Earnings

Ingram Micro Sales Jump 20.8% To $15.2 Billion As GPU Demand Lifts Cash Flow

The IT distributor forecast fourth-quarter sales of $17.5 billion to $17.9 billion and raised its quarterly dividend to $0.088 a share.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Ingram Micro Sales Jump 20.8% To $15.2 Billion As GPU Demand Lifts Cash Flow

Ingram Micro, which distributes technology products and cloud services to resellers, reported third-quarter net sales of $15.2 billion, up 20.8% from a year earlier, and said results exceeded the high end of its own guidance on every financial metric. Operating cash flow swung to $251.4 million from $146.0 million used a year ago.

AI hardware drives growth, squeezes margin

Net income under standard accounting rose to $131.1 million, or $0.57 a diluted share, from $0.42 a year earlier. Adjusted earnings reached $0.91 a share, up 26.4%. Operating income climbed to $293.8 million from $223.5 million.

Advanced Solutions, a category covering servers, storage and networking, rose 40% worldwide, with GPU and AI infrastructure cited as a driver. Cloud-based Solutions rose 31% and Client and Endpoint Solutions rose 10%.

Gross margin slipped to 6.55% from 6.90%. The company blamed growth in lower-margin GPU and AI-infrastructure products; excluding those large deals, margin was 7.06%, against 7.10% a year earlier.

CEO Paul Bay called it a "record third-quarter performance" and said the company delivered growth across all four regions.

North America leads the regions

North American sales reached $5.8 billion, up 31.5%, powered by a 61% jump in Advanced Solutions as networking, server and GPU sales grew. EMEA sales rose 7.3% to $3.9 billion, Asia-Pacific rose 22.3% to $4.3 billion, and Latin America rose 16.7% to $1.1 billion.

Ingram Micro buys from vendors including Apple, HP Inc. and Lenovo and sells to more than 165,000 resellers in 57 countries, according to its latest annual report.

Cash, dividend and fourth-quarter outlook

The company said the $251 million of operating cash flow produced its highest third-quarter cash flow in more than five years, with adjusted free cash flow of $249.5 million against a $109.9 million use a year earlier. Chief Financial Officer Mike Zilis credited disciplined working capital management.

The board raised the quarterly dividend to $0.088 a share from $0.086, payable November 23 to holders of record November 9.

For the fourteen-week fourth quarter, ending January 2, 2027, Ingram Micro guided to net sales of $17.5 billion to $17.9 billion and adjusted earnings of $1.05 to $1.15 a share, versus $0.96 a year earlier. The company also reaffirmed its multi-year targets from its September Capital Markets Day.

Management hosts its earnings call at 5:00 p.m. Eastern Thursday.

Sources

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