Insight Enterprises Inc. (NSIT)
NASDAQ:NSIT
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Insight Enterprises
(NASDAQ:NSIT)
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Rating:64Neutral
Price Target:
$96.00
▲(25.61% Upside)
Action:Reiterated
Date:05/15/26
The score is anchored by mixed financial fundamentals: a strong TTM revenue rebound and positive free cash flow, but thin margins, declining cash flow versus last year, and rising leverage. Technicals add support with a strong uptrend and positive momentum. Valuation is moderate (P/E ~17.2) but lacks dividend support, while the earnings call was balanced—strong Q1 profitability and services/cloud momentum offset by cautious guidance, hardware/macro uncertainty, and higher debt.
Positive Factors
Free cash flow generation
Consistent positive free cash flow (~$235M TTM) and high conversion (~91% of net income) indicate durable cash generation despite a working-capital heavy distribution model. This supports debt servicing, buybacks, and reinvestment into higher‑value services over the next several quarters.
Negative Factors
Rising leverage
Leverage has meaningfully increased, reducing financial flexibility and raising interest and covenant sensitivity. Higher debt limits capacity to invest or respond to demand shocks and amplifies downside risk if margins or revenue weaken, making capital allocation and cash generation critical drivers going forward.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistent positive free cash flow (~$235M TTM) and high conversion (~91% of net income) indicate durable cash generation despite a working-capital heavy distribution model. This supports debt servicing, buybacks, and reinvestment into higher‑value services over the next several quarters.
Read all positive factors
Insight Enterprises (NSIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.69B
Dividend YieldN/A
Average Volume (3M)549.90K
Price to Earnings (P/E)17.2
Beta (1Y)1.47
Revenue Growth-1.83%
EPS Growth-2.39%
CountryUS
Employees14,324
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)5.75
Shares Outstanding30,203,917
10 Day Avg. Volume845,668
30 Day Avg. Volume549,901
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 Cap1.50
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit2.21
Enterprise Value/Ebitda8.21
Forecast
1Y Price Target
$93.75Price Target Upside22.66% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)10.66
Revenue Forecast (FY)$8.39B
Insight Enterprises Business Overview & Revenue Model
Company Description
IInsight 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...
How the Company Makes Money
Insight makes money primarily by selling technology products and related services to businesses and government organizations. A major revenue stream comes from reselling third-party hardware (e.g., client devices, servers, storage, and networking ...
Insight Enterprises Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong profitability and execution wins alongside cautious top-line dynamics and operational risks. Q1 delivered robust margin expansion, significant cloud and services growth (Cloud +35%, Core Services +19%), and double-digit profit and EPS growth (+27% adjusted EBITDA, +26% adjusted EPS), which exceeded expectations. However, net revenue growth was modest (+1% USD, -1% constant currency), hardware margin pressure, supply chain/memory uncertainty, higher leverage from acquisitions and buybacks, and conservative full-year guidance (low-single-digit gross profit growth and EPS ~5% at midpoint) temper the outlook. Management emphasized a strategic pivot to AI and the mid-market, a disciplined capital allocation shift toward share repurchases, and a focus on execution and integration of prior acquisitions. Overall, the positives on profitability and strategy are offset by tangible execution and macro-related risks, resulting in a balanced, cautious assessment.Positive Updates
Strong Gross Profit and Margin Expansion
Total gross profit grew 14% year-over-year and gross margin expanded to 21.7% (up 2.4 percentage points), with double-digit gross profit growth across every geography.
Negative Updates
Modest Revenue Growth and Currency Impact
Net revenue was $2.1 billion, up only 1% in U.S. dollars and down 1% in constant currency, indicating limited top-line growth despite strong profit expansion.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Gross Profit and Margin Expansion
Total gross profit grew 14% year-over-year and gross margin expanded to 21.7% (up 2.4 percentage points), with double-digit gross profit growth across every geography.
