Abstract

Insight Enterprises will release fourth-quarter results on February 05, 2026 Pre-Market; this preview summarizes last quarter’s results, the company’s guidance, and Street expectations alongside recent institutional commentary for revenue, margins, and adjusted EPS.

Market Forecast

Consensus points to modest expansion this quarter, with total revenue estimated at $2.08 billion (up 0.28% year over year), EBIT forecast at $135.25 million (down 2.83% year over year), and adjusted EPS projected at $2.84 (up 12.48% year over year). The company-level setup implies stable to slightly pressured margins, with revenue growth driven by core client wins while mix shifts shape profitability. The main business outlook highlights steady demand in hardware, software, and services, with management focused on balanced growth and disciplined cost control to preserve gross margin and net margin. The most promising segment is services with $426.07 million last quarter, supported by recurring and project-based engagements that tend to exhibit more resilient growth versus transactional categories year over year.

Last Quarter Review

In the previous quarter, Insight Enterprises delivered revenue of $2.00 billion, a gross profit margin of 21.67%, GAAP net profit attributable to the parent company of $50.95 million, a net profit margin of 2.54%, and adjusted EPS of $2.43 (up 10.96% year over year). A notable highlight was sequential net profit growth of 8.55% despite soft top-line dynamics, reflecting execution on operating efficiency. By business line, hardware generated $1.14 billion, software was $433.55 million, and services contributed $426.07 million; services continued to support margin resilience with an improving mix year over year.

Current Quarter Outlook

Main business: Hardware, software, and services

The company’s main business remains diversified across hardware, software, and services. This quarter, revenue is forecast at $2.08 billion, and the commercial demand tone appears stable with slight growth year over year. Within hardware, device refresh cycles are still staggered but selective enterprise projects and data center modernization should underpin shipments. Software activity reflects ongoing license renewals and cloud adoption that support recurring gross profit dollars even when billing volumes fluctuate. Services remain the linchpin for profitability, helping sustain the 21.67% gross margin level seen last quarter. Project timing and utilization will influence quarter-to-quarter swings, but longer-term contracts are expected to mitigate volatility. Operating discipline is central as management balances growth with cost efficiency to protect the net margin near the recent 2.54% level.

Most promising business: Services

Services represented $426.07 million last quarter and continue to provide the most durable growth trajectory, supported by consulting, managed services, and lifecycle solutions. As clients prioritize multi-cloud operations, security, networking, and workplace modernization, services engagements can expand in scope, deepening wallet share and improving revenue visibility. This segment’s contribution typically lifts blended gross profit because services have structurally higher margins than transactional hardware. This quarter, utilization, pipeline conversion, and renewals in managed services are key determinants for sustaining adjusted EPS growth toward the $2.84 estimate. Upside could materialize if project milestones land as scheduled, while slippage or staffing inefficiencies could weigh on EBIT, which is currently projected to decline 2.83% year over year.

Key stock-price drivers this quarter

Three elements stand out for share-price sensitivity. First, the relationship between revenue mix and gross margin: a richer services and software mix can offset tepid hardware demand and support EPS expansion, while a heavier hardware skew could pressure margins. Second, operating expense control versus growth investments: the company’s ability to maintain SG&A discipline while executing on high-value services should influence EBIT relative to the $135.25 million forecast. Third, booking momentum and visibility into the first half of 2026: investors will parse commentary on backlog quality and client budget posture to gauge whether the modest 0.28% revenue growth can accelerate. Confirmation that software and services pipelines are broadening would underpin the EPS growth outlook, while indications of elongated deal cycles could moderate sentiment.

Analyst Opinions

Recent institutional commentary tilts cautiously positive, with a majority projecting slight revenue growth and expanding adjusted EPS even as EBIT edges lower year over year. Analysts emphasize the constructive mix shift toward services and software, noting this supports gross profit dollars and cushions variability in hardware spend. Several highlight that adjusted EPS of $2.84 implies continued execution on cost control and pricing discipline. The positive cohort argues that recurring and multi-year services engagements are enhancing earnings durability and should keep margins defensible even if transactional demand remains uneven. The minority cautious views point to potential delays in project timing and a slower recovery in large enterprise hardware rollouts, which could cap upside to revenue and EBIT. Overall, the prevailing stance remains biased to the upside for EPS progression, assuming services utilization remains healthy and backlog conversion proceeds as expected into early 2026.