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Insight Enterprises Inc. (NSIT)
NASDAQ:NSIT
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Insight Enterprises
(NASDAQ:NSIT)
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Rating:59Neutral
Price Target:
$93.00
▲(13.51% Upside)
Action:ReiteratedDate:02/07/26
The score is held back primarily by weakening financial fundamentals (multi-year revenue declines, 2025 margin/earnings pressure, and higher leverage), partially offset by generally solid cash conversion and improving gross margin. The setup is mixed technically (near-term strength but below longer-term averages), while valuation appears moderate (P/E ~18). Earnings call guidance was cautiously positive with modest EPS growth targets and buyback support, but partner-program and macro headwinds remain key risks.
Positive Factors
Cash Flow Generation
The robust cash flow growth indicates efficient operations and financial flexibility, allowing Insight to invest in strategic initiatives and manage debt effectively.
Strategic Acquisitions
These acquisitions strengthen Insight's competitive position in AI and cybersecurity, aligning with industry trends and supporting long-term growth.
Expanded Credit Facility
The expanded credit facility enhances liquidity and financial flexibility, supporting Insight's operational needs and international growth plans.
Negative Factors
Revenue Decline
The decline in revenue reflects challenges in transitioning business models and adapting to changing client demands, impacting short-term financial performance.
Leverage Management
Higher leverage levels can constrain financial flexibility and increase risk, necessitating careful debt management to maintain stability.
Leadership Transition
Leadership changes can create uncertainty and impact strategic direction, requiring effective succession planning to ensure continuity and stability.
Insight Enterprises (NSIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.57B
Dividend YieldN/A
Average Volume (3M)402.34K
Price to Earnings (P/E)16.5
Beta (1Y)1.30
Revenue Growth-6.69%
EPS Growth-51.74%
CountryUS
Employees14,324
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)2.96
Shares Outstanding30,996,502
10 Day Avg. Volume339,951
30 Day Avg. Volume402,341
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)1.56
Price to Sales (P/S)0.31
P/FCF Ratio9.19
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda9.04
Forecast
1Y Price Target
$100.00Price Target Upside22.06% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)10.77
Revenue Forecast (FY)$8.43B
Insight Enterprises Business Overview & Revenue Model
Company DescriptionIInsight Enterprises, Inc., together with its subsidiaries, provides information technology (IT) hardware, software, and services solutions in the United States, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. The company's solution portfolio includes cloud enablement, data and AI, DevOps, digital strategy, intelligent applications and edge, and IoT solutions, as well as transformation services. It also offers cloud and data center transformation; connected workplace; and supply chain optimization solutions. In addition, the company provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services; and offers Software-as-a-Service subscription products. Further, it designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. Additionally, the company sources, procures, stages, configures, integrates, tests, refurbishes, and redeploys IT products spanning endpoints to infrastructure; and offers software life cycle, and hardware warranty services. It serves construction technology, enterprise business, financial services, health care and life sciences, manufacturing technology, retails and restaurants, service providers, small to medium business, and travel and tourism industries. The company was founded in 1988 and is headquartered in Tempe, Arizona.
How the Company Makes MoneyInsight Enterprises generates revenue through several key streams. Primarily, the company earns money by selling IT products, including hardware and software, to businesses and government entities. Additionally, Insight provides a range of services, such as consulting, implementation, and managed services, which contribute significantly to its revenue. The company also engages in cloud-related solutions, helping clients migrate to and manage their cloud environments, which has become a substantial revenue source as businesses increasingly adopt cloud technologies. Strategic partnerships with major technology vendors, such as Microsoft, Cisco, and Amazon Web Services, enhance Insight's product offerings and provide competitive advantages, further driving sales and profitability.
Insight Enterprises Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveys cautious optimism: the company delivered multiple record profitability and margin milestones (record adjusted earnings from operations, record cloud and core services gross profit, expanded gross margin) and demonstrated strong execution on services, cloud and strategic acquisitions. However, top-line pressure persisted (Q4 revenue -1%, FY revenue -5%), on‑prem software declines and a notable partner program headwind (~$70M) temper the outlook. Management provided conservative 2026 guidance reflecting macro uncertainty, memory supply/price risks and a residual partner-program tail, while highlighting ample liquidity, share repurchase plans and investment in AI, data and security capabilities.Q4-2025 Updates
Positive Updates
Record Profitability and Margins
Delivered record adjusted earnings from operations of $504 million (6.1% margin) and record total gross margin (full year) of 21.4%; Q4 gross margin expanded to 23.4% (+220 bps).
Adjusted EPS and EBITDA Growth
Adjusted diluted EPS of $2.96 in Q4, up 11%; full year adjusted diluted EPS $9.87 (up 2% year-over-year). Q4 adjusted EBITDA $156 million, up 11% with margin expansion of 80 bps to 7.6%; full year adjusted EBITDA margin expanded 40 bps to 6.6%.
Strong Gross Profit and Segment Performance
Total gross profit grew 9% in Q4. Cloud gross profit up 11% in Q4 ($138 million) and cloud full-year gross profit $495 million. Insight Core Services gross profit grew 16% in Q4 ($90 million) and full-year core services gross profit was $320 million with margin over 32%.
