INSIGHT ENTERPRISES INC
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
NSIT$158.25+3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000932696-26-000070
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0000932696-26-000081
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 160 previous paragraphs and 162 current paragraphs.
46 unchanged; 69 reworded; 46 added; 44 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (46)
Current report
•Compared to the three months ended September 30, 2025, gross margin contracted approximately 30 basis points to 21.4% of net sales in the three months ended September 30, 2026. The contraction was primarily driven by a higher mix of hardware net sales, which carry lower gross margins, compared to the same period in the prior year.
Current report
Our net sales by operating segment were as follows for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
Current report
•The increase in services net sales was primarily due to growth in Insight Delivered services and cloud solution offerings.
Current report
•Software net sales remained relatively flat compared to the prior-year period, as growth in software demand was offset by the continued migration of certain on-premise software solutions to cloud solutions, which are reported within services net sales.
Current report
•The increase in services net sales was primarily due to growth in Insight Delivered services, including contributions from the acquisition of Inspire11 and cloud solution offerings.
Current report
•The decrease in software net sales was primarily due to the continued migration of on-premise software to cloud solutions, which are reported within services net sales.
Current report
Net sales in EMEA increased 6%, or $18.3 million, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased by 7%, year over year. Services and hardware net sales increased by 18% and 12%, respectively, year over year, partially offset by a decrease in software net sales of 8%, year to year. The net changes for the three months ended September 30, 2026 were the result of the following:
Current report
•The increase in services net sales was primarily due to increases in agency net sales, attributable to the continued contribution from certain large agency transactions, and Insight Delivered services. These agency transactions represent arrangements in which we serve as a paid pass-through agent in "pay-when-paid" transactions for certain clients and their vendors in the United Kingdom and the United Arab Emirates (UAE). For additional information, see “– Liquidity and Capital Resources – Net cash provided by operating activities.”
Current report
•The increase in services net sales was primarily due to increases in agency net sales, attributable to the continued contribution from certain large agency transactions as discussed above, and Insight Delivered services.
Current report
Net sales in APAC increased 104%, or $61.3 million, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 93%, year over year. Hardware and services net sales increased by 354% and 89%, respectively, year over year, partially offset by a decrease in software net sales of 8%, year to year. The net changes for the three months ended September 30, 2026 were the result of the following:
Current report
•The increase in hardware net sales was due to higher volume of sales to large enterprise clients, primarily attributable to Sekuro.
Current report
•The increase in services net sales was primarily due to higher agency net sales and increased Insight Delivered services, with growth in Insight Delivered services largely attributable to Sekuro.
Current report
•The decrease in software net sales was primarily due to lower volume of sales across client sectors, with the continued migration of on-premise software to cloud solutions, which are reported net in services net sales, also contributing to the decrease.
Current report
•The increase in hardware net sales was primarily due to contributions from Sekuro, as well as higher volume of sales to large enterprise and corporate clients.
Current report
•The increase in services net sales was primarily due to higher agency net sales and increased Insight Delivered services, with growth in Insight Delivered services largely attributable to Sekuro.
Current report
•Decreases in services margin and product margin of 86 basis points and 35 basis points, respectively.
Current report
•The contraction in product margin primarily reflects a higher concentration of hardware sales, particularly infrastructure and devices offerings, which generally carry lower margins. Despite the margin contraction, hardware gross profit increased due to strong sales growth across these categories.
Current report
•An increase in services margin of 62 basis points, partially offset by a decrease in product margin of 26 basis points.
Current report
EMEA's gross profit for the three months ended September 30, 2026 increased 22%, or $16.3 million, year over year (increasing 23% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2025. As a percentage of net sales, gross margin expanded 360 basis points to 26.8%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•An increase in services margin of 407 basis points, partially offset by a decrease in product margin of 50 basis points.
Current report
•The increase in services margin was primarily driven by an expansion in margin contribution from certain large agency transactions as discussed above, cloud solution offerings, and Insight Delivered Services.
Current report
•The contraction in product margin was primarily the result of lower hardware margins and changes in product mix. This was partially offset by growth in software margins.
Current report
•An increase in services margin of 300 basis points, partially offset by a decrease in product margin of 67 basis points.
Current report
•The increase in services margin was primarily driven by higher margin contribution from certain large agency transactions as discussed above, cloud solution offerings, and Insight Delivered services.
Current report
•The contraction in product margin was primarily the result of lower hardware and software margins compared to the prior-year period, reflecting changes in product mix.
Current report
APAC's gross profit for the three months ended September 30, 2026 increased 121%, or $21.3 million, year over year (increasing 109% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2025. As a percentage of net sales, gross margin expanded 240 basis points to 32.5%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•Increases in services margin and product margin of 211 basis points and 30 basis points, respectively.
