Ingram Micro Posts Record Sales of $15.2 Billion, Up 20.8%
Key Facts
Ingram Micro reported net sales of $15.2 billion in the fiscal third quarter ended Sept. 26, 2026, up 20.8% year over year. The company said it exceeded the high end of its guidance across all financial measures for the quarter. GAAP net income rose 31.8% to $131.1 million, while diluted earnings per share were $0.57. On an adjusted basis, net income increased 24.8% to $210.6 million, and earnings per share were $0.91. Results came alongside improved operating cash flow and broader sales growth across business lines and geographies.
Advanced Solutions led growth, with global sales up 40%, while cloud solutions increased 31%. Client and Endpoint Solutions grew 10%, and other services rose 35%, extending the performance across the main business lines. Chief Executive Paul Bay said investments in the platform, data and AI “enable us to deepen customer engagement and improve productivity.” In North America, sales were $5.8 billion, compared with $4.4 billion a year earlier, up 31.5%. Advanced Solutions was a key driver in the region, with sales rising 61%.
In Asia-Pacific, sales increased 22.3% year over year, driven by growth of 25% in Advanced Solutions and 44% in cloud solutions. The company said currency translation into dollars had a negative impact of 2 percentage points on the year-over-year sales comparison. The figures support a picture of broad-based growth that Bay described as spanning all four regions and the main business lines. The chief executive also linked investment in the platform, data and AI to deeper customer engagement and improved productivity. Metrics from the Xvantage platform show one aspect of this digital strategy: average revenue per customer rose 39% in the 22 countries where the platform operates.
Self-service orders accounted for nearly 70% of orders through Xvantage, an increase of more than 10 percentage points year over year. During the quarter, the company launched ordering through the Model Context Protocol in 12 countries. Management said active customers using the protocol are expanding their business with the company at a rate nearly four times that of customers not connected to the platform. These metrics detail how the company is using its platform for ordering and commercial engagement, alongside growth in AI and cloud solutions. The company also said investments in the platform, data and AI are helping raise productivity and deepen customer relationships.
Operating profit improved alongside sales growth: GAAP operating income was $293.8 million, up 31.4%, while adjusted operating income rose 24.9% to $322 million. The operating income margin increased to 1.93% from 1.77% a year earlier. Gross profit margin, however, fell to 6.55% from 6.90%. The company attributed the decline to growth in graphics processing unit products and AI infrastructure, which carry lower margins and lower service delivery costs. Excluding large deals, the margin was 7.06%, compared with 7.10% a year earlier, keeping it close to its prior level on that basis.
Improved working capital management bolstered cash flow, with the company generating $251.4 million in cash from operations, compared with a use of $146 million in the year-earlier period. Adjusted free cash flow was $249.5 million, following a use of $109.9 million a year earlier. Management said it financed a significant portion of its working capital needs, particularly inventory and receivables, through supplier payment terms. It added that it improved its working capital conversion cycle by several days year over year. Management linked this discipline to supporting earnings and liquidity in the quarter, while the company said operating cash flow and adjusted free cash flow reached their highest levels for a third quarter in more than 5 years.
Ingram Micro expects fiscal fourth-quarter sales of between $17.5 billion and $17.9 billion and adjusted diluted earnings per share of between $1.05 and $1.15. The chief executive said the company was raising its fourth-quarter and fiscal 2026 guidance compared with the outlook it provided at its September capital markets day. The company reaffirmed its 2026–2029 financial framework, targeting compound annual sales growth of between 4% and 6% and adjusted net income growth of between 11% and 13%. It also raised its quarterly cash dividend to $0.088 per share, up 2.3% from the third-quarter dividend of $0.086; payment is due Nov. 23 to shareholders of record on Nov. 9, 2026. The earnings call was scheduled for Oct. 29, 2026, at 2:00 p.m. Pacific time, or 5:00 p.m. Eastern time.
Adjusted earnings per share of $0.91 exceeded Wall Street estimates of $0.85 by about 7.1%. The stock closed at $28.61 on Oct. 29, up 0.74% from the previous close. This places the trading reaction on the day of the results announcement in the context of the earnings beat, alongside the higher fourth-quarter and fiscal-year outlook. The announcement came after the market closed on Oct. 29, so the Oct. 28 close does not reflect the market's reaction to the results. The company had scheduled its earnings call for the same day at 2:00 p.m. Pacific time.