Revenue Mix Shift to Services and Cloud
Core services revenue up 7% in Q4 (acquisition-driven plus organic), hardware revenue increased 2% in Q4; mix shift drove margin expansion and improved operating leverage via disciplined expense management (adjusted SG&A managed to support margin gains).
Strategic Acquisitions and Talent
Completed acquisitions (Inspire11, Sekuro) to strengthen capabilities in data, AI and cybersecurity; second consecutive quarter of organic bookings growth in Core Services; over 6,600 technical professionals and >70 issued patents (200+ applications filed) to support IP and services.
Product and Platform Innovation
Launched Prism, an AI platform to help clients prioritize and operationalize AI use cases; first partner to launch Cisco Secure AI Factory with NVIDIA; multiple partner awards from Google, Cisco, HP, HPE, Intel, Databricks and analyst recognitions from Gartner, IDC and Forrester.
Balance Sheet and Liquidity Actions
Generated ~ $300 million cash flow from operations in 2025; increased share repurchase authorization to $299 million and authorized an additional $75 million repurchase beginning Q1; ABL facility limit raised to $2 billion with ~$1.1 billion available.
Guidance Reflects Continued Profitability
2026 guidance expects low single-digit gross profit growth with gross margin ~21%; adjusted diluted EPS excluding stock-based comp $11.00–$11.50 (≈5% growth at midpoint vs. 2025 excl. SBC); cloud gross profit expected to grow in low double digits and core services in high single digits.
Negative Updates
Revenue Declines and Netting Impact
Net revenue was $2.0 billion in Q4, down 1% quarter-over-quarter; full-year net revenue $8.2 billion, down 5%, with netting from on‑prem software migration to cloud muting top-line growth.
On‑Prem Software and Product Weakness
Product revenue declined 4% in Q4; on‑prem software declined 18% in Q4 due to netting as clients shift to cloud-delivered software, contributing to muted revenue trends.
Partner Program Changes and Tail
Previously disclosed partner program changes had an approximate $70 million gross profit headwind in 2025; company expects a financial tail into 2026 (more pronounced in second half) particularly related to Google solution line dynamics.
Macro and Large‑Enterprise Caution
Corporate and large enterprise client spending remains subdued, weighing on growth in core services and hardware; management expects continued cautious spending in 2026 which constrained guidance to low single-digit gross profit growth.
Supply Chain and Memory Price Risk
Memory supply constraints and anticipated memory price increases could drive PC price inflation (~10–25% cited) and potential volume elasticity (unit declines low single digits), creating uncertainty for device and infrastructure demand.
Increased Leverage from Acquisitions and Capital Actions
Total debt increased to ~ $1.4 billion versus ~$900 million a year ago, primarily due to acquisitions, settle of convertible notes/warrants and share repurchases; increased leverage is a balance-sheet consideration.
SG&A and Cost Pressures
Adjusted SG&A increased 7% in Q4 driven by acquisitions and variable costs (primarily in EMEA); while expenses were managed prudently, acquisitions and investments added near-term cost pressure.
Performance Shortfall vs. Early 2025 Expectations
Management acknowledged 2025 fell short of their gross profit growth expectations entering the year despite late-year momentum and margin improvements.
Company Guidance
Insight's 2026 guidance calls for low-single-digit gross profit growth with gross margin of approximately 21%, adjusted diluted EPS of $10.10–$10.60 including stock‑based compensation and $11.00–$11.50 excluding stock‑based compensation (the ex‑SBC midpoint implies ~5% growth vs. 2025 adjusted EPS of $10.75 ex‑SBC), with EPS growth weighted more toward the first half; cash flow from operations of $300M–$400M; interest and other expense of ~$85M; an effective tax rate of 25.5%–26.5%; capital expenditures of $20M–$30M; average share count of ~31M and a planned $75M repurchase program beginning in Q1. Management also expects Core Services gross profit to grow in the high single digits, Cloud gross profit to grow in the low double digits (with a remaining partner‑program tail more into H2), Hardware gross profit to be approximately flat while hardware revenue grows faster than gross profit, and the 2026 adjusted guidance excludes stock‑based compensation and roughly $83M of acquisition‑related intangible amortization while assuming no acquisition‑related costs, severance/restructuring, or material macro or debt changes.Insight Enterprises Financial Statement Overview
Summary
Margins and cash conversion are generally solid for a distributor (gross margin improved to ~21.4% and FCF ~92% of net income in 2025), but the core issue is weakening fundamentals: revenue declined for three straight years (2023–2025) with a sharper drop in 2025, net margin stepped down in 2025, and leverage rose (debt-to-equity ~1.0 in 2025), reducing flexibility if the downturn persists.Income Statement
Profitability remains modest but generally stable for a distributor, with gross margin improving over time (about 15.6% in 2020 to 21.4% in 2025) while operating and EBITDA margins stayed in the mid-single digits. The key concern is growth: revenue has been negative for three straight years (2023–2025), including a sharp drop in 2025, and net margin stepped down in 2025 (~1.9% vs ~2.9–3.1% in 2023–2024), signaling weaker operating leverage and/or pricing/volume pressure.55
