Ingram Micro (INGM) Financials

Ingram Micro’s latest quarter shows a mixed picture: solid profitability on the income statement, but a sharp deterioration in operating cash flow. For Q1 2026, revenue came in at $13.96 billion, down from $14.88 billion in Q4 2025 and below the year-ago comparable quarter. Net income was $98.9 million, which is healthy, but cash from operations was deeply negative at -$977.9 million because of a large swing in working capital. That is the key issue investors should focus on.

What stands out positively is that Ingram Micro remained profitable and generated positive operating income of $222.9 million in Q1 2026. Gross profit margin also held up reasonably well, with gross profit of $926.0 million on revenue of $13.96 billion. The company is still producing meaningful earnings even in a softer revenue quarter.

However, the cash flow statement is much weaker than the income statement suggests. The company reported a -$1.17 billion change in operating assets and liabilities in Q1 2026, which drove operating cash flow negative despite positive net income and sizable non-cash add-backs like depreciation and amortization. This indicates a heavy working-capital drain, likely tied to receivables, inventory, or payables timing.

The balance sheet remains large and somewhat leveraged. As of Q1 2026, total assets were $20.95 billion and total liabilities were $16.74 billion, leaving equity of $4.20 billion. Current liabilities of $13.64 billion are high versus current assets of $17.92 billion, and the company still carries both short-term debt ($786.5 million) and long-term debt ($2.55 billion). Liquidity looks adequate on paper, but the cash burn this quarter is a caution flag.

Quarter-over-quarter trends show revenue and earnings were stronger in Q4 2025 than in Q1 2026. Q4 2025 revenue was $14.88 billion and net income was $121.4 million versus $98.9 million in Q1 2026. Operating income also fell from $309.7 million to $222.9 million. The decline suggests some normalization after a stronger prior quarter.

Over the last four years, Ingram Micro’s revenue base has generally been resilient but uneven quarter to quarter. Revenue ranged from about $11.33 billion in Q1 2024 to $14.88 billion in Q4 2025, showing that the business can scale significantly, but profitability is sensitive to margins, interest expense, and working capital movements.

• Profitable quarter: Q1 2026 net income of $98.9 million shows the company is still earning money despite softer revenue.
• Operating income remains positive: Q1 2026 operating income of $222.9 million indicates the core business is still producing profits.
• Gross profit remains sizable: Q1 2026 gross profit of $926.0 million suggests the company still has meaningful scale and pricing power.
• Operating assets still substantial: Total assets of $20.95 billion provide a large asset base supporting the business.
• Revenue eased sequentially: Q1 2026 revenue fell from Q4 2025, showing some near-term softness.
• EPS was stable: Basic and diluted EPS were both $0.42 in Q1 2026, indicating no dilution pressure in the quarter.
• Debt remains material: The balance sheet still carries significant short- and long-term borrowings.
• Interest expense is still meaningful: Q1 2026 interest expense of $70.5 million continues to pressure pre-tax earnings.
• Operating cash flow turned sharply negative: Q1 2026 operating cash flow was -$977.9 million, a major red flag.
• Working capital absorbed cash: A -$1.17 billion swing in operating assets and liabilities drove the cash flow deterioration.

Bottom line: Ingram Micro still looks profitable, but the latest quarter raises a major caution around cash conversion. If working capital normalizes, the company could look much healthier again. If not, investors may need to worry about pressure on liquidity and future balance sheet flexibility.