterprises had a return on equity of 20.89% and a net margin of 2.17%.The business had revenue of $2.40 billion for the quarter, compared to analyst estimates of $2.18 billion. During the same quarter in the previous year, the firm earned $2.45 earnings per share. The company's revenue was up 14.7% on a year-over-year basis. Insight Enterprises updated its FY 2026 guidance to 12.200-12.700 EPS.

Here are the key takeaways from Insight Enterprises' conference call:

• Q2 results exceeded expectations: Revenue rose 15% to $2.4 billion, gross profit increased 18%, adjusted EBITDA grew 29%, and adjusted diluted EPS climbed 44% to $3.86. Infrastructure hardware, cloud, and core services were key growth drivers.
• Insight raised its 2026 outlook, now expecting gross profit growth of 8%–10% and adjusted diluted EPS of $12.20–$12.70, or approximately 16% growth at the midpoint. The company also plans to complete the remaining $149 million share-repurchase authorization this year while pausing M&A.
• Management reported strong demand for AI-ready infrastructure, cloud, cybersecurity, and related services, including servers, storage, networking, Microsoft Copilot, Azure, and Agent 365. Insight is investing in AI infrastructure and services while productizing offerings and expanding AI-enabled sales tools.
• The three-year “One Insight” plan will consolidate decentralized operations, integrate acquisitions onto common systems, streamline support functions, and reinvest efficiency savings into growth. Management expects to improve operating leverage while selectively adding sales and technical talent.
• Management expects slower growth in the second half, with the fourth quarter being the weakest EPS-growth period due to tougher comparisons, Google partner-program changes, memory-price increases, supply-chain disruption, and macroeconomic uncertainty. Hardware gross margin already declined 110 basis points because of pricing and client mix, while debt increased to approximately $1.5 billion.

Insight Enterprises Stock Performance

NASDAQ:NSIT traded up $8.89 during trading hours on Thursday, reaching $149.17. The company had a trading volume of 905,877 shares, compared to its average volume of 474,036. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.22 and a quick ratio of 1.17. Insight Enterprises has a 1-year low of $63.62 and a 1-year high of $153.91. The business's 50 day moving average price is $116.46 and its 200-day moving average price is $93.08. The firm has a market cap of $4.51 billion, a PE ratio of 26.08, a price-to-earnings-growth ratio of 1.26 and a beta of 1.07.

Insider Activity at Insight Enterprises

In other news, CFO James A. Morgado bought 2,290 shares of the business's stock in a transaction dated Monday, May 11th. The stock was purchased at an average cost of $87.25 per share, with a total value of $199,802.50. Following the acquisition, the chief financial officer directly owned 17,246 shares in the company, valued at $1,504,713.50. This trade represents a 15.31% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 1.21% of the stock is owned by insiders.

Institutional Trading of Insight Enterprises

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NSIT. EverSource Wealth Advisors LLC boosted its stake in shares of Insight Enterprises by 26.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 775 shares of the software maker's stock worth $107,000 after acquiring an additional 160 shares in the last quarter. State of Wyoming purchased a new position in shares of Insight Enterprises in the 2nd quarter valued at about $184,000. Integrated Wealth Concepts LLC acquired a new position in Insight Enterprises in the 1st quarter worth about $221,000. Cerity Partners LLC raised its holdings in Insight Enterprises by 22.7% in the 2nd quarter. Cerity Partners LLC now owns 1,643 shares of the software maker's stock worth $227,000 after purchasing an additional 304 shares during the period. Finally, Osaic Holdings Inc. boosted its position in Insight Enterprises by 32.5% during the second quarter. Osaic Holdings Inc. now owns 2,531 shares of the software maker's stock worth $355,000 after purchasing an additional 621 shares in the last quarter.

Analysts Set New Price Targets

A number of brokerages have issued reports on NSIT. Raymond James Financial restated an "outperform" rating and set a $175.00 price target on shares of Insight Enterprises in a research note on Thursday. Weiss Ratings raised shares of Insight Enterprises from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday. Zacks Research raised Insight Enterprises from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 7th. Wall Street Zen lowered Insight Enterprises from a "strong-buy" rating to a "buy" rating in a research note on Sunday. Finally, Needham & Company LLC raised Insight Enterprises to an "overweight" rating in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $118.75.

About Insight Enterprises

Insight Enterprises, Inc is a global technology provider headquartered in Tempe, Arizona. Founded in 1988, the company specializes in helping organizations harness the power of digital transformation by offering a comprehensive portfolio of IT hardware, software, cloud and licensing management solutions. Insight's expertise spans across the full technology lifecycle, from initial strategy and consulting to implementation, integration and ongoing managed services.

At the core of Insight's business are its consulting and professional services, which guide clients through complex technology environments and ensure optimal deployment of solutions.

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