Insight Enterprises, Inc. (NSIT) | Investment Case

1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on NSIT

Insight Enterprises' recent performance was impacted by decreased consolidated net sales, which dropped 1% year-over-year in Q4 and 5% for the full year. However, the company's gross profit increased 9% year-over-year to $478.4 million, with expanded gross margins. Additionally, Insight Enterprises beat Q4 earnings estimates with $2.96 per share, exceeding the Zacks Consensus Estimate of $2.82 per share. Some institutional investors, such as Principal Financial Group Inc., increased their holdings, acquiring 15,655 shares. A recent rating from The Bottom Fishing Club rates the company a Buy up to $100.

1.c. Company Highlights

Last Price	80.55
Change Percentage	-3.74%
Open	83.15
Previous Close	83.68
Market Cap ( Millions)	2497
Volume	61830.04
Year High	160.68
Year Low	77.1
M A 50	84.46
M A 200	108.71

FCF Yield	11.19%
Dividend Yield	0.00%
ROE	9.79%
Debt / Equity	96.21%
Net Debt / EBIDTA	294.80%
Price To Book	1.51
Price Earnings Ratio	15.86
Price To FCF	8.94
Price To sales	0.3
EV / EBITDA	8.94

2. Insight Enterprises' Q4 2025 Earnings: A Strong Finish to a Challenging Year

Insight Enterprises reported a net revenue of $2 billion for Q4 2025, a decrease of 1% year-over-year, primarily due to a 4% decline in product sales. However, the company's gross profit increased by 9% to $468 million, driven by strong execution in its Cloud business and growth in its Core services business. The gross margin expanded to 23.4%, with Cloud gross profit increasing by 11% and Core services gross profit growing by 16%. Adjusted diluted earnings per share (EPS) were $2.96, beating analyst estimates of $2.82. The company's adjusted EBITDA margin was 7.6%, up 80 basis points year-over-year.

Publication Date: Feb -15

                                    📋 Highlights
                                    Cloud Gross Profit Growth::
                                                Increased 11% YoY, driven by double-digit growth in SaaS and Infrastructure as a Service.
Core Services Expansion::
                                                Gross profit grew 16% YoY, fueled by acquisitions and organic growth, contributing to a 23.4% gross margin.
Adjusted Earnings Momentum::
                                                Adjusted diluted EPS rose 11% to $2.96, with adjusted EBITDA up 11% to $156 million (7.6% margin).
2026 Guidance::
                                                Targets adjusted diluted EPS of $10.10–$11.50 (inclusive of stock-based comp) and cash flow of $300M–$400M.
Cloud Strategic Shift::
                                                Cloud gross profit of $495M in FY2025 (+2% YoY), with expectations of mid-teens growth in Q4 2026 cloud performance.

                                

Segment Performance

The Cloud business was a significant contributor to Insight Enterprises' growth, with gross profit increasing by 11% year-over-year, driven by double-digit growth in SaaS and Infrastructure as a Service. The Core services business also performed well, with gross profit growing by 16% year-over-year, driven by acquisitions and organic growth. The company's hardware revenue increased by 2% year-over-year, while on-prem software revenue declined by 18%.

Guidance and Outlook

Insight Enterprises expects adjusted diluted EPS growth to be more heavily weighted toward the first half of 2026. The company guided for gross profit growth in the low single digits, gross margin of approximately 21%, and adjusted diluted EPS of $10.10 to $10.60. The company's guidance also includes cash flow from operations in the $300 million to $400 million range. As James Morgado, CFO, noted, "We're expecting a low single-digit growth rate for the year."

Valuation and Metrics

With a P/E Ratio of 16.76 and an EV/EBITDA of 9.28, Insight Enterprises' valuation appears reasonable. The company's ROIC is 15.2%, indicating a strong return on invested capital. The Net Debt / EBITDA ratio is 2.95, suggesting a manageable debt burden. The company's Free Cash Flow Yield is 10.59%, which is attractive. Analysts estimate next year's revenue growth at 2.0%, which is slightly higher than the company's guidance.

IT Budgets and AI Adoption

Insight Enterprises is seeing uncertainty in IT budgets, particularly among large enterprises, as they prioritize spending on existing infrastructure requirements and prepare for AI adoption. The company expects commercial IT budgets to moderate slightly in 2026, while public sector budgets are expected to be spiky and dependent on government funding. As Joyce Mullen, CEO, noted, "We're seeing a complex solution that's more than just historical data center solutions. We believe we're at the beginning stages of broader enterprise adoption, especially with the increasing cost of running everything in a public cloud."

3. NewsRoom

Citigroup Inc. Sells 12,414 Shares of Insight Enterprises, Inc. $NSIT

Mar -09

Source: defenseworld.net

Insight to Present at Raymond James 47th Annual Institutional Investors Conference

Feb -24

Source: businesswire.com

ValueAct Holdings Trims Insight Enterprises by $99 Million as Enterprise IT Budgets Tighten

Feb -20

Source: fool.com

Principal Financial Group Inc. Acquires 15,655 Shares of Insight Enterprises, Inc. $NSIT

Feb -10

Source: defenseworld.net

The Bottom Fishing Club: Insight Enterprises - Unloved AI Hardware/Software Buildout Pick

Feb -08

Source: seekingalpha.com

Insight Enterprises (NSIT) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -06

Source: zacks.com

Insight Enterprises, Inc. (NSIT) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

Insight Enterprises (NSIT) Surpasses Q4 Earnings Estimates

Feb -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.83%)

6. Segments

Hardware

Expected Growth: 6.5%

Insight Enterprises' 6.5% growth in Hardware segment is driven by increasing demand for cloud-based infrastructure, digital transformation initiatives, and rising adoption of IoT devices. Additionally, the company's strategic partnerships with leading OEMs, such as HP and Cisco, and its focus on providing customized IT solutions to clients, contribute to its growth momentum.

