Insight Enterprises (NASDAQ:NSIT) Posts Earnings Results, Beats Estimates By $0.14 EPS

Insight Enterprises (NASDAQ:NSIT) announced its earnings results on Thursday. The software maker reported $2.96 EPS for the quarter, beating analysts’ consensus estimates of $2.82 by $0.14, FiscalAI reports. The business had revenue of $2.05 billion during the quarter, compared to analysts’ expectations of $2.08 billion. Insight Enterprises had a net margin of 1.72% and a return on equity of 19.20%. The firm’s revenue was down 1.2% on a year-over-year basis. During the same period in the prior year, the company earned $2.66 earnings per share. Insight Enterprises updated its FY 2026 guidance to 11.000-11.500 EPS.

Here are the key takeaways from Insight Enterprises’ conference call:

• Insight reported Q4 net revenue of $2.0B (down 1%) but delivered record gross profit and expanded margins to 23.4%, driving Q4 adjusted diluted EPS of $2.96 (+11%) and record adjusted earnings from operations of $504M for FY2025.
• Cloud and core services were primary growth drivers — Q4 cloud gross profit rose 11% and FY cloud gross profit hit a record $495M, while core services gross profit grew 16% in Q4 to a record $320M (margin >32%), helped by acquisitions (Inspire11, Sekuro) and stronger advisory/cross‑sell momentum (including the new Prism AI platform).
• 2026 guidance is cautious: the company expects low‑single‑digit gross profit growth and ~21% gross margin, with adjusted diluted EPS of $10.10–$10.60 (or $11.00–$11.50 excluding stock‑based comp) and results weighted to the first half as corporate/large‑enterprise spending remains subdued.
• Liquidity and capital moves include ~$300M cash from operations in 2025, an increased buyback authorization (~$299M) and a planned $75M repurchase starting Q1, while total debt rose to ~$1.4B after acquisitions and warrant settlements.
• Key near‑term headwinds — a ~$70M gross profit impact from prior partner program changes (with a tail into 2026, concentrated in the Google/SADA solution line into H2) and expected memory/supply constraints that could raise PC and infrastructure prices and pressure unit demand.

Insight Enterprises Trading Up 1.5%

NSIT stock traded up $1.24 during midday trading on Thursday, hitting $82.89. The stock had a trading volume of 270,192 shares, compared to its average volume of 416,993. The company’s 50-day moving average price is $83.51 and its 200 day moving average price is $104.04. The firm has a market cap of $2.57 billion, a PE ratio of 19.32, a price-to-earnings-growth ratio of 0.38 and a beta of 0.93. Insight Enterprises has a 12-month low of $77.10 and a 12-month high of $181.92. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.30 and a quick ratio of 1.27.

Analyst Upgrades and Downgrades

NSIT has been the subject of several recent research reports. Weiss Ratings downgraded Insight Enterprises from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, January 5th. Wall Street Zen upgraded Insight Enterprises from a “hold” rating to a “buy” rating in a report on Saturday, January 10th. JPMorgan Chase & Co. restated an “underweight” rating and set a $90.00 price objective (down from $117.00) on shares of Insight Enterprises in a research report on Monday, December 15th. Canaccord Genuity Group initiated coverage on Insight Enterprises in a report on Wednesday, November 19th. They set a “hold” rating and a $100.00 price target for the company. Finally, Barrington Research reaffirmed an “outperform” rating and issued a $120.00 price target on shares of Insight Enterprises in a research report on Tuesday, January 27th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $103.33.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Creative Planning raised its holdings in shares of Insight Enterprises by 1.8% during the third quarter. Creative Planning now owns 7,630 shares of the software maker’s stock worth $865,000 after purchasing an additional 135 shares during the period. Raymond James Financial Inc. grew its stake in Insight Enterprises by 1.6% during the 3rd quarter. Raymond James Financial Inc. now owns 9,854 shares of the software maker’s stock worth $1,118,000 after buying an additional 154 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Insight Enterprises by 26.0% in the second quarter. EverSource Wealth Advisors LLC now owns 775 shares of the software maker’s stock worth $107,000 after buying an additional 160 shares during the period. Captrust Financial Advisors boosted its holdings in shares of Insight Enterprises by 4.5% during the second quarter. Captrust Financial Advisors now owns 3,782 shares of the software maker’s stock valued at $522,000 after acquiring an additional 162 shares during the period. Finally, Cerity Partners LLC increased its position in shares of Insight Enterprises by 22.7% during the 2nd quarter. Cerity Partners LLC now owns 1,643 shares of the software maker’s stock valued at $227,000 after purchasing an additional 304 shares during the period.

About Insight Enterprises

Insight Enterprises, Inc is a global technology provider headquartered in Tempe, Arizona. Founded in 1988, the company specializes in helping organizations harness the power of digital transformation by offering a comprehensive portfolio of IT hardware, software, cloud and licensing management solutions. Insight’s expertise spans across the full technology lifecycle, from initial strategy and consulting to implementation, integration and ongoing managed services.

At the core of Insight’s business are its consulting and professional services, which guide clients through complex technology environments and ensure optimal deployment of solutions.