Ingram Micro’s year end report card is nice, but how exactly did they build that success in 2025?
Among other things, its investment in automation and AI seems to be paying off. You can