Ingram Micro Holding Corporation Q4 FY2025 earnings call

The third quarter was strong with revenues above guidance. Team responded quickly to ransomware incident in July. Gaining market share across most regions. X vantage digital platform has growing momentum globally. AI transformation pace accelerated, company has invested in AI ecosystem. XVantage platform and Enable AI program driving business outcomes. IDA contributed hundreds of millions of dollars in incremental revenue, had rapid international adoption. Announced first enterprise-grade AI agent built with X-Vantage AI factory. Longtime customer praised partnership.

Third quarter revenues were $12.6 billion, up 7.2% year over year and above the high end of guidance. Non-GAAP diluted earnings per share was 72 cents at the high end of guidance. Client and endpoint solutions were strong. Advanced solutions were down slightly year over year, but server and storage posted strong double-digit gains. Networking grew modestly. Geographically, Latin America and Asia Pacific regions had robust FX-neutral growth in the low teens year over year, North America growth was more moderate at a bit over 3%, and EMEA grew slightly on an FX-neutral basis. SMB customer category achieved third straight quarter of sequential growth. Cloud growth was seen in most geographies, particularly infrastructure as a service and modern workplace solutions.

Guiding net sales of $14 billion to $14.35 billion for Q4 2025. Gross profit expected to be $935 to $990 million, gross margins roughly 6.8% at midpoint. Non-GAAP diluted EPS expected in range of 85 cents to 95 cents per diluted share.

Actual results may differ materially from forward-looking statements due to risks and uncertainties discussed in earnings release and SEC filings, including impact of ransomware incident but team responded effectively to minimize disruption.

Q: Ruklu Bhattacharya asked about margins, SMB vs large enterprise impact on margins.

A: Mike mentioned guidance implies gross margin around 6.8% midpoint, influenced by SMB strength, advanced solutions timing, cloud growth, geography mix.

Q: Eric Woodren asked about inventory, free cash flow.

A: Mike talked about inventory sequential decline, similar cash flow trend to last Q4 expected.

Q: David Page asked about XVantage benefit areas.

A: Paul said XVantage has phases of taking out friction, demand generation, using data for profitable growth, benefit across board with different uses for enterprise and SMB.

Q: Logan Katzmann asked about customer budget.

A: Mike said not seeing abnormal, Q4 reflects seasonal pop and SMB spending.

Q: Alec Valera asked about catalysts and macro.

A: Paul mentioned services, AI, security as catalysts, and SMB strength being encouraging with macro signs improving