Ingram Micro Holding Corporation

Q2 net sales were $14.53 billion, up 13.6% year over year in U.S. dollars and up 12.6% FX-neutral. Gross profit was $959 million versus $839 million last year; gross margin was 6.60%, up 4 bps year over year, and adjusted gross margin excluding GPU/AI deal mix was 6.90%. Adjusted income from operations was $280 million, up 40% year over year, and non-GAAP diluted EPS was $0.82, up 34% year over year. For the segments, Cloud grew 44% FX-neutral, Advanced Solutions grew 13%, and Client and Endpoint Solutions grew 12%; APAC grew 28% FX-neutral, Latin America 19%, North America net sales were $5.28 billion, and EMEA net sales were $3.75 billion. For Q3, management guided net sales of $13.55 billion to $13.95 billion, gross profit of $910 million to $955 million, and non-GAAP EPS of $0.72 to $0.82, assuming about a 2% to 3% net revenue benefit from supply-constraint dynamics and a $0.01 to $0.02 Middle East conflict impact.

Paul Bay framed the quarter as proof that Ingram Micro’s operating model is compounding, with gross profit growing faster than revenue and the company shifting toward a more proactive, data-driven go-to-market motion. He emphasized that Xvantage is evolving into an intelligent operating system, citing higher engagement, more automation, and business outcomes like IDA converting at nearly 4x traditional quotes. His tone was confident and upbeat, but he also acknowledged that some advanced deals are taking longer and that the market is still dynamic.

Mike Zilis said the quarter exceeded the high end of guidance across the board, with net sales of $14.53 billion, gross profit of $959 million, gross margin of 6.60%, and EPS of $0.82. He highlighted margin leverage from operating efficiencies, with operating expenses at $722 million, or 4.97% of net sales, and adjusted operating income up 40% year over year. On the balance sheet, he noted net working capital of $4.9 billion, 26 days of working capital, $809 million in cash, $3.8 billion of debt, net leverage of 2.0x, and a $527 million adjusted free cash flow outflow tied to higher inventory and strategic procurement. He also said the quarterly dividend was increased 2.4% sequentially and that Platinum Equity ownership has fallen 13% since the beginning of March.

Analysts focused on GPU/AI infrastructure demand, possible budget shifts from software to hardware, partner ecosystem rationalization, gross margin pressure from AI mix, and the quarter’s cash usage. Management said GPU/AI deals were an important contributor but mainly a timing-driven, back-half-loaded category when supply becomes available, and that demand outside GPU was also healthy. On budget shifts, Paul Bay said they are seeing some mid-market and SMB customers break larger projects into phases, but nothing material is showing a one-way software-to-hardware reallocation. On cash flow, Mike Zilis said the $527 million outflow was driven by higher ASPs, strategic inventory builds, and working-capital investment, and he expects Q3 to remain seasonally cash outflow-prone but Q4 to be solid.