Insight Enterprises, Inc.

Q2 2026 net revenue was $2.4 billion, up 15% in U.S. dollars and 14% in constant currency. Gross profit increased 18%; cloud gross profit was $171 million, up 39%; core services gross profit was $95 million, up 21%; hardware gross profit rose 10%; total gross margin was 21.7%, up 60 basis points; adjusted EBITDA was $190 million, up 29%, with margin of 7.9%; and adjusted diluted EPS was $3.86, up 44% in U.S. dollars and 43% in constant currency. For the full year 2026, Insight raised gross profit growth guidance to 8% to 10%, expects gross margin of approximately 21.5% to 22%, and now expects adjusted diluted EPS of $12.20 to $12.70. The company still expects cash flow from operations of $300 million to $400 million, interest and other expenses of about $95 million, an effective tax rate of 25.5% to 26.5%, capital expenditures of $20 million to $30 million, and an average share count of about 30 million.

Jack Azagury said the quarter showed that Insight’s “pivot to become the leading solution integrator for the age of AI is working,” with strong momentum in cloud, infrastructure hardware, and core services. He emphasized that the company is moving from strategy to execution through the new One Insight plan, which will focus investment on AI infrastructure and AI services, while also simplifying the operating model and strengthening talent. His tone was confident but disciplined: he repeatedly stressed focus, execution, and using operational efficiencies to fund growth without sacrificing leverage.

James Morgado highlighted broad-based Q2 strength and favorable operating leverage, noting that adjusted SG&A increased 12% versus gross profit growth of 18%, which helped drive adjusted EBITDA up to $190 million. He cited $12 million of cash flow used in Q2 and $20 million generated year to date, while still expecting full-year operating cash flow of $300 million to $400 million because cash generation is typically stronger in the second half. He also said total debt was approximately $1.5 billion, net leverage was 1.7, and the company had about $1 billion available under its $2 billion ABL facility; Insight repurchased $75 million of stock in Q2 and plans to exhaust the remaining $149 million authorization this year.

Analysts focused on how Insight will balance new growth investment with operating leverage, and Jack said the company intends to reinvest only a portion of efficiency gains while still improving margins and leverage. Questions also pressed on why second-half growth should slow; management pointed to tougher comparisons, the anniversary of prior acquisitions, lingering Google partner program effects, and prudence around memory pricing, supply chain disruption, and macro uncertainty. On hardware, Jack said device unit trends remain slightly down but are offset by higher ASPs, while infrastructure hardware remains strong; on AI/server demand, he said the server business is very strong and agreed that some workloads appear to be moving back on-prem for security, latency, and cost reasons. On capital allocation, Jack said the company is pausing M&A for now and prioritizing organic execution and share repurchases.