Ingram Micro’s third quarter was shaped by continued strength in its core client and endpoint solutions, as well as a notable rebound in the small and medium business (SMB) segment. Management highlighted that the company was able to restore operations quickly following a ransomware incident in July, minimizing disruption and supporting growth. CEO Paul Bay pointed to the expanding adoption of the Xvantage digital platform as a key factor: “Enterprise sales remained strong and our SMB customer category achieved a third straight quarter of sequential growth, which is encouraging.” The company’s focus on integrating AI capabilities and expanding its reach in international markets contributed to its performance, although a shift toward lower-margin product categories moderated gross margin gains.
Is now the time to buy INGM? Find out in our full research report (it’s free for active Edge members).
Ingram Micro (INGM) Q3 CY2025 Highlights:
- Revenue: $12.6 billion vs analyst estimates of $12.24 billion (7.2% year-on-year growth, 3% beat)
- EPS (GAAP): $0.42 vs analyst expectations of $0.44 (4.6% miss)
- Adjusted EBITDA: $342.2 million vs analyst estimates of $320.2 million (2.7% margin, 6.9% beat)
- Revenue Guidance for Q4 CY2025 is $14.18 billion at the midpoint, above analyst estimates of $13.68 billion
- Operating Margin: 1.8%, in line with the same quarter last year
- Market Capitalization: $5.21 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Ingram Micro’s Q3 Earnings Call
- Ruplu Bhattacharya (Bank of America) asked about margin trends and the impact of SMB versus enterprise mix. CFO Michael Zilis explained that higher SMB growth is encouraging, but the mix of lower-margin products and large GPU deals will continue to influence operating margins.
- Ruplu Bhattacharya (Bank of America) also questioned inventory and free cash flow expectations. Zilis stated that inventory reductions were progressing as planned and projected a typical Q4 cash flow pattern, with no abnormal working capital build expected.
- Maya Neuman (Morgan Stanley) inquired about the stage of the PC and server refresh cycle. CEO Paul Bay replied that the company is in the later innings of the PC refresh and still seeing good demand, with AI-enabled PCs likely to extend the upgrade cycle into 2026.
- Maya Neuman (Morgan Stanley) asked if rising component costs are influencing customer buying behavior. Bay responded that there is no evidence of pull-forward purchases due to component pricing at this time.
- David Paige Papadogonas (RBC Capital Markets) pressed for details on where Xvantage platform benefits are most evident. Bay explained that SMB customers use Xvantage for end-to-end business management, while enterprise clients leverage it for pricing and partner lookup, with both segments seeing efficiency gains.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will monitor (1) the pace at which AI-enabled product adoption accelerates across customer segments, (2) sustained momentum and growth in the SMB category, and (3) further expansion and measurable impact of the Xvantage and Enable AI platforms. We will also track whether ongoing margin pressures from changing product mix are mitigated by automation and operational efficiency gains.
Ingram Micro currently trades at $22.17, in line with $22.06 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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