Ingram Micro (INGM -1.82%), a global leader in technology distribution and solutions, reported its financial results on August 6, 2025. The company’s report highlighted strong revenue growth driven by broad-based demand across regions and product lines. Net sales (GAAP) reached $12.8 billion, outpacing the $11,970.47 million analyst consensus (GAAP) and exceeding the top end of management’s $11,765–$12,165 million guidance. Non-GAAP earnings per share came in at $0.61, ahead of the $0.59 non-GAAP estimate and near the high end of the non-GAAP guidance range of $0.53–$0.63. Despite the top-line and earnings outperformance, the quarter saw margin compression and an outflow in free cash flow as the company invested in inventory and receivables. Overall, the quarter marked strong growth for Ingram Micro, though a shift in business mix and accounting write-downs diluted some profitability metrics.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.61 | $0.59 | $0.54 | 13.0% |
| Revenue | $12.8 billion | $12.0 billion | $11.5 billion | 10.9% |
| Gross Profit | $839.2 million | $828.4 million | 1.3% | |
| Adjusted EBITDA | $293.9 million | $278.6 million | 5.5% | |
| Adjusted Free Cash Flow | ($262.8 million) | $427.5 million | ($161.5%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Focus Areas
Ingram Micro distributes technology products and provides supply chain and cloud solutions to businesses worldwide. It operates across North America, EMEA (Europe, Middle East, Africa), Asia-Pacific, and Latin America, serving resellers, vendors, and enterprise clients. The company’s core business is built around a vast product range, including client and endpoint solutions such as notebooks, desktops, and smartphones, as well as advanced solutions like servers, storage hardware, networking equipment, and cybersecurity offerings.
Recently, Ingram Micro has emphasized expanding its cloud marketplace and digital platforms, notably its Xvantage digital experience platform and CloudBlue cloud commerce platform. These systems are central to its technology distribution strategy, enabling partners to access a broad suite of cloud-based products and services. Success for Ingram Micro depends on global reach, supply chain efficiency, strong vendor relationships, and continuous innovation through digital transformation.
Quarter Highlights and Key Developments
Net sales (GAAP) rose 10.9% year-over-year, exceeding both management’s forecast and analyst consensus by a wide margin. This growth was broad-based across all geographic segments, as the CEO stated: Net sales growth in all four geographic regions and across our three primary lines of business. North America and Asia-Pacific delivered headline growth, with North America net sales were up 13.7% and Asia-Pacific net sales were up 16.2% year-over-year. EMEA net sales grew 4.8%, and Latin America posted a smaller gain at 0.8% in net sales.
On the product side, client and endpoint solutions saw robust demand, particularly for notebooks, desktops, and smartphones -- reflecting strong refresh cycles in these categories. Momentum in advanced solutions was noted, with growth in server and storage products in North America and specialty and server net sales in EMEA, though some regions saw declines in advanced solutions. Within networking, management cited a return to growth in Q1 FY2025 after several weaker quarters. Cloud-based offerings, while a small portion of gross sales, contributed about 15% of the company’s gross profit in Q1 FY2025, and management highlighted continued healthy cloud growth.
Despite the strong sales result, gross margin (GAAP) narrowed to 6.56%, down from 7.18% in Q2 FY2024. This margin pressure reflected a greater share of sales from lower-margin business, including endpoint devices and large enterprise customers, particularly in the lower-cost, lower-margin Asia-Pacific region. On top of mix changes, Ingram Micro recorded $43.2 million in write-downs related to the planned divestiture of two non-core business units, including its CloudBlue platform. These write-downs affected both cost of sales and operating expenses, contributing to a year over year decline in operating profit margins in North America and Asia-Pacific.
Operating cash flow (GAAP) turned negative, with a $298.0 million outflow compared to a positive inflow the prior year. Adjusted free cash flow was also negative at $262.8 million. Management attributed these declines to higher investments in inventory and accounts receivable to capture demand and pricing opportunities. Inventory rose significantly compared to last year, increasing to $5,509.7 million from $4,699.5 million in Q2 FY2024 (GAAP). Net debt to adjusted EBITDA declined to 2.0x in Q1 FY2025 following continued debt repayment, improving the company’s balance sheet leverage.
Product Families and Business Operations
Client and endpoint solutions, which include mobile phones, desktop and notebook computers, performed especially well, notably in North America and Asia-Pacific. Management credited a surge in refresh cycles and mobility distribution as key drivers. Advanced solutions, such as servers and storage products, saw growth in North America and EMEA, while net sales declined in Asia-Pacific and Latin America, with networking revenue turned positive after several quarters of declines.
Cloud solutions, powered by Ingram Micro’s Cloud Marketplace, allow partners to purchase and manage cloud-based business applications, security tools, and infrastructure services. The company also operates the Xvantage digital platform, a hub that connects vendors, resellers, and customers globally. Xvantage leverages artificial intelligence and data analytics to streamline ordering and service.
The company’s financial solutions business, supporting its partners through flexible channel financing offerings, has more than doubled supported revenue over the past four years. This model frees up working capital by tapping outside financial partners rather than burdening the company’s balance sheet.
Two divestitures, including the CloudBlue cloud commerce asset, are set to close in Q3 FY2025. These moves triggered asset write-downs in the period but are intended to focus resources on areas with stronger long-term potential. No ransomware impact was reported for this quarter, despite a cyber event earlier in the year.
Looking Ahead: Guidance and Trends
The company guided for net sales of $11,875–$12,375 million for Q3 FY2025, representing modest sequential contraction but Gross profit is projected at $815–$875 million for Q3 FY2025, and management expects non-GAAP diluted earnings per share between $0.61 and $0.73 for Q3 FY2025. The guidance incorporates assumptions of ongoing margin pressure due to business mix and working capital investment, as well as a 30% non-GAAP tax rate for Q3 FY2025 and about 235.5 million diluted shares outstanding for Q3 FY2025 guidance.
Management reiterated its focus on expanding core business lines, digital platforms, and global reach. Investors should monitor gross margin trends, cash flow patterns, and the impact of divestitures in the coming quarters. Cloud remains strategically important, but the sale of CloudBlue may shift the strategic mix. Leadership slightly raised the quarterly dividend by 2.6% to $0.078 per share, payable in September 2025.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