Current report
•The increase in product margin was primarily driven by higher margin contribution from hardware sales, largely attributable to Sekuro, partially offset by lower software margins compared to the prior-year period.
Current report
•An increase in services margin of 496 basis points, partially offset by a decrease in product margin of 78 basis points.
Current report
•The increase in services margin was primarily driven by margin contribution attributable to Sekuro.
Current report
During the nine months ended September 30, 2026, we recorded acquisition and integration related expenses of approximately $0.5 million. During the nine months ended September 30, 2025, we recorded acquisition and integration related expenses of approximately $3.1 million primarily related to certain acquisitions that closed in the fourth quarter of 2025.
Current report
North America's earnings from operations for the three months ended September 30, 2026 increased 1%, or $0.5 million, compared to the three months ended September 30, 2025. As a percentage of net sales, earnings from operations decreased by approximately 90 basis points to 4.2%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, including higher variable compensation, and higher severance and restructuring costs associated with the VSP, compared to the three months ended September 30, 2025.
Current report
North America's earnings from operations for the nine months ended September 30, 2026 increased 29%, or $59.8 million, compared to the nine months ended September 30, 2025. As a percentage of net sales, earnings from operations increased by approximately 60 basis points to 4.7%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, including higher variable compensation and higher acquisition-related earnout revaluation adjustments, as well as higher severance and restructuring costs associated with the VSP, compared to the nine months ended September 30, 2025.
Current report
EMEA's earnings from operations for the three months ended September 30, 2026 increased 53%, or $2.4 million (increasing 55% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2025. As a percentage of net sales, earnings from operations increased by approximately 60 basis points to 2.0%. The increase in earnings from operations was primarily driven by an increase in gross profit, largely attributable to the continued contribution from certain large agency transactions discussed above, partially offset by higher severance and restructuring costs associated with the VSP, and higher selling and administrative expenses, compared to the three months ended September 30, 2025.
Current report
EMEA's earnings from operations for the nine months ended September 30, 2026 increased 11% or $2.3 million (increasing 13% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2025. The increase in earnings from operations was primarily driven by an increase in gross profit, largely attributable to the continued contribution from certain large agency transactions discussed above, partially offset by higher severance and restructuring costs associated with the VSP and higher selling and administrative expenses, primarily related to transformation costs, compared to the nine months ended September 30, 2025.
Current report
APAC's earnings (loss) from operations for the three months ended September 30, 2026 decreased 551%, or $27.3 million (decreasing 541% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2025. As a percentage of net sales, earnings from operations declined to (18.6)%. The decrease in earnings from operations was primarily driven by the revaluation of earnout liabilities associated with Sekuro, partially offset by higher gross profit, compared to the three months ended September 30, 2025.
Current report
APAC's earnings (loss) from operations for the nine months ended September 30, 2026 decreased 191%, or $30.4 million (decreasing 188% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2025. As a percentage of net sales, earnings from operations declined to (5.2)%. The decrease in earnings from operations was primarily driven by the revaluation of earnout liabilities associated with Sekuro, partially offset by higher gross profit, compared to the nine months ended September 30, 2025.
Current report
APAC’s Adjusted earnings from operations for the three months ended September 30, 2026 increased 156%, or $10.1 million (increasing 148% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2025. As a percentage of net sales, Adjusted earnings from operations increased by approximately 270 basis points to 13.7%. The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit, largely attributable to Sekuro, partially offset by higher selling and administrative expenses.
Current report
Our effective tax rate was 35.1% for the nine months ended September 30, 2026, compared to 31.5% for the same period in 2025. The effective tax rate increased primarily due to higher non-deductible losses associated with the revaluation of earnout liabilities in the current period.
Current report
•Capital expenditures were $21.0 million and $17.6 million for the nine months ended September 30, 2026 and 2025, respectively.
Showing the first 40 of 46 passages. Open the source sections for the rest.
Removed paragraphs (44)
Previous report
•Compared to the three months ended June 30, 2025, gross margin expanded approximately 60 basis points to 21.7% of net sales in the three months ended June 30, 2026. This expansion reflects higher margin contributed by services net sales, including both cloud solution offerings and Insight Delivered services, compared to the same period in the prior year.
Previous report
Our net sales by operating segment were as follows for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous report
•The increase in services net sales was due to an increase in cloud solution offerings combined with an increase in Insight Delivered services including from the Inspire11 acquisition.
Previous report
•The decrease in software net sales was primarily due to the continued migration of on-premise software to cloud solutions (reported net in services net sales).
Previous report
Net sales in North America increased 7%, or $236.5 million, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven by increases in services and hardware net sales of 16% and
Previous report
•The increase in services net sales was primarily due to an increase in cloud solution offerings combined with an increase in Insight Delivered services including from the Inspire11 acquisition.
