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1. Company Snapshot

1.a. Company Description

IInsight Enterprises, Inc., together with its subsidiaries, provides information technology (IT) hardware, software, and services solutions in the United States, Canada, Europe, the Middle East, Africa, and the Asia-Pacific.The company's solution portfolio includes cloud enablement, data and AI, DevOps, digital strategy, intelligent applications and edge, and IoT solutions, as well as transformation services.It also offers cloud and data center transformation; connected workplace; and supply chain optimization solutions.


In addition, the company provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services; and offers Software-as-a-Service subscription products.Further, it designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses.Additionally, the company sources, procures, stages, configures, integrates, tests, refurbishes, and redeploys IT products spanning endpoints to infrastructure; and offers software life cycle, and hardware warranty services.


It serves construction technology, enterprise business, financial services, health care and life sciences, manufacturing technology, retails and restaurants, service providers, small to medium business, and travel and tourism industries.The company was founded in 1988 and is headquartered in Tempe, Arizona.

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1.b. Last Insights on NSIT

Insight Enterprises' recent performance was negatively impacted by a 4% year-over-year decline in consolidated net sales, despite a 1% increase in hardware net sales. The company's Q3 earnings missed estimates, coming in at $2.43 per share versus the expected $2.49 per share. Consolidated net earnings decreased 12% year-over-year to $50.9 million. However, the company has been actively expanding its capabilities through acquisitions, including Sekuro and Inspire11, to strengthen its position in areas such as cybersecurity and AI-enabled solutions.

1.c. Company Highlights

2. Insight Enterprises' Q3 2025 Earnings: Mixed Results Amidst Strategic Progress

Insight Enterprises reported a revenue decline of 4% to $2 billion in Q3 2025, with adjusted diluted earnings per share (EPS) coming in at $2.43, slightly below estimates of $2.49. Despite the revenue decline, the company achieved a record gross margin of 21.7% and delivered 11% growth in adjusted earnings from operations and adjusted EPS. The cloud gross profit was above expectations, but was offset by lower-than-expected gross profit performance in core services and hardware. As James Morgado noted, "Combined with disciplined SG&A management, we drove a 5% increase in adjusted earnings from operations and an 11% increase in adjusted earnings per share."

Publication Date: Nov -03

📋 Highlights
  • Adjusted EPS Growth: Delivered 11% growth in adjusted diluted earnings per share, aligned with expectations.
  • Revenue Decline: Net revenue fell 4% year-over-year, driven by on-prem software shifting to cloud solutions.
  • Gross Margin Record: Achieved a record 21.7% total gross margin, up from previous quarters.
  • Cash Flow & Buybacks: Generated $249M in cash flow from operations and repurchased $75M of shares in Q3.
  • Acquisition Activity: Announced Inspire 11 ($212M) and Sekuro (AUD 130M) acquisitions to expand AI and cybersecurity capabilities.

Segment Performance

The company's commercial revenue was up for the sixth consecutive quarter, driven by the growth in cloud gross profit. However, the revenue decline was attributed to the netting impact of on-prem software migrating to cloud. The services business continues to undergo structural improvements, with the company making significant progress in its services practices acquired over the past two years.

Cash Flow and Investments

Insight Enterprises generated $249 million in cash flow from operations and repurchased approximately $75 million of shares. The company continues to anticipate cash flow from operations in the range of $300 million to $400 million for the year. The company has made significant investments in its services business, including the acquisition of Inspire 11 for approximately $212 million and the signing of an agreement to acquire Sekuro for an estimated AUD 130 million.

Outlook and Valuation

The company's guidance for 2025 includes gross profit being slightly down from 2024, with a gross margin of approximately 21%. Adjusted diluted EPS is expected to be between $9.60 to $9.90. With a P/E Ratio of 22.03 and EV/EBITDA of 11.04, the market appears to be pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.4%. The company's ROIC of 5.58% and ROE of 8.7% indicate a relatively efficient use of capital. The Net Debt / EBITDA ratio of 2.82 suggests a moderate level of leverage.

Strategic Progress and Leadership Transition

Despite the challenges in 2025, including macro headwinds and evolving client needs, Insight Enterprises has been retooling its team, sharpening its focus, and driving efficiencies in preparation for emerging AI opportunities. The company has announced the retirement of its CEO, Joyce Mullen, and has initiated a public search for her successor, aiming to ensure a smooth transition.

3. NewsRoom

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Insight Announces Date and Webcast Information for Upcoming Investor Events

Nov -25

Source: businesswire.com

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Insight Launches Insight AI, a New Way to Achieve AI Outcomes

Nov -12

Source: businesswire.com

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Here's What Key Metrics Tell Us About Insight Enterprises (NSIT) Q3 Earnings

Oct -30

Source: zacks.com

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Insight Enterprises, Inc. (NSIT) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Insight Enterprises (NSIT) Q3 Earnings and Revenues Miss Estimates

Oct -30

Source: zacks.com

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Insight Enterprises, Inc. Reports Third Quarter Results

Oct -30

Source: businesswire.com

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Insight Signs Definitive Agreement to Acquire Sekuro

Oct -20

Source: businesswire.com

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Insight Enterprises, Inc. to Report Third Quarter 2025 Financial Results on October 30, 2025

Oct -16

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.83%)

6. Segments

Hardware

Expected Growth: 6.5%

Insight Enterprises' 6.5% growth in Hardware segment is driven by increasing demand for cloud-based infrastructure, digital transformation initiatives, and rising adoption of IoT devices. Additionally, the company's strategic partnerships with leading OEMs, such as HP and Cisco, and its focus on providing customized IT solutions to clients, contribute to its growth momentum.

Software

Expected Growth: 7.5%

Insight Enterprises' software segment growth of 7.5% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Additionally, the company's strategic acquisitions, expanded partnerships, and investments in emerging technologies such as AI and IoT are contributing to its growth momentum.

Services

Expected Growth: 6.8%

Insight Enterprises' 6.8% growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. The company's expertise in IT consulting, hardware and software sales, and managed services resonates with clients seeking to modernize their infrastructure and improve operational efficiency.

7. Detailed Products

Cloud Solutions

Insight Enterprises, Inc. offers cloud solutions that enable businesses to migrate, manage, and optimize their cloud infrastructure, ensuring scalability, flexibility, and cost-effectiveness.

Cybersecurity Solutions

Insight Enterprises, Inc. provides cybersecurity solutions that help businesses protect themselves from cyber threats, ensuring the security and integrity of their data and systems.

Data Center Solutions

Insight Enterprises, Inc. offers data center solutions that help businesses design, build, and manage their data centers, ensuring high availability, scalability, and efficiency.

Digital Innovation Solutions

Insight Enterprises, Inc. provides digital innovation solutions that help businesses innovate and transform their operations, products, and services, ensuring competitiveness and growth.

IT Supply Chain Optimization Solutions

Insight Enterprises, Inc. offers IT supply chain optimization solutions that help businesses optimize their IT supply chain, ensuring cost savings, efficiency, and agility.

Managed Services

Insight Enterprises, Inc. provides managed services that help businesses outsource their IT operations, ensuring cost savings, efficiency, and improved productivity.

Networking Solutions

Insight Enterprises, Inc. offers networking solutions that help businesses design, implement, and manage their network infrastructure, ensuring high availability, scalability, and security.

Professional Services

Insight Enterprises, Inc. provides professional services that help businesses design, implement, and manage their IT solutions, ensuring successful project outcomes.

Software Solutions

Insight Enterprises, Inc. offers software solutions that help businesses optimize their software investments, ensuring cost savings, efficiency, and improved productivity.

Workplace Solutions

Insight Enterprises, Inc. provides workplace solutions that help businesses design, implement, and manage their workplace technology, ensuring productivity, collaboration, and innovation.

8. Insight Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Insight Enterprises, Inc. faces moderate threat from substitutes, as customers have limited alternatives for its IT solutions and services.

Bargaining Power Of Customers

Insight Enterprises, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Insight Enterprises, Inc. relies on a few large suppliers for its IT products and services, giving them moderate bargaining power.

Threat Of New Entrants

The IT industry has high barriers to entry, including significant capital requirements and complex technology infrastructure, making it difficult for new entrants to compete with Insight Enterprises, Inc.

Intensity Of Rivalry

The IT industry is highly competitive, with many established players, leading to intense rivalry among companies like Insight Enterprises, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.31%
Debt Cost 9.53%
Equity Weight 59.69%
Equity Cost 11.44%
WACC 10.67%
Leverage 67.54%

11. Quality Control: Insight Enterprises, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Insight Enterprises

A-Score: 3.8/10

Value: 5.3

Growth: 7.0

Quality: 3.7

Yield: 0.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.06$

Current Price

86.06$

Potential

-0.00%

Expected Cash-Flows