Neutral
Balance Sheet
Leverage has increased, with debt-to-equity rising to ~1.0 in 2025 from ~0.61 in 2024, which reduces balance-sheet flexibility. That said, equity remains sizable (~$1.65B in 2025) and returns on equity are still positive (about 9.5% in 2025), though down meaningfully from the mid-teens level seen in 2022–2024—consistent with the recent earnings pressure.60
Neutral
Cash Flow
Cash generation is a relative strength: free cash flow closely tracked earnings in recent years (free cash flow at ~92% of net income in 2025 and ~93% in 2023–2024), suggesting decent earnings quality. However, free cash flow declined in 2025 and the company has shown volatility earlier in the period (notably weaker conversion in 2022), indicating working-capital swings can materially impact cash results.58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.25B | 8.70B | 9.18B | 10.43B | 9.44B |
| Gross Profit | 1.76B | 1.77B | 1.67B | 1.64B | 1.45B |
| EBITDA | 416.99M | 513.15M | 481.45M | 476.52M | 385.85M |
| Net Income | 157.35M | 249.69M | 281.31M | 280.61M | 219.34M |
Balance Sheet | |||||
| Total Assets | 9.09B | 7.45B | 6.29B | 5.11B | 4.69B |
| Cash, Cash Equivalents and Short-Term Investments | 358.02M | 259.23M | 268.73M | 163.64M | 103.84M |
| Total Debt | 1.59B | 1.08B | 1.26B | 1.02B | 752.59M |
| Total Liabilities | 7.44B | 5.68B | 4.55B | 3.47B | 3.18B |
| Stockholders Equity | 1.65B | 1.77B | 1.74B | 1.64B | 1.51B |
Cash Flow | |||||
| Free Cash Flow | 279.31M | 586.06M | 580.28M | 27.17M | 111.63M |
| Operating Cash Flow | 303.83M | 632.85M | 619.53M | 98.11M | 163.71M |
| Investing Cash Flow | -309.80M | -303.28M | -505.20M | -137.84M | -21.07M |
| Financing Cash Flow | 82.29M | -321.27M | -16.71M | 114.01M | -161.38M |
Insight Enterprises Technical Analysis
Negative
81.93
Price Trends
83.61
Negative
90.18
Negative
110.74
Negative
Market Momentum
-0.32
Positive
44.54
Neutral
15.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSIT, the sentiment is Negative. The current price of 81.93 is below the 20-day moving average (MA) of 84.85, below the 50-day MA of 83.61, and below the 200-day MA of 110.74, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 15.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSIT.
Insight Enterprises Risk Analysis
Insight Enterprises disclosed 24 risk factors in its most recent earnings report. Insight Enterprises reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Insight Enterprises Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.52B | 18.41 | 9.30% | 1.02% | 3.19% | -4.91% | |
71 Outperform | $5.48B | 27.41 | 4.71% | 2.77% | -2.30% | -29.75% | |
71 Outperform | $12.68B | 15.80 | 9.95% | 1.15% | 6.95% | 19.19% | |
67 Neutral | $777.38M | 11.34 | 8.16% | ― | -4.88% | 2.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $8.02B | 14.10 | 7.70% | ― | 3.16% | 1.09% | |
59 Neutral | $2.57B | 16.50 | 9.20% | ― | -6.69% | -51.74% |
* Technology Sector Average
NSIT
Insight Enterprises
81.93
-74.19
-47.52%
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154.30
44.41
40.41%
AVT
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34.06%
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60.81
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SCSC
ScanSource
36.87
0.23
0.63%
SNX
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158.22
20.41
14.81%
Insight Enterprises Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Insight Enterprises Expands Credit Facility and Extends Maturity
Positive
Dec 19, 2025
On December 19, 2025, Insight Enterprises, Inc. amended its asset-based lending credit agreement by entering into a sixth amendment with JPMorgan Chase Bank and a syndicate of lenders, increasing its senior revolving credit facility from the U.S. dollar equivalent of $1.8 billion to $2.0 billion, with $1.65 billion available to U.S. borrowers and $350 million available in multiple currencies to non-U.S. borrowers. The amendment also extended the facility’s maturity from July 22, 2027 to December 19, 2030 and expanded Insight’s flexibility around the sale of receivables, moves that bolster the company’s liquidity, lengthen its funding runway and enhance its financial flexibility to support ongoing operations and international growth.
The most recent analyst rating on (NSIT) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Insight Enterprises stock, see the NSIT Stock Forecast page.
Stock Buyback
Insight Enterprises Announces New $299 Million Share Buyback
Positive
Dec 19, 2025
On December 17, 2025, Insight Enterprises, Inc.’s board of directors approved a stock repurchase program authorizing the company to buy back up to approximately $299 million of its common stock, which includes about $149 million carried over from prior repurchase authorizations. The move signals management’s confidence in the company’s value and financial position and may enhance shareholder returns by reducing the number of shares outstanding.
The most recent analyst rating on (NSIT) stock is a Sell with a $90.00 price target. To see the full list of analyst forecasts on Insight Enterprises stock, see the NSIT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.