Q2 2026 Ingram Micro Holding Corp Earnings Call Transcript
Key Points
- Record Q2 performance with net revenue of $14.5 billion, gross profit of $959 million, and adjusted EPS of $0.82, all exceeding guidance.
- Strong growth across all regions and business lines, with cloud revenue up 44% FX-neutral and double-digit growth in Advanced Solutions and Client & Endpoint Solutions.
- Xvantage platform driving measurable benefits: time spent up 40% YoY, average order value up 12%, and IDA generating ~$1 billion in net revenue (7% of total).
- Adjusted operating income grew nearly 40% YoY, with operating leverage improving 47 basis points, driven by automation and efficiency gains.
- Strategic partnerships expanding, including HPE selecting Ingram Micro as one of two global distribution partners, validating the company's scale and capabilities.
- AI initiatives gaining traction: Enable AI program saw 60%+ QoQ growth in customer engagement, and MCP adoption increased 50% in June alone.
- Strong balance sheet with net debt-to-EBITDA at 2.0x, improved working capital days by 3 days, and adjusted ROIC up 240 basis points YoY.
- Gross margin pressure from GPU/AI infrastructure deals, which are lower-margin fulfillment business, though they are working capital efficient.
- Asia Pacific region, now 30% of net sales, has a lower gross margin (4.47%) compared to the rest of the world (7.53%), impacting overall margins.
- Adjusted free cash flow was an outflow of $527 million in Q2, driven by higher working capital investment and strategic inventory purchases ahead of ASP increases.
- Supply constraints and ASP increases are expected to continue, with a 2-3% net revenue benefit in Q3 but also potential demand elasticity and longer lead times.
- Ongoing Middle East conflict is expected to have a $0.01-$0.02 EPS impact in Q3, adding to operational uncertainty.
- Q3 EPS guidance midpoint ($0.77) implies a sequential decline from Q2's $0.82, reflecting mixed factors and continued investment.
- Platinum's ownership reduced by 13% since March due to secondary offerings, which may create overhang on the stock.
Greetings, and welcome to the Ingram Micro second quarter 2026 earnings results. (Operator Instructions) Please note this conference is being recorded. I would now like to turn the conference over to your host, Willa McManmon. Please go ahead.
I'm here today with Paul Bay, Ingram Micro, CEO, and Mike Zilis, our CFO. Before I turn the call over to Paul, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws. All of these statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
For further details concerning these risks and uncertainties, please refer to today's earnings release and our SEC filings. Our forward-looking statements are based on information currently available to us, and we do not intend to update these statements except as required by law. During this call, we will also reference certain
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