Previous report
•The decrease in software net sales was primarily due to the continued migration of on-premise software to cloud solutions (reported net in services net sales).
Previous report
Net sales in EMEA increased 8%, or $26.6 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased by 6%, year over year. Net sales of hardware and services increased by 20% and 14%, respectively, year over year, with software net sales decreasing by 5%, year to year. The net changes for the three months ended June 30, 2026 were the result of the following:
Previous report
•The increase in services net sales was primarily due to increases in Insight Delivered services and other agency net sales.
Previous report
•The increase in services net sales was primarily due to increases in Insight Delivered services and other agency net sales.
Previous report
Net sales in APAC increased 46%, or $27.1 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 36%, year over year. Net sales of hardware, services and software increased by 86%, 59% and 13%, respectively, year over year. The increases for the three months ended June 30, 2026 were the result of the following:
Previous report
•The increase in hardware net sales was due to higher volume of sales to large enterprise clients as well as due to the acquisition of Sekuro in November 2025.
Previous report
•The increase in services net sales was primarily due to the acquisition of Sekuro in November 2025.
Previous report
•The increase in hardware net sales was due to higher volume of sales to large enterprise and corporate clients as well as due to the acquisition of Sekuro in November 2025.
Previous report
•The increase in services net sales was primarily due to the acquisition of Sekuro in November 2025.
Previous report
•An expansion in services margin of 87 basis points, partially offset by a contraction in product margin of 64 basis points.
Previous report
•The contraction in product margin primarily reflects changes in hardware mix, including a higher proportion of lower-margin sales compared to the prior year period.
Previous report
•An expansion in services margin of 137 basis points, partially offset by a contraction in product margin of 21 basis points.
Previous report
•An increase in services margin of 256 basis points, partially offset by a contraction in product margin of 131 basis points.
Previous report
•The increase in services margin is primarily the result of an expansion in margin contribution from Insight Delivered services and in instances of software sales where Insight is the agent.
Previous report
EMEA's gross profit for the six months ended June 30, 2026 increased 17%, or $25.9 million, year over year (increasing 12% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 180 basis points to 24.1%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous report
•An increase in services margin of 252 basis points, partially offset by a contraction in product margin of 75 basis points.
Previous report
•The increase in services margin is primarily the result of an expansion in margin contribution from Insight Delivered services and in instances of software sales where Insight is the agent.
Previous report
APAC's gross profit for the three months ended June 30, 2026 increased 67%, or $12.3 million, year over year (increasing 56% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, gross margin expanded 450 basis points to 35.6%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous report
•A net expansion in services margin of 565 basis points, partially offset by a contraction in product margin of 115 basis points.
Previous report
•A net expansion in services margin of 668 basis points, partially offset by a contraction in product margin of 152 basis points.
Previous report
•The expansion in services margin is primarily driven by an expansion in margin contribution from the acquisition of Sekuro in November 2025 as well as an increase in cloud solution offerings.
Previous report
During each of the six months ended June 30, 2026 and 2025, we recorded acquisition and integration related expenses of approximately $0.3 million.
Previous report
North America's earnings from operations for the three months ended June 30, 2026 increased 64%, or $43.9 million, compared to the three months ended June 30, 2025. As a percentage of net sales, earnings from operations increased by approximately 170 basis points to 5.8%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, including expenses relating to the acquisition of Inspire11, when compared to the three months ended June 30, 2025.
Previous report
North America's earnings from operations for the six months ended June 30, 2026 increased 50%, or $59.3 million, compared to the six months ended June 30, 2025. As a percentage of net sales, earnings from operations increased by approximately 140 basis points to 4.9%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, including expenses relating to the acquisition of Inspire11, when compared to the six months ended June 30, 2025.
Previous report
EMEA's earnings from operations for the three months ended June 30, 2026 decreased 15%, or $1.7 million (decreasing 20% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, earnings from operations decreased by approximately 70 basis points to 2.5%. The decrease in earnings from operations was primarily driven by an increase in transformation and severance costs within operating expenses, partially offset by an increase in gross profit when compared to the three months ended June 30, 2025.
Previous report
EMEA's earnings from operations for the six months ended June 30, 2026 was relatively flat (decreasing 7% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, earnings from operations decreased by approximately 10 basis points to 2.2%. The slight decrease in earnings from operations was primarily driven by an increase in transformation and severance costs within operating expenses, partially offset by an increase in gross profit, when compared to the six months ended June 30, 2025.