Software

Expected Growth: 7.5%

Insight Enterprises' software segment growth of 7.5% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Additionally, the company's strategic acquisitions, expanded partnerships, and investments in emerging technologies such as AI and IoT are contributing to its growth momentum.

Services

Expected Growth: 6.8%

Insight Enterprises' 6.8% growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. The company's expertise in IT consulting, hardware and software sales, and managed services resonates with clients seeking to modernize their infrastructure and improve operational efficiency.

7. Detailed Products

Cloud Solutions

Insight Enterprises, Inc. offers cloud solutions that enable businesses to migrate, manage, and optimize their cloud infrastructure, ensuring scalability, flexibility, and cost-effectiveness.

Cybersecurity Solutions

Insight Enterprises, Inc. provides cybersecurity solutions that help businesses protect themselves from cyber threats, ensuring the security and integrity of their data and systems.

Data Center Solutions

Insight Enterprises, Inc. offers data center solutions that help businesses design, build, and manage their data centers, ensuring high availability, scalability, and efficiency.

Digital Innovation Solutions

Insight Enterprises, Inc. provides digital innovation solutions that help businesses innovate and transform their operations, products, and services, ensuring competitiveness and growth.

IT Supply Chain Optimization Solutions

Insight Enterprises, Inc. offers IT supply chain optimization solutions that help businesses optimize their IT supply chain, ensuring cost savings, efficiency, and agility.

Managed Services

Insight Enterprises, Inc. provides managed services that help businesses outsource their IT operations, ensuring cost savings, efficiency, and improved productivity.

Networking Solutions

Insight Enterprises, Inc. offers networking solutions that help businesses design, implement, and manage their network infrastructure, ensuring high availability, scalability, and security.

Professional Services

Insight Enterprises, Inc. provides professional services that help businesses design, implement, and manage their IT solutions, ensuring successful project outcomes.

Software Solutions

Insight Enterprises, Inc. offers software solutions that help businesses optimize their software investments, ensuring cost savings, efficiency, and improved productivity.

Workplace Solutions

Insight Enterprises, Inc. provides workplace solutions that help businesses design, implement, and manage their workplace technology, ensuring productivity, collaboration, and innovation.

8. Insight Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Insight Enterprises, Inc. faces moderate threat from substitutes, as customers have limited alternatives for its IT solutions and services.

Bargaining Power Of Customers

Insight Enterprises, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Insight Enterprises, Inc. relies on a few large suppliers for its IT products and services, giving them moderate bargaining power.

Threat Of New Entrants

The IT industry has high barriers to entry, including significant capital requirements and complex technology infrastructure, making it difficult for new entrants to compete with Insight Enterprises, Inc.

Intensity Of Rivalry

The IT industry is highly competitive, with many established players, leading to intense rivalry among companies like Insight Enterprises, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	40.31%
Debt Cost	9.53%
Equity Weight	59.69%
Equity Cost	11.44%
WACC	10.67%
Leverage	67.54%

11. Quality Control: Insight Enterprises, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

InterDigital

A-Score: 6.6/10

Value: 3.7

Growth: 8.8

Quality: 9.0

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

TD Synnex

A-Score: 5.7/10

Value: 6.1

Growth: 5.6

Quality: 4.4

Yield: 2.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Avnet

A-Score: 5.5/10

Value: 7.3

Growth: 5.4

Quality: 3.2

Yield: 6.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

PC Connection

A-Score: 5.1/10

Value: 5.6

Growth: 5.7

Quality: 6.0

Yield: 2.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

Arrow Electronics

A-Score: 4.8/10

Value: 6.7

Growth: 6.6

Quality: 3.9

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

Insight Enterprises

A-Score: 4.3/10

Value: 7.0

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.42%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.67%

Insight Enterprises, Inc. - US45765U1034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NSIT

1.c. Company Highlights

Less Volatile

Strong Momentum

Average Growth

Earnings Beats

Revenues Beats

Earnings Miss

Revenues Miss

Stable Momentum

Weak Momentum

Average Quality

Medium Volatility

2. Insight Enterprises' Q4 2025 Earnings: A Strong Finish to a Challenging Year

Segment Performance

Guidance and Outlook

Valuation and Metrics

IT Budgets and AI Adoption

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.83%)

6. Segments

Hardware

Expected Growth: 6.5%

Software

Expected Growth: 7.5%

Services

Expected Growth: 6.8%

7. Detailed Products

Cloud Solutions

Cybersecurity Solutions

Data Center Solutions

Digital Innovation Solutions

IT Supply Chain Optimization Solutions

Managed Services

Networking Solutions

Professional Services

Software Solutions

Workplace Solutions

8. Insight Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Insight Enterprises, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

80.67$

Current Price

80.67$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA