INSIGHT ENTERPRISES INC (NASDAQ:NSIT) Posts Mixed Q3 2025 Results, Sees Pre-Market Gain Despite Revenue Miss

Insight Enterprises Inc (NASDAQ:NSIT) reported financial results for the third quarter of 2025 that presented a mixed picture, with earnings per share and revenue falling short of analyst expectations. The market's immediate reaction, a notable pre-market price increase, suggests investors may be focusing on the company's profitability improvements and forward-looking guidance rather than the top-line miss.

Earnings and Revenue Versus Estimates

The company's performance against Wall Street forecasts reveals a clear divergence between profitability and sales growth.

• Adjusted EPS: Reported $2.43, an 11% increase year-over-year.
• Analyst EPS Estimate: Was $2.54, resulting in a miss of approximately $0.11 per share.
• Reported Revenue: Was $2.00 billion, a 4% decrease compared to the third quarter of 2024.
• Analyst Revenue Estimate: Was $2.20 billion, resulting in a significant miss of roughly $200 million.

While the company demonstrated an ability to grow its bottom line through margin expansion, the substantial shortfall in revenue indicates softer-than-anticipated demand, particularly in certain hardware and services segments.

Market Reaction and Price Action

The initial market response appears positive despite the earnings and revenue misses. A pre-market gain of over 3% indicates that investors are likely interpreting the results with a focus on other factors. This positive momentum could be attributed to the strong growth in adjusted profitability metrics and the company's reaffirmed full-year earnings guidance, which may have alleviated concerns about the quarterly sales performance. This reaction stands in contrast to the stock's performance over the past month, which had seen a decline.

Quarterly Performance Summary

The press release detailed several key financial and operational highlights for the quarter. Gross profit remained flat year-over-year at $434.2 million, but gross margin expanded by 100 basis points to 21.7%, indicating improved efficiency. The company also generated strong operating cash flow of $249.1 million. From a segment perspective, performance was varied.

• North America: Net sales decreased by 5%, but adjusted earnings from operations increased by 3%.
• EMEA: Net sales increased by 2%, and adjusted earnings from operations saw a significant 30% increase.
• APAC: Net sales were flat, while adjusted earnings from operations grew by 10%.

President and CEO Joyce Mullen noted that commercial net sales grew for the sixth consecutive quarter and cloud gross profit exceeded expectations, though these positives were offset by softer performance in Insight Core services and hardware.

Forward Outlook and Analyst Comparisons

The company provided specific guidance for the full year 2025, which offers a point of comparison with analyst expectations.

• Company's FY 2025 Adjusted EPS Guidance: Between $9.60 and $9.90.
• Analyst FY 2025 EPS Estimate: Was $9.94.

The company's outlook is slightly more conservative than the analyst consensus, potentially explaining some of the caution mixed with the positive market reaction. Insight Enterprises expects gross profit to be slightly down for the full year 2025, with a gross margin of approximately 21%.

For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the complete data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.