Previous report
APAC's earnings from operations for the six months ended June 30, 2026 decreased 29%, or $3.2 million (decreasing 33% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, earnings from operations decreased by approximately 430 basis points to 4.9%. The decrease in earnings from operations was driven by expenses related to the acquisition of Sekuro, partially offset by an increase in gross profit, when compared to the six months ended June 30, 2025.
Previous report
APAC’s Adjusted earnings from operations for the three months ended June 30, 2026 increased 55%, or $3.9 million (increasing 48% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, Adjusted earnings from operations increased by approximately 70 basis points to 12.8%. The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit from the acquisition of Sekuro in November 2025, partially offset by an increase in selling and administrative expenses.
Previous report
APAC’s Adjusted earnings from operations for the six months ended June 30, 2026 increased 27%, or $3.2 million (increasing 20% excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 50 basis points to 9.5%. The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit from the acquisition of Sekuro in November 2025, partially offset by an increase in selling and administrative expenses.
Previous report
Our effective tax rate was 31.0% for the six months ended June 30, 2026, compared to 34.5% for the same period in 2025. The effective tax rate decreased primarily due to the impact of nonrecurring, nondeductible losses related to warrant fair value adjustments in the prior-year period, partially offset by a reduction in the valuation allowance on foreign tax credit carryforwards.
Previous report
•Capital expenditures were $13.9 million and $12.0 million for the six months ended June 30, 2026 and 2025, respectively.
Previous report
•We had net borrowings under our inventory financing facilities of $42.6 million during the six months ended June 30, 2026 compared to net borrowings of $2.1 million during the six months ended June 30, 2025.
Previous report
•Capital expenditures were $13.9 million and $12.0 million for the six months ended June 30, 2026 and 2025, respectively.
Previous report
Net cash provided by (used in) financing activities
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (69)
Previous wording
•Net sales of $2.4 billion increased 15% compared to the three months ended June 30, 2025. The increase was primarily due to increases in hardware and services net sales as well as continued net revenue recognition in instances where Insight is the agent, partially offset by a decrease in software net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales increased 14% compared to the second quarter of 2025.
Current wording
•Net sales of $2.4 billion increased 22% compared to the three months ended September 30, 2025. The increase was primarily due to increases in hardware and services net sales, partially offset by a decrease in software net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales also increased 22% compared to the third quarter of 2025.
Previous wording
•Gross profit of $521.6 million increased 18% compared to the three months ended June 30, 2025, primarily driven by increases in cloud solution offerings and Insight Delivered services. Excluding the effects of fluctuating foreign currency exchange rates, gross profit increased 17% compared to the second quarter of 2025.
Current wording
•Gross profit of $523.2 million increased 20% compared to the three months ended September 30, 2025, primarily driven by increases in hardware and services gross profit, partially offset by a decrease in software gross profit. Excluding the effects of fluctuating foreign currency exchange rates, gross profit also increased 20% compared to the third quarter of 2025.
Previous wording
•Earnings from operations increased 51%, year over year, to $131.0 million in the second quarter of 2026 compared to $86.5 million in the second quarter of 2025. The net change reflects an increase in gross profit, partially offset by an increase in selling and administrative expenses. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations increased 50% year over year.
Current wording
•Earnings from operations decreased 26%, year to year, to $68.7 million in the third quarter of 2026 compared to $93.1 million in the third quarter of 2025. The net change reflects increases in selling and administrative expenses, including higher acquisition-related earnout revaluation adjustments, and severance and restructuring expenses, net, including costs associated with the Company's Voluntary Separation Program ("VSP"), an initiative to simplify operations and align resources with strategic priorities, partially offset by an increase in gross profit. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations also decreased 26% year to year.
Previous wording
•Net earnings and diluted earnings per share were $77.6 million and $2.57, respectively, for the second quarter of 2026. This compares to net earnings of $46.9 million and diluted earnings per share of $1.46 for the second quarter of 2025. The increase in net earnings was primarily due to an increase in earnings from operations in the second quarter of 2026. Diluted earnings per share increased 76% year over year, primarily as a result of an increase in net earnings and a decrease in dilutive shares outstanding in the second quarter of 2026. Excluding the effects of fluctuating foreign currency exchange rates, diluted earnings per share increased 74% year over year.
Current wording
•Net earnings and diluted earnings per share were $22.2 million and $0.74, respectively, for the third quarter of 2026. This compares to net earnings of $50.9 million and diluted earnings per share of $1.62 for the third quarter of 2025. In the third quarter of 2026, the decrease in net earnings was primarily driven by higher acquisition-related earnout revaluation adjustments, as well as higher severance and restructuring costs associated with the VSP noted above, partially offset by an increase in gross profit. Diluted earnings per share decreased 54% year to year, primarily as a result of a decrease in net earnings, partially offset by a lower number of dilutive shares outstanding in the third quarter of 2026. Excluding the effects of fluctuating foreign currency exchange rates, diluted earnings per share decreased 53% year to year.
