Insight Enterprises Inc (NASDAQ:NSIT) reported its fourth-quarter and full-year 2025 financial results, delivering a mixed performance relative to Wall Street expectations. The IT solutions integrator posted a slight revenue miss but exceeded adjusted earnings per share estimates, a dynamic reflected in the stock's muted pre-market trading activity.
Earnings Snapshot Versus Estimates
The company's results for the quarter ended December 31, 2025, presented a clear divergence between its top and bottom-line performance against analyst forecasts.
- Revenue: Consolidated net sales of $2.05 billion decreased 1% year-over-year and came in approximately 3.4% below the analyst consensus estimate of $2.12 billion.
- Adjusted EPS: Adjusted diluted earnings per share of $2.96 increased 11% from the prior year period and surpassed the average analyst estimate of $2.90 by approximately 2.2%.
For the full year 2025, net sales of $8.25 billion declined 5% from 2024, while adjusted diluted EPS of $9.87 saw a modest 2% increase.
Market Reaction and Price Action
The market's initial reaction to this mixed report appears cautiously positive, leaning on the earnings beat. In pre-market trading following the release, the stock showed a gain of approximately 2.1%. This uptick suggests investors are focusing on the company's profitability and margin expansion despite the softer revenue figure. The positive pre-market move stands in contrast to the stock's performance over the past month, which had seen a decline of roughly 7.1%.
Key Takeaways from the Quarterly Report
Beyond the headline numbers, Insight's earnings release highlighted a significant strategic shift towards higher-margin services and effective cost management.
- Margin Expansion Amidst Sales Pressure: The most notable achievement was a substantial improvement in profitability. Gross profit for the quarter grew 9% to $478.4 million, driving the consolidated gross margin up by 220 basis points to 23.4%. This indicates success in selling a richer mix of services and solutions.
- Services-Led Growth: The revenue composition tells a story of transformation. While product sales declined, services net sales grew 11% year-over-year. This shift towards a more recurring, high-value services business is a key strategic focus for the company.
- Geographic Performance: Growth was led by international markets. Net sales in EMEA (Europe, Middle East, and Africa) increased 8%, and APAC (Asia-Pacific) sales jumped 15%. The North American segment, which represents the bulk of revenue, saw a 3% decline.
- Management Commentary: President and CEO Joyce Mullen stated the company was "pleased" with the fourth-quarter results, citing "strong execution" in its Cloud business and growth in Core Services driven by recent acquisitions. She noted the delivery of record gross profit and margin, alongside adjusted earnings growth across all geographies.
Forward Outlook and Analyst Comparisons
Looking ahead, Insight Enterprises provided guidance for the full 2026 fiscal year. The company expects adjusted diluted earnings per share to be in a range of $11.00 to $11.50, which excludes stock-based compensation expense. At the midpoint of $11.25, this represents approximately 5% growth over the 2025 adjusted EPS of $10.75 (also excluding stock-based compensation).
This outlook can be compared to current analyst expectations:
- The company's gross margin guidance of approximately 21% for 2026 aligns with the full-year 2025 margin of 21.4%.
- The provided EPS outlook appears broadly in line with the trajectory implied by analyst estimates, which will be refined in the coming days.
For a detailed breakdown of future quarterly estimates and historical earnings performance, you can review the earnings and estimates data for NSIT.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
