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what it is
Insight sells computers, software, and IT services to businesses, schools, and governments.
how it gets paid
Last year Insight Ent made $8.2B in revenue.
why growth slowed
Revenue fell 5.2% last year. This profitability shift was driven by robust growth in the cloud and core services segments.
what just happened
Insight missed on EPS, posting $1.56 versus $2.2 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
65/100 earnings predictability — reasonably predictable
17.2x trailing p/e — the market's not buying it — or you found a deal
12.5% return on capital — nothing to write home about
xvary composite: 58/100 — below average
What they do
Insight sells computers, software, and IT services to businesses, schools, and governments.
Insight wins because your office still needs computers, software, and support. International was about 20% of 2024 sales, so one country does not run the show. Cloud (renting computing power instead of buying servers) grew 11% and core services grew 16% while total sales fell 5.2% to $8.2B.
How they make money
$8.2B
annual revenue · revenue declined -5.2% last year
total revenue
$8.2B
5.2%
The products that matter
hardware and software fulfillment
technology resale
$8.25B business
it's the revenue base that pays the bills, but the company kept only 4.0% of sales as net profit. when margins are that thin, scale helps and mistakes get expensive fast.
core engine
cloud sourcing and optimization
cloud services
+11% growth
this line grew 11% last year. it matters because higher-value service work is one reason gross margin reached 21.4% even while total sales fell.
mix shift
consulting and managed support
core services
+16% growth
core services grew 16%, the fastest growth number on the page. if you want proof this can earn more than a distributor, this is where you look first.
margin driver
Key numbers
$8.2B
annual sales
Your base is shrinking. Revenue fell 5.2%, so the company has less room to miss.
17.2x
trailing p/e
You pay 17.2 times last year's earnings. That is not cheap for a business with -5.2% sales.
8.0%
operating margin
This is the profit slice left after paying the bills. It is okay, not heroic.
$1.4B
debt
Debt of $1.4B is manageable, but it narrows flexibility if sales slip again.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $1.4B (34% of capital)
- net profit margin 4.3% — keeps 4 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in NSIT 3 years ago → it's now worth $6,100.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Insight missed on EPS, posting $1.56 versus $2.2 expected.
Revenue came in at $6.2B, and gross margin was 20.7%. The market cared more about the 29.1% EPS miss than the top-line size.
$6.2B
revenue
$1.56
eps
20.7%
gross margin
the number that mattered
The $1.56 result was 29.1% below $2.2. That is the number Wall Street punishes.
-
insight enterprises delivered a resilient performance in 2025.
-
the company consolidated reported revenues of $8.25 billion, a decline of 5% vs. prior year, yet achieved a record gross margin that increased 110 basis points, to 21.4%.
-
this profitability shift was driven by robust growth in the cloud and core services segments, which grew 11% and 16%, respectively.
-
the company has successfully navigated a major industry shift toward cloud services.this is no longer a side business, it’s the primary engine of the company’s recent margin expansion. these services are the high-value, highermargin offerings that drive profitability and customer attachment rates. insight’s focus here is evident in its partnerships and acquisitions, which have enhanced its technical expertise in key growth areas like artificial intelligence and cybersecurity. this should allow the company to capture larger, more technology-centric deals and long-term recurring revenue streams. while macroeconomic uncertainties persist, insight’s ability to adapt to client needs positions it to outperform in 2026. adjusted earnings, including stock-based compensation expense, should range between $10.10 to $10.60 per share, reflecting significant growth compared to 2025.
-
management anticipates gross profit to grow in the low-single digits with a gross margin of approximately 21%, supported by a multi-year cycle of ai infrastructure investment and enterprise grid modernization.
source: company earnings report, 2026
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What could go wrong
the #1 risk is services mix stalling while the resale base stays soft.
med
services growth cools off
cloud grew 11% and core services 16%. if those numbers step down, record gross margin starts to look like a peak instead of a new baseline.
margin improvement is the thesis. if it fades, you are left owning a 4.0% net-margin distributor at 17.2x trailing earnings.
med
vendors or larger rivals take the relationship
Insight does not control the products it sells. if major vendors push harder into direct sales, or bigger peers cut price to win share, NSIT gets squeezed in the middle.
that pressure touches the full $8.25B revenue base because resale is still the center of gravity.
med
enterprise IT budgets stay cautious
customers can delay hardware refreshes, software projects, and service work. that matters more when management is only guiding to low-single-digit gross profit growth.
thin margins leave little cushion. small sales misses can hit earnings harder than you expect.
these risks sit on top of an $8.25B business that kept only 4.0% as net profit. the math is simple: when margins are thin, small execution misses matter more.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin above 21%
21.4% was the record. if that number slips back below 21%, the market will remember this is still a distributor first.
trend
cloud and core services growth
cloud grew 11% and core services 16%. you want both lines outgrowing the rest of the business again next quarter.
risk
institutional selling pressure
institutions were net sellers for three straight quarters, including 105 buyers versus 108 sellers in 4q2025. a reversal would help. more selling would say sponsorship still has a leak.
calendar
2026 adjusted EPS guide
management set a $10.10–$10.60 range. that is your scoreboard for the next few quarters, especially if revenue stays soft.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see no clean near-term edge here.
risk profile
average
stability score 3. that puts it near the middle — not especially safe, not especially fragile.
chart momentum
below average
technical score 4. translation: the chart is not doing you any favors right now.
earnings predictability
65 / 100
earnings are readable, but not steady enough to sleep through a bad quarter.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 105 buyers vs. 108 sellers in 4q2025. total institutional holdings: 32.3M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$69
$150
$84
current price
$110
target midpoint · +31% from current · 3-5yr high: $190 (+125% · 23% ann'l return)
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