Previous wording
In discussing financial results for the three and six months ended June 30, 2026 and 2025, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See the "Use of Non-GAAP Financial Measures" section below for additional information and a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures.
Current wording
In discussing financial results for the three and nine months ended September 30, 2026 and 2025, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See the "Use of Non-GAAP Financial Measures" section below for additional information and a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures.
Previous wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities in the first half of 2026 consistent with the prior year. Interest rates are expected to hold steady and continue to remain higher than historical rates throughout most of 2026. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. Currently, our supply chain is impacted by the global memory chip shortage, which has resulted in lower overall supply and increased pricing and may result in further constrained overall supply and upward pressure on pricing. Additionally, international conflicts, including the war in Iran, may impact supply chain and increase inflation. We are mindful of the potential effects these conditions could have on our clients, partners and prospects in 2026 and beyond.
Current wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities through the third quarter of 2026 consistent with the prior year. Interest rates are expected to hold steady and continue to remain higher than historical rates through the remainder of 2026. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. Currently, our supply chain is impacted by the global memory chip shortage, which has resulted in lower overall supply and increased pricing and may result in further constrained overall supply and upward pressure on pricing. Additionally, international conflicts, including the war in Iran, may impact supply chain and increase inflation. We are mindful of the potential effects these conditions could have on our clients, partners and prospects for the remainder of 2026 and beyond.
Previous wording
The following table sets forth certain financial data as a percentage of net sales for the three and six months ended June 30, 2026 and 2025:
Current wording
The following table sets forth certain financial data as a percentage of net sales for the three and nine months ended September 30, 2026 and 2025:
Previous wording
Net Sales. Net sales of $2.4 billion for the three months ended June 30, 2026 increased 15%, year over year, compared to the three months ended June 30, 2025, reflecting increases in all our operating segments with the majority of the increase from our North America segment. Net sales of $4.5 billion for the six months ended June 30, 2026 increased 8%, year over year, compared to the six months ended June 30, 2025, reflecting increases in each of our operating segments with the largest increase in North America.
Current wording
Net Sales. Net sales of $2.4 billion for the three months ended September 30, 2026 increased 22%, year over year, compared to the three months ended September 30, 2025, driven by growth across all operating segments. Net sales of $7.0 billion for the nine months ended September 30, 2026 increased 12%, year over year, compared to the nine months ended September 30, 2025, also reflecting increases across each of our operating segments.
Previous wording
Our net sales by offering category for North America for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Current wording
Our net sales by offering category for North America for the three and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
Net sales in North America increased 15%, or $254.4 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by increases in hardware and services net sales of 20% and 19%, respectively. The increase was partially offset by a decrease in software net sales of 8%, year to year. The net changes for the three months ended June 30, 2026 were the result of the following:
Current wording
Net sales in North America increased 22%, or $358.2 million, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by increases in hardware and services net sales of 30% and 15%, respectively. The increase was partially offset by relatively flat software net sales, year over year. The net changes for the three months ended September 30, 2026 were the result of the following:
Previous wording
•The increase in hardware net sales was primarily driven by an increase across client segments, led by growth from large enterprise and corporate clients, and supported by higher average selling prices.
Current wording
•The increase in hardware net sales was primarily driven by growth in infrastructure and devices offerings across client segments, led by large enterprise and corporate clients.
Previous wording
13%, respectively, year over year. This increase was partially offset by a decrease in software net sales of 19%, year to year. The net changes for the six months ended June 30, 2026 were the result of the following:
Current wording
Net sales in North America increased 12%, or $594.7 million, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, driven by increases in hardware and services net sales of 19% and 15%, respectively, year over year. This increase was partially offset by a decrease in software net sales of 14%, year to year. The net changes for the nine months ended September 30, 2026 were the result of the following:
Previous wording
•The increase in hardware net sales was primarily driven by an increase across client segments, led by growth from large enterprise and corporate clients, and supported by higher average selling prices.
Current wording
•The increase in hardware net sales was primarily driven by growth in infrastructure and devices offerings across client segments, led by large enterprise and corporate clients.
Previous wording
Our net sales by offering category for EMEA for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Current wording
Our net sales by offering category for EMEA for the three and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients with the continued migration of on-premise software to cloud solutions (reported net in services net sales) also contributing to the decrease.
Current wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients, with the continued migration of on-premise software to cloud solutions, which are reported net in services net sales, also contributing to the decrease.
