Ingram Micro posts record $15.22 billion quarter as AI demand surges
The IT distributor beat Wall Street's profit forecast and raised its full-year outlook, but investors barely reacted after the bell.
Ingram Micro, one of the world's largest technology distributors, reported record third-quarter 2026 sales of $15.22 billion, up 20.8% from a year earlier, and beat Wall Street's profit expectations. Non-GAAP earnings came in at $0.91 a share against a forecast of $0.85, a surprise of about 7.1%. The company also raised its full-year guidance.
The main driver was artificial intelligence. Revenue from GPU and AI infrastructure rose to more than $1.8 billion, up from roughly $700 million in the same quarter last year. Put simply, companies are buying the hardware that powers AI, and Ingram Micro sits in the middle of those orders, moving products from manufacturers to resellers and businesses.
Other parts of the business grew fast too. Advanced solutions revenue climbed 40%, cloud revenue rose 30% on an FX-neutral basis, and lifecycle services grew 35%. Management said growth was spread across North America, Asia Pacific, Latin America and EMEA, rather than coming from a single market.
The cash picture improved sharply. Adjusted free cash flow was a $250 million inflow, compared with a $110 million outflow a year earlier. Adjusted operating income rose 25% to $322 million, and adjusted EBITDA reached $390 million, up from $342 million. Net working capital efficiency improved to 27 days from 32 days.
There was one soft spot. Gross margin slipped 35 basis points to 6.55%, because big GPU deals carry thinner margins. Strip those out, and margin was 7.06%, down just 4 basis points. Gross profit still rose 14.6% to $997 million.
Investors responded calmly. The stock closed the regular session at $28.61, up 0.74%, and was flat in after-hours trading. InvestingPro's analysis suggests the shares look undervalued, which may explain the muted reaction to a strong report. Management also described the company as shifting from traditional distribution toward an "intelligent operating system" for business technology commerce.
Why it matters: Ingram Micro's results offer a view of AI spending beyond chipmakers and cloud giants, showing the demand reaching the supply chain that serves businesses worldwide. Source: Investing.com.
