Ingram Micro Posts Record Sales of $15.2 Billion, Up 20.8% in Third Quarter
Key Facts
Ingram Micro reported net sales of $15.2 billion in its fiscal third quarter ended September 26, 2026, up 20.8% from $12.6 billion in the same period a year earlier. The company said it exceeded the high end of its previous guidance across all financial metrics for the quarter. GAAP net income rose 31.8% to $131.1 million, or $0.57 per diluted share. Non-GAAP net income increased 24.8% to $210.6 million, with diluted earnings per share on that basis of $0.91. The results reflect simultaneous growth in sales and earnings, while the company recorded strong cash flows during the period.
Growth came across the main business lines, led by Advanced Solutions, which rose 40% globally, while Cloud Solutions grew 31%. Client and Endpoint Solutions increased 10%, and Other Services rose 35%. Chief Executive Paul Bay said the company delivered broad-based growth across its four regions and main business lines. He added that investments in platform, data and AI are helping deepen customer engagement and improve productivity. The chief financial officer said the strongest growth rates were in Advanced Solutions, including graphics processing units and AI infrastructure, and Cloud Solutions, while expense discipline and working capital supported earnings and cash flow.
By geography, North American sales rose 31.5% to $5.8 billion, compared with $4.4 billion in the third quarter of 2025. Asia-Pacific sales increased 22.3%, driven by growth of 25% in Advanced Solutions and 44% in Cloud Solutions. For comparison, second-quarter 2026 sales were $14.5 billion, up 13.6% year over year, placing third-quarter growth at a higher rate. Second-quarter non-GAAP net income also rose to $191.4 million, an annual increase of 34.5%. The comparison shows sales growth accelerating between the two quarters, with adjusted earnings continuing to grow year over year.
Higher sales were accompanied by increased operating income, with adjusted operating income rising 24.9% to $322.0 million and GAAP operating income increasing 31.4% to $293.8 million. But gross margin fell to 6.55% from 6.90% in the same period a year earlier. The company attributed this annual trend largely to growth in lower-margin graphics processing unit and AI infrastructure products, which cost less to deliver. Excluding large deals, margin was 7.06%, compared with 7.10% a year earlier, leaving it close to its previous level on that basis. Thus, expanding activity coincided with pressure on gross margin from the product mix, while operating income and net earnings increased.
Operating cash flow turned to $251.4 million in the third quarter, compared with cash usage of $146.0 million in the same period a year earlier. Adjusted free cash flow was $249.5 million, following cash usage of $109.9 million a year earlier. The company said cash flow from operations and adjusted free cash flow were the highest for a third quarter in more than 5 years. The chief financial officer linked support for earnings and liquidity to expense discipline and working capital management. These figures add a cash dimension to growth in sales and income, after the comparable quarter recorded cash usage on both measures.
For the 14-week fiscal fourth quarter ending January 2, 2027, Ingram Micro expects sales of between $17.5 billion and $17.9 billion, equivalent to annual growth of between 17.6% and 20.3%. The company forecasts non-GAAP diluted earnings per share of between $1.05 and $1.15, compared with $0.96 in the prior-year fourth quarter. These are specific quarterly forecasts and do not in themselves imply an increase in annual guidance; the company reaffirmed its financial framework for fiscal years 2026 to 2029, targeting compound annual sales growth of between 4% and 6% and non-GAAP net income growth of between 11% and 13%. On shareholder distributions, the company declared a quarterly dividend of $0.088 per share, up 2.3% from $0.086 in the third quarter, for shareholders of record on November 9, payable on November 23, 2026. Management was scheduled to discuss the results on a call on October 29, 2026, at 2:00 p.m. Eastern time; INGM shares closed at $28.4 on October 28.