Read all positive updates
Company Guidance
Insight maintained a cautious 2026 outlook and gave specific numeric guidance: full‑year gross profit growth in the low single digits with gross margin of roughly 21.5%; adjusted diluted EPS (ex‑stock‑based comp) of $11.00–$11.50 (bias to the high end), about 5% growth vs 2025’s $10.75 and with EPS weighted to the first half; cash flow from operations $300–$400M; interest and other expense ≈ $90M; effective tax rate 25.5%–26.5%; capital expenditures $20–$30M; average share count ≈ 30M; acquisition‑related amortization ≈ $83M excluded; assumes no acquisition costs/severance and no debt changes. They expect hardware gross profit ~flat (hardware revenue to grow faster than GP), Core Services GP up high single digits, Cloud GP up low double digits, and SG&A to grow slightly slower than gross profit. Capital allocation: pause M&A, immediately repurchase the remaining $224M authorization (Q1 repurchases were $75M, totaling a planned $299M repurchase for the year), and noted Q1 operating cash flow was $32M, Q1 net revenue $2.1B, Q1 total GP up 14% (Cloud GP $139M, +35%; Core Services GP $86M, +19%), adjusted EBITDA $152M (+27%, 7.1% margin), adjusted Q1 EPS $2.88 (+26%), total debt ≈ $1.5B and available ABL capacity ≈ $1B.Insight Enterprises Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.27B | 8.25B | 8.70B | 9.18B | 10.43B | 9.44B |
| Gross Profit | 1.82B | 1.76B | 1.77B | 1.67B | 1.64B | 1.45B |
| EBITDA | 489.88M | 416.99M | 513.15M | 481.45M | 476.52M | 385.85M |
| Net Income | 179.84M | 157.35M | 249.69M | 281.31M | 280.61M | 219.34M |
Balance Sheet | ||||||
| Total Assets | 10.06B | 9.09B | 7.45B | 6.29B | 5.11B | 4.69B |
| Cash, Cash Equivalents and Short-Term Investments | 440.63M | 358.02M | 259.23M | 268.73M | 163.64M | 103.84M |
| Total Debt | 1.73B | 1.59B | 1.08B | 1.26B | 1.02B | 752.59M |
| Total Liabilities | 8.45B | 7.44B | 5.68B | 4.55B | 3.47B | 3.18B |
| Stockholders Equity | 1.60B | 1.65B | 1.77B | 1.74B | 1.64B | 1.51B |
Cash Flow | ||||||
| Free Cash Flow | 234.78M | 279.31M | 586.06M | 580.28M | 27.17M | 111.63M |
| Operating Cash Flow | 258.16M | 303.83M | 632.85M | 619.53M | 98.11M | 163.71M |
| Investing Cash Flow | -308.67M | -309.80M | -303.28M | -505.20M | -137.84M | -21.07M |
| Financing Cash Flow | 162.05M | 82.29M | -321.27M | -16.71M | 114.01M | -161.38M |
Insight Enterprises Technical Analysis
Positive
76.43
Price Trends
75.16
Positive
79.78
Positive
93.49
Negative
Market Momentum
4.08
Negative
72.60
Negative
93.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSIT, the sentiment is Positive. The current price of 76.43 is below the 20-day moving average (MA) of 78.17, above the 50-day MA of 75.16, and below the 200-day MA of 93.49, indicating a neutral trend. The MACD of 4.08 indicates Negative momentum. The RSI at 72.60 is Negative, neither overbought nor oversold. The STOCH value of 93.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.65B | 7.96 | 11.15% | ― | 20.49% | 92.31% | |
75 Outperform | $18.51B | 9.59 | 11.60% | 1.15% | 10.39% | 50.26% | |
74 Outperform | $1.62B | 21.38 | 9.67% | 1.02% | 0.78% | 3.87% | |
69 Neutral | $855.87M | 11.45 | 8.07% | ― | 3.76% | 18.30% | |
64 Neutral | $2.69B | 17.19 | 11.17% | ― | -1.83% | -2.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $6.89B | 12.98 | 4.33% | 2.77% | 12.68% | -27.94% |
* Technology Sector Average
NSIT
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Insight Enterprises Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Insight Enterprises Shareholders Approve Governance and Charter Changes
Positive
May 14, 2026
Insight Enterprises, Inc. held its Annual Meeting of Stockholders on May 13, 2026, where shareholders voted on director elections, executive compensation, auditor ratification and corporate governance changes. Following prior board approval, inves...
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.