GET DAILY SIGNALSInsight Enterprises (NSIT) Delivers Strong Q3 with Revenue Up +22% and EPS Growth
Key Takeaways
- Net revenue rose 22% to $2.44 billion for the third quarter ended September 30, 2026, driven by 32% growth in hardware sales.
- Adjusted diluted earnings per share (EPS) increased 34% to $3.59, while GAAP net earnings fell to $0.74 per share on higher severance and restructuring costs.
- Management raised its full-year 2026 outlook, lifting adjusted diluted EPS guidance to a range of $13.55 to $13.75.
- Gross profit grew 20%, with infrastructure hardware gross profit up more than 50% and cloud gross profit up 26%.
- Shares traded higher in pre-market activity following the announcement, according to financial media reports.
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Earnings Context and Why It Matters
Insight Enterprises serves as a global solutions integrator, helping clients modernize technology across hardware, software, cloud, and services. The third-quarter 2026 results come at a key time, with enterprise customers ramping up investments in AI infrastructure while balancing on-premises and cloud needs. The company continues its "One Insight" transformation to speed growth in AI, cybersecurity, and services, while trimming SG&A costs relative to gross profit. Solid demand for servers, storage, and networking, plus market share gains in devices, has supported broad growth. I am watching closely to see if this momentum holds as the company laps prior acquisitions and adjusts to changes in its Google partner program.
Reported Results
Insight Enterprises posted net revenue of $2.44 billion for the third quarter of 2026, marking a 22% rise in both U.S. dollar and constant currency terms. Gross profit climbed 20%, though total gross margin settled at 21.4%, down 30 basis points from mix shifts and softer hardware margins. Hardware revenue advanced 32%, with infrastructure surging more than 50% and devices rising more than 30%. Cloud gross profit increased 26% to $164 million, and core services gross profit grew 21% to $95 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted diluted EPS reached $3.59, up 34% in U.S. dollar terms and ahead of internal expectations. Adjusted EBITDA rose 22% to $177 million. On a GAAP basis, net earnings dropped 57% to $22.16 million, or $0.74 per share, versus $50.95 million, or $1.62 per share, a year ago, mainly due to higher earnout adjustments and severance costs from a voluntary separation program.
Market Reaction and Investor Sentiment
Investors reacted positively to the report. Shares traded about 4.7% higher in pre-market activity after the announcement, following a nearly 5% gain in the prior session on the New York Stock Exchange. The better-than-expected results combined with a second upward revision to full-year guidance helped reinforce confidence in execution and AI-related positioning. Sentiment drew further support from comments on healthy demand, elevated backlog, and plans to finish the remaining share repurchase authorization before year-end.
Forward Outlook and Key Factors to Monitor
Management lifted full-year 2026 guidance, now calling for gross profit growth of 12.5% to 14% and adjusted diluted EPS of $13.55 to $13.75, up from the prior range of $12.20 to $12.70. Gross margin is projected near 21.5%, with operating cash flow still expected between $300 million and $400 million.
Several items deserve attention in coming quarters. The fourth quarter will mark the first primarily organic period in some time, as the company laps acquisitions from late 2025, which could temper growth rates. The impact of Google partner program changes will also become more evident, even as the Microsoft cloud business stays strong. Cost discipline remains central, with the voluntary separation program expected to deliver roughly $30 million in annualized gross savings and a continued focus on lowering the SG&A-to-gross-profit ratio. A virtual Investor and Analyst briefing set for December 2, 2026, should offer more detail on three-year targets and capital allocation, including share repurchases and potential M&A.
Using AI Tools in My Research Process
In my analysis of recent earnings, I turned to Tickeron’s AI Screener to quickly filter comparable companies and spot patterns in the sector. It helped confirm the strength in hardware and cloud metrics without spending hours on manual screens. The tool’s customizable filters for fundamentals, technical signals, and performance make it a practical addition when evaluating results like these and identifying related opportunities.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for NSIT turns positive, indicating new upward trend
NSIT saw its Momentum Indicator move above the 0 level on October 19, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In 58 of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +5.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where NSIT advanced for three days, in 250 of 358 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
The Aroon Indicator entered an Uptrend today. In 172 of 259 cases where NSIT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 66%.
Bearish Trend Analysis
The 10-day RSI Indicator for NSIT moved out of overbought territory on October 27, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In 28 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 36 of 56 cases where NSIT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for NSIT turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 24 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NSIT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
NSIT broke above its upper Bollinger Band on October 12, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 35 (best 1 - 100 worst), indicating steady price growth. NSIT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 61 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 66 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 39, placing this stock slightly worse than average.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.793) is normal, around the industry mean (2.294). P/E Ratio (22.360) is within average values for comparable stocks, (19.526). Projected Growth (PEG Ratio) (0.990) is also within normal values, averaging (1.350). Dividend Yield (0.000) settles around the average of (0.007) among similar stocks. P/S Ratio (0.595) is also within normal values, averaging (0.418).
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Fundamental Analysis Ratings
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General Information
a provider of information technology services and solutions
Industry ElectronicsApplianceStores