Ingram Micro Holding Corporation reported fiscal fourth‑quarter 2025 results that included net sales of $14.88 billion, up 11.5% year‑over‑year, GAAP net income of $121.4 million ($0.51 per share) and non‑GAAP net income of $226.7 million ($0.96 per share). Adjusted free cash flow reached $1.63 billion, the highest quarterly level in more than a decade.
The quarter’s performance outpaced the prior year’s Q4, where revenue was $13.3 billion and non‑GAAP EPS was $0.92. Full‑year 2025 net sales totaled $52.6 billion, a 9.5% increase from 2024, while full‑year non‑GAAP net income rose 8.6% to $681.9 million.
Revenue growth was driven by strong demand across all segments. Client & Endpoint Solutions grew 8.8%, Advanced Solutions expanded 11.3% (FX‑neutral), and the Xvantage platform continued to gain traction. AI and GPU infrastructure deals added to revenue but carried lower margins, contributing to the mix shift.
Gross margin contracted 51 basis points year‑over‑year, largely due to a shift toward lower‑margin client and endpoint solutions and a mix change in the Asia Pacific region. AI deals compressed margins another 15 basis points, while operating expense leverage improved 74 basis points, helping to offset some margin pressure.
Management guided for fiscal 2026 net sales of $12.45 billion to $12.80 billion, gross profit of $840 million to $895 million, and diluted EPS of $0.67 to $0.75. The midpoint guidance represents a 2.8% year‑over‑year growth in net sales, indicating confidence in continued demand while acknowledging modest growth expectations.
Non‑GAAP EPS of $0.96 beat the high end of Ingram Micro’s own guidance, but it narrowly missed the analyst consensus of $0.97, a 1.03% surprise. GAAP EPS of $0.51 fell short of the analyst estimate of $0.67, a 23.6% miss. Revenue beat consensus estimates by about 5.3%, and analysts highlighted the record free cash flow as a positive sign.
CEO Paul Bay said the company “delivered a strong fourth quarter and full year, and we enter 2026 with confidence. We exceeded the high end of our net sales and EPS guidance and saw growth across all of our regions.” CFO Michael Zilis noted that the company “closed out the year, exceeding the high end of our guidance range for both net sales and earnings per share and generating $1.6 billion of adjusted free cash flow in the quarter.” He added that the guidance for net sales represents year‑over‑year growth of approximately 2.8% at the midpoint and that first‑quarter gross profit of $840 million to $895 million would translate to gross margins of roughly 6.87% at the midpoint.
The results underscore strong revenue momentum and a record free‑cash‑flow position, but margin compression signals pricing pressure from a mix shift toward lower‑margin products and AI deals. The continued acceleration of the Xvantage platform and AI initiatives positions Ingram Micro for higher‑value services, while the modest growth guidance reflects a cautious outlook amid margin headwinds. Long‑term prospects hinge on the company’s ability to execute its platform strategy and manage margin pressures while sustaining demand across its segments.
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