Previous wording
Net sales in EMEA increased 8%, or $56.6 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased 3%, year over year. Net sales of services and hardware increased by 17% and15%, respectively, year over year, partially offset by a decrease in software net sales of 2%, year to year. The net changes for the six months ended June 30, 2026 were the result of the following:
Current wording
Net sales in EMEA increased 7%, or $74.9 million, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased 4%, year over year. Services and hardware net sales increased by 17% and 14%, respectively, year over year, partially offset by a decrease in software net sales of 4%, year to year. The net changes for the nine months ended September 30, 2026 were the result of the following:
Previous wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and corporate clients with the continued migration of on-premise software to cloud solutions (reported net in services net sales) also contributing to the decrease.
Current wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and corporate clients, with the continued migration of on-premise software to cloud solutions, which are reported net in services net sales, also contributing to the decrease.
Previous wording
Our net sales by offering category for APAC for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Current wording
Our net sales by offering category for APAC for the three and nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
Net sales in APAC increased 33%, or $39.3 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased by 23%, year over year. Net sales of hardware and services increased by 94% and 61%, respectively, year over year. These increases were partially offset by a decrease in software net sales of 11%, year to year. The net changes for the six months ended June 30, 2026 were the result of the following:
Current wording
Net sales in APAC increased 57%, or $100.6 million, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased by 46%, year over year. Net sales of hardware and services increased by 204% and 71%, respectively, year over year. These increases were partially offset by a decrease in software net sales of 10%, year to year. The net changes for the nine months ended September 30, 2026 were the result of the following:
Previous wording
•The decrease in software net sales was due to the continued migration of on-premise software to cloud solutions (reported net in services net sales) with the shift led primarily by corporate and public sector clients.
Current wording
•The decrease in software net sales was due to the continued migration of on-premise software to cloud solutions, which are reported net in services net sales, with the shift led primarily by corporate and public sector clients.
Previous wording
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and six months ended June 30, 2026 and 2025:
Current wording
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and nine months ended September 30, 2026 and 2025:
Previous wording
Gross Profit. Gross profit increased 18%, or $79.3 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, with gross margin expanding approximately 60 basis points to 21.7% for the three months ended June 30, 2026 compared to 21.1% for the three months ended June 30, 2025. Gross profit increased 16%, or $134.9 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, with gross margin expanding approximately 150 basis points to 21.7% for the six months ended June 30, 2026 compared to 20.2% for the six months ended June 30, 2025.
Current wording
Gross Profit. Gross profit increased 20%, or $89.0 million, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, with gross margin contracting approximately 30 basis points to 21.4% for the three months ended September 30, 2026 compared to 21.7% for the three months ended September 30, 2025. Gross profit increased 17%, or $224.0 million, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, with gross margin expanding approximately 90 basis points to 21.6% for the nine months ended September 30, 2026 compared to 20.7% for the nine months ended September 30, 2025.
Previous wording
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Current wording
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
Previous wording
North America's gross profit for the three months ended June 30, 2026 increased 16%, or $56.0 million, compared to the three months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 20 basis points to 20.5%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current wording
North America's gross profit for the three months ended September 30, 2026 increased 15%, or $51.4 million, compared to the three months ended September 30, 2025. As a percentage of net sales, gross margin contracted approximately 130 basis points to 19.8%, year to year. The year to year net contraction in gross margin was primarily attributable to the following:
Previous wording
•The increase in services margin primarily reflects an increase in margin contribution from cloud solution offerings and Insight Core services, partially offset by a contraction in warranty and partner delivered services.
Current wording
•The decrease in services margin primarily reflects lower margin contribution from cloud solution offerings and partner delivered services compared to the prior year period.
Previous wording
North America's gross profit for the six months ended June 30, 2026 increased 14%, or $89.9 million, compared to the six months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 120 basis points to 20.7% for the six months ended June 30, 2026. The year over year net expansion in gross margin was primarily attributable to the following:
Current wording
North America's gross profit for the nine months ended September 30, 2026 increased 14%, or $141.3 million, compared to the nine months ended September 30, 2025. As a percentage of net sales, gross margin expanded approximately 40 basis points to 20.4% for the nine months ended September 30, 2026. The year over year net expansion in gross margin was primarily attributable to the following:
Previous wording
•The contraction in product margin primarily reflects a larger concentration of hardware in our product mix, along with lower margins compared to the prior year period.
Current wording
•The contraction in product margin primarily reflects a higher concentration of hardware sales, particularly infrastructure products, and lower hardware and software margins compared to the prior-year period.
Previous wording
EMEA's gross profit for the three months ended June 30, 2026 increased 13%, or $11.0 million, year over year (increasing 12% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, gross margin expanded 130 basis points to 24.9%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current wording
EMEA's gross profit for the nine months ended September 30, 2026 increased 18%, or $42.2 million, year over year (increasing 15% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2025. As a percentage of net sales, gross margin expanded approximately 230 basis points to 24.9%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous wording
•The expansion in services margin is primarily driven by an expansion in margin contribution from the acquisition of Sekuro in November 2025 as well as an increase in cloud solution offerings.
