Business Context and Reporting Period
Company: Ingram Micro Holding Corp (INGM)
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Thirteen and Twenty-Six weeks ended June 27, 2026
Business Overview: Ingram Micro is a global distributor of information technology (IT) products, cloud, and other services. Operations are organized into four geographic segments: North America, EMEA, Asia-Pacific, and Latin America. The company focuses on Client and Endpoint Solutions, Advanced Solutions (including AI/GPU infrastructure), and Cloud-based Solutions.
Key Financial Metrics
| Metric (in thousands) | 13 Weeks Ended June 27, 2026 |
26 Weeks Ended June 27, 2026 |
13 Weeks Ended June 28, 2025 |
26 Weeks Ended June 28, 2025 |
|---|---|---|---|---|
| Net Sales | $14,531,069 | $28,494,050 | $12,793,956 | $25,074,799 |
| Gross Profit | $958,679 | $1,884,695 | $839,159 | $1,667,921 |
| Gross Margin % | 6.60% | 6.61% | 6.56% | 6.65% |
| Income from Operations | $235,970 | $458,885 | $142,816 | $343,680 |
| Operating Margin % | 1.62% | 1.61% | 1.12% | 1.37% |
| Net Income | $110,866 | $209,736 | $37,826 | $107,015 |
| Diluted EPS | $0.48 | $0.90 | $0.16 | $0.46 |
| Cash & Equivalents | $808,973 | (Balance Sheet Item) | ||
| Total Debt (Current + Long-term) | $3,795,429 | (Balance Sheet Item) |
Note: Cash and Debt figures represent the balance as of June 27, 2026.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 13.6% year-over-year for both the 13-week and 26-week periods. Growth was driven by all geographic segments, with Asia-Pacific (+27.1% QoQ) and Latin America (+27.0% QoQ) showing the strongest performance.
- Product Mix Shift: Cloud-based Solutions sales increased significantly (47% in Q2, 38% YTD), while Advanced Solutions grew 14% (Q2) and 16% (YTD). This growth was partially offset by a decline in "Other" services due to the divestiture of CloudBlue in Q3 2025.
- Profitability: Operating income increased 65% (Q2) and 34% (YTD). Margins improved primarily due to the absence of prior-year write-downs related to held-for-sale assets (CloudBlue and non-core North America operations) and improved SG&A leverage.
- Cash Flow: Operating cash flow turned negative, using $1.51 billion for the 26-week period compared to $498 million in the prior year. This was driven by a strategic increase in inventory levels ($1.1 billion increase) to mitigate supply constraints and rising average selling prices.
- Restructuring: The company incurred $8.3 million in restructuring costs for the quarter and $17.8 million YTD, primarily related to headcount reductions and facility consolidations in EMEA and North America.
Guidance, Outlook, Risks, and Unusual Items
- Capital Allocation: The Board approved an increase in the stock repurchase program to $175 million. The company repurchased $105 million of stock YTD. A quarterly dividend of $0.086 per share was declared in July 2026.
- Unusual Items:
- Ransomware Incident: Corporate costs included approximately $3.2 million related to external services and expenses from a July 2025 ransomware incident.
- Project Write-off: Corporate costs included $13.8 million related to the write-off of assets following the discontinuation of a project.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of June 27, 2026, due to a material weakness regarding segregation of duties for manual journal entries. A remediation plan is underway.
- Risks: Key risks include foreign currency fluctuations, geopolitical conflicts (Middle East), supply chain constraints, and the company's status as a "controlled company" by Platinum Equity, LLC.
Investor Verification Checklist
- Inventory Levels: Verify the rationale and risk associated with the $1.1 billion increase in inventory and its impact on future cash flow and potential obsolescence.
- Internal Control Remediation: Monitor the progress of the remediation plan for the material weakness in internal controls over financial reporting.
- CloudBlue Divestiture Impact: Assess the long-term revenue impact of the CloudBlue sale on the Cloud-based Solutions segment growth trajectory.
- Debt Structure: Review the maturity profile of the $3.8 billion total debt, specifically the refinancing of the European ABS Facility extended to 2031.
- Legal Contingencies: Review the status of the French Competition Authority fine (finalized at €19.5M) and the follow-on civil claim, as well as the ongoing tax assessments in Brazil.