Ingram Micro (INGM) Financials

Ingram Micro’s recent results show a business with improving revenue scale and stronger profitability, but cash generation remains highly dependent on working-capital movements. The company’s Q2 2026 statements also reflect the seasonal and balance-sheet intensity of its distribution model, with large receivables, inventories and accounts-payable balances.

Revenue and earnings are trending higher. Quarterly revenue increased from $11.9 billion in Q3 2023 to $14.5 billion in Q2 2026. Q2 2026 revenue rose 13.6% from $12.8 billion in Q2 2025 and 4.1% from Q1 2026. Gross profit increased 14.2% year over year to $958.7 million, while operating income grew 65.5% to $236.0 million. Net income nearly tripled from $37.8 million in Q2 2025 to $110.9 million in Q2 2026, and diluted EPS increased from $0.16 to $0.48.

Profitability has improved despite relatively thin distribution-industry margins. Q2 2026 gross margin was approximately 6.6%, compared with 6.6% in Q2 2025 and 7.2% in Q2 2024. Operating margin improved to approximately 1.6% from 1.1% a year earlier, helped by stronger gross profit and lower restructuring charges. However, interest expense of $76.3 million and other expenses continued to reduce pretax earnings.

• Solid top-line momentum: Revenue has generally moved upward over the reported periods, reaching a record in the supplied data of $14.5 billion in Q2 2026.
• Significant earnings improvement: Q2 2026 net income rose to $110.9 million from $98.9 million in Q1 2026 and $37.8 million in Q2 2025.
• Operating leverage: Operating income increased faster than revenue year over year, lifting the operating margin to roughly 1.6%.
• Lower restructuring expense: The Q2 2026 restructuring charge was $8.3 million, down from $9.5 million in Q1 2026 and substantially below the $21,000 charge reported for Q2 2025.
• Growing shareholders’ equity: Total equity increased to $4.28 billion in Q2 2026 from $4.05 billion in Q2 2025, supported by retained earnings.
• Shareholder distributions continued: Ingram Micro paid approximately $19.4 million in dividends and repurchased $30 million of common stock during Q2 2026.
• Working-capital balances remain large: Q2 2026 accounts receivable totaled $10.7 billion and inventory totaled $6.0 billion, consistent with the company’s high-volume distribution model but important for investors to monitor.
• Investing cash flow was modestly positive: Investing activities provided $10.7 million in Q2 2026, while capital expenditures were $32.9 million before proceeds from asset sales and other investing activity.
• Operating cash flow remained negative: Ingram Micro used $533.2 million in operating cash during Q2 2026, following an even larger $977.9 million outflow in Q1 2026.
• Working capital consumed cash: Changes in operating assets and liabilities used $737.7 million in Q2 2026, compared with a $475.2 million use in Q2 2025. This indicates that earnings are not currently translating consistently into cash.
• Liquidity has weakened from mid-2025: Cash and equivalents declined to $809.0 million in Q2 2026 from $856.7 million in Q2 2025 and $916.0 million in Q1 2026.
• Debt and interest costs remain material: Short- and long-term debt totaled approximately $3.80 billion at Q2 2026, while interest expense exceeded interest income by roughly $61.4 million during the quarter.

The cash-flow trend is the main concern. Ingram Micro generated positive operating cash flow in Q4 2025, but operating cash flow was negative in every other supplied quarter from Q1 2024 through Q2 2026. The pattern suggests substantial seasonality and ongoing investment in receivables and inventory. Q2 2026 financing activities provided $405.1 million, helping offset operating cash use, but relying on financing to support cash balances is less favorable than funding growth through internally generated cash.

The balance sheet remains functional but highly leveraged toward short-term operating liabilities. Q2 2026 current assets of $18.5 billion exceeded current liabilities of $14.2 billion, implying a current ratio of approximately 1.3. However, accounts payable alone stood at $11.8 billion, while cash represented less than $1 billion. Investors should therefore watch collections, inventory turnover and supplier-payment requirements closely.

Overall, the statements show improving revenue, operating income and EPS, alongside lower restructuring costs and a gradually stronger equity base. The offset is weak recurring cash conversion, elevated working-capital requirements and meaningful debt-service costs. For the stock, sustained earnings growth will be more constructive if future quarters also show a return to positive operating cash flow without further increases in debt.