Current wording
•The increase in services margin is primarily driven by an expansion in margin contribution attributable to Sekuro, as well as growth in cloud solution offerings.
Previous wording
APAC's gross profit for the six months ended June 30, 2026 increased 58%, or $19.2 million, year over year (increasing 47% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 510 basis points, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current wording
APAC's gross profit for the nine months ended September 30, 2026 increased 79%, or $40.5 million, year over year (increasing 68% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2025. As a percentage of net sales, gross margin expanded approximately 420 basis points, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous wording
•The contraction in product margin is primarily the result of sales of software at lower margins than in the prior year period.
Current wording
•The contraction in product margin was primarily the result of sales of hardware and software at lower margins compared to the prior-year period.
Previous wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended June 30, 2026 increased 9%, or $32.3 million, compared to the three months ended June 30, 2025 (an increase of 9% when excluding the effects of fluctuating foreign currency exchange rates). Selling and administrative expenses increased $77.1 million, or 11% (increasing 10% when excluding the effects of fluctuating foreign currency exchange rates), for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended September 30, 2026 increased 29%, or $95.7 million, compared to the three months ended September 30, 2025 (also increasing 29% when excluding the effects of fluctuating foreign currency exchange rates). Selling and administrative expenses increased $172.8 million, or 17% (increasing 16% when excluding the effects of fluctuating foreign currency exchange rates), for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Selling and administrative expenses decreased approximately 80 basis points as a percentage of net sales in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The overall net increase in selling and administrative expenses reflects increases in personnel costs of $27.3 million, depreciation and amortization expense of $2.8 million and legal and professional fees of $2.7 million. The increase in personnel costs was driven by variable compensation costs and expenses from acquisitions in the fourth quarter of 2025. The increase in depreciation and amortization expenses reflects higher amortization of assets associated with acquisitions in the fourth quarter of 2025. The increase in legal and professional fees primarily relates to consulting projects related to transformation of our global internal systems and EMEA specific transformation. We also incurred transformation costs in the current and prior year periods of $9.8 million and $7.0 million, respectively. We have been undergoing a transformation of our business in phases across the global organization to help us achieve our strategic objectives, including becoming a leading solutions integrator. These costs are unique in nature to the individual transformation phases and are generally not expected to recur in the longer term.
Current wording
Selling and administrative expenses increased approximately 100 basis points as a percentage of net sales in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The overall net increase in selling and administrative expenses reflects increases in other expenses of $46.1 million, personnel costs of $43.7 million, legal and professional fees of $2.5 million, depreciation and amortization expense of $2.1 million and marketing expenses of $2.1 million. The increase in other expenses primarily relates to higher earnout valuation adjustments associated with the acquisitions of Sekuro and Inspire11. The increase in personnel costs was primarily driven by variable compensation costs and expenses from acquisitions in the fourth quarter of 2025. The increase in depreciation and amortization expenses reflects higher amortization of assets associated with acquisitions in the fourth quarter of 2025.
Previous wording
Selling and administrative expenses increased approximately 50 basis points as a percentage of net sales in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The overall net increase in selling and administrative expenses primarily reflects increases in personnel costs of $51.3 million, depreciation and amortization expenses of $5.4 million and other expenses of $13.7 million. The increase in personnel costs was driven by variable compensation costs and expenses from acquisitions in the fourth quarter of 2025. The increase in depreciation and amortization expenses reflects higher amortization of assets associated with acquisitions in the fourth quarter of 2025. The increase in other expenses includes the net loss on revaluation of earnout liabilities of approximately $25.6 million from the acquisitions of InfoCenter, Inspire11 and Sekuro for the six months ended June 30, 2026 compared to a net loss on revaluation of earnout liabilities of $15.4 million from the acquisition of InfoCenter for the six months ended June 30, 2025. We incurred an impairment loss of approximately $2.0 million in the six months ended June 30, 2026 compared to an impairment loss of approximately $12.6 million in the six months ended June 30, 2025 relating to the Santa Monica property that was reclassified to held for sale in April 2025 and subsequently sold in April 2026. We also incurred transformation costs, as discussed above, in the current and prior year periods of $16.3 million and $8.3 million, respectively.
