Insight Enterprises Q3 2026: A 26% Earnings Beat Driven by AI Infrastructure

Insight Enterprises posted adjusted earnings of $3.59 per share in Q3 2026, well ahead of the $2.85 consensus estimate, while revenue of $2.44 billion ran nearly 14% above expectations and grew 21.8% year over year. The company has now topped EPS estimates in six of the past eight quarters, and this was the widest margin of outperformance in that stretch by a considerable distance.

The engine behind the quarter was hardware. Hardware product net sales rose 32% and infrastructure hardware gross profit grew more than 50%, reflecting Insight's growing role as a solutions integrator for enterprise AI buildouts. Cloud gross profit reached approximately $164 million, up 26%, and adjusted EBITDA climbed 22% to $177.38 million. CEO Jack Azagury credited broad-based momentum, noting that adjusted diluted earnings per share increased 34% and adjusted earnings from operations grew 23%.

A $38.59 million earnout liability revaluation and $25.66 million in severance and restructuring charges drove GAAP operating income down 26% and net income down more than 56% year over year. The effective tax rate hit 49.9% in the quarter. Investors focused on the operating line will find a healthier picture than the headline GAAP numbers suggest, but the GAAP volatility is a recurring risk worth tracking.

Management responded to the underlying strength by raising its full-year 2026 adjusted diluted EPS outlook to a range of $13.55 to $13.75. The midpoint of that range implies roughly 27% growth over 2025's adjusted diluted EPS of $10.75, and the company now expects full-year gross profit growth of 12.5% to 14%, with gross margin of approximately 21.5%. The guidance assumes no major changes to the macroeconomic environment, including tariffs.

Geographically, North America led in absolute terms with $1.98 billion in revenue, up 22%, while APAC nearly doubled to $120 million, helped by acquisitions completed in Q4 2025. EMEA grew a more modest 6% to $338 million. The APAC surge and an announced push into the Middle East suggest Insight is actively diversifying its revenue base beyond its traditional North American core. Software product net sales fell 3%, a pocket of weakness in an otherwise strong report worth monitoring in coming quarters.