Insight Enterprises (NSIT)
NASDAQ:NSIT
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Insight Enterprises
(NASDAQ:NSIT)
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Rating:59Neutral
Price Target:
$72.00
▼(-0.12% Downside)
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
Shift to higher‑margin Cloud and Services
Insight has meaningfully shifted mix toward cloud and services, where cloud and core services posted double‑digit gross profit growth and significantly higher margins than hardware resale. That durable mix shift supports structurally higher gross margins, recurring revenues, and better operating leverage over coming quarters.
Negative Factors
Multi‑year revenue decline
Sustained top‑line contraction reduces operating leverage and raises dependence on margin improvements and acquisitions to sustain earnings. Continued revenue decline can pressure long‑term growth prospects, limit reinvestment capacity and make meeting guidance more sensitive to partner and macro shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Shift to higher‑margin Cloud and Services
Insight has meaningfully shifted mix toward cloud and services, where cloud and core services posted double‑digit gross profit growth and significantly higher margins than hardware resale. That durable mix shift supports structurally higher gross margins, recurring revenues, and better operating leverage over coming quarters.
Read all positive factors
Insight Enterprises (NSIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.23B
Dividend YieldN/A
Average Volume (3M)418.77K
Price to Earnings (P/E)16.3
Beta (1Y)1.34
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. Volume423,161
30 Day Avg. Volume418,767
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 Cap1.55
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda8.31
Forecast
1Y Price Target
$105.00Price Target Upside45.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)10.65
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: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.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).
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
55
Neutral
Balance Sheet
60
Neutral
Cash Flow
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
72.09
Price Trends
79.90
Negative
82.19
Negative
102.66
Negative
Market Momentum
-3.91
Negative
43.84
Neutral
66.07
Neutral
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 72.09 is below the 20-day moving average (MA) of 72.44, below the 50-day MA of 79.90, and below the 200-day MA of 102.66, indicating a bearish trend. The MACD of -3.91 indicates Negative momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $16.10B | 9.59 | 11.60% | 1.15% | 6.95% | 19.19% | |
74 Outperform | $1.57B | 17.40 | 9.37% | 1.02% | 3.19% | -4.91% | |
71 Outperform | $5.40B | 16.25 | 4.22% | 2.77% | -2.30% | -29.75% | |
67 Neutral | $819.69M | 12.95 | 8.14% | ― | -4.88% | 2.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $7.92B | 9.99 | 9.05% | ― | 3.16% | 1.09% | |
59 Neutral | $2.23B | 16.31 | 9.79% | ― | -6.69% | -51.74% |
* Technology Sector Average
NSIT
Insight Enterprises
72.09
-62.59
-46.47%
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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.