Current wording
Selling and administrative expenses increased approximately 70 basis points as a percentage of net sales in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The overall net increase in selling and administrative expenses primarily reflects increases in personnel costs of $91.6 million, other expenses of $62.8 million, depreciation and amortization expenses of $7.5 million, legal and professional fees of $4.3 million, travel and entertainment expenses of $3.5 million, and marketing expenses of $3.2 million. The increase in personnel costs was driven by variable compensation costs and expenses from acquisitions in the fourth quarter of 2025. The increase in other expenses includes a net loss on revaluation of earnout liabilities of approximately $64.2 million from the acquisitions of Infocenter, Inspire11 and Sekuro for the nine months ended September 30, 2026 compared to a net loss on revaluation of earnout liabilities of $19.2 million for the nine months ended September 30, 2025. We also incurred an impairment loss of approximately $1.8 million in the nine months ended September 30, 2026 compared to an impairment loss of approximately $12.6 million in the nine months ended September 30, 2025 relating to the Santa Monica property that was reclassified to held for sale in April 2025 and subsequently sold in April 2026. We also incurred transformation costs, in the current and prior year periods, of $17.3 million and $11.2 million, respectively, relating to the transformation of our business in phases across the global organization to help us achieve our strategic objectives, including becoming a leading solutions integrator. The increase in depreciation and amortization expenses reflects higher amortization of assets associated with acquisitions in the fourth quarter of 2025.
Previous wording
Severance and Restructuring Expenses, net. During the three months ended June 30, 2026, we recorded severance and restructuring expenses, net of adjustments, of approximately $5.8 million. Comparatively, during the three months ended June 30, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $3.4 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Current wording
Severance and Restructuring Expenses, net. During the three months ended September 30, 2026, we recorded severance and restructuring expenses, net of adjustments, of approximately $25.7 million. Comparatively, during the three months ended September 30, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $5.4 million. The increase was primarily driven by costs associated with the Company's VSP initiated during the third quarter of 2026. The VSP resulted in approximately $17.2 million of severance and related benefit costs. In addition, the severance charges in both periods included costs associated with a realignment of certain roles and responsibilities and reductions in workforce.
Previous wording
During the six months ended June 30, 2026, we recorded severance and restructuring expense, net of adjustments, of approximately $12.3 million. Comparatively, during the six months ended June 30, 2025, we recorded severance and restructuring expense, net of adjustments, of approximately $10.4 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Current wording
During the nine months ended September 30, 2026, we recorded severance and restructuring expense, net of adjustments, of approximately $37.9 million. Comparatively, during the nine months ended September 30, 2025, we recorded severance and restructuring expense, net of adjustments, of approximately $15.8 million. The increase was primarily driven by costs associated with the VSP initiated during the third quarter of 2026, as well as other workforce optimization activities undertaken during the period. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Previous wording
Acquisition and Integration Related Expenses. During the three months ended June 30, 2026, we recorded acquisition and integration related expenses of approximately $0.3 million. During the three months ended June 30, 2025, we recorded acquisition and integration related expenses of approximately $0.1 million
Current wording
Acquisition and Integration Related Expenses. During the three months ended September 30, 2026, we recorded acquisition and integration related expenses of approximately $0.2 million. During the three months ended September 30, 2025, we recorded acquisition and integration related expenses of approximately $2.8 million primarily related to certain acquisitions that closed in the fourth quarter of 2025.
Previous wording
Earnings from Operations. Earnings from operations increased 51%, or $44.4 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three months ended June 30, 2026 and 2025 (dollars in thousands):
Current wording
Earnings (Loss) from Operations. Earnings from operations decreased 26%, or $24.4 million, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Earnings from operations increased 13%, or $31.6 million, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
Previous wording
Adjusted Earnings from Operations. Adjusted earnings from operations increased 31%, or $42.6 million, year over year, in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Adjusted earnings from operations increased 29%, or $72.6 million, year over year, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for the three months ended June 30, 2026 and 2025 (dollars in thousands):
Current wording
Adjusted Earnings from Operations. Adjusted earnings from operations increased 23%, or $31.6 million, year over year, in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Adjusted earnings from operations increased 27%, or $104.2 million, year over year, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
Previous wording
North America’s Adjusted earnings from operations for the three months ended June 30, 2026 increased 36%, or $39.1 million, compared to the three months ended June 30, 2025. As a percentage of net sales, Adjusted earnings from operations increased by approximately 120 basis points to 7.7%. The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses.
Current wording
North America’s Adjusted earnings from operations for the three months ended September 30, 2026 increased 13%, or $15.3 million, compared to the three months ended September 30, 2025. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 50 basis points to 6.7%. The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, primarily due to increased variable compensation expense.
Showing the first 40 of 69 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•During the nine months ended September 30, 2025, we made earnout and acquisition related payments of $20.2 million primarily associated with our acquisition of Infocenter.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•The increase in software net sales was driven by higher volume of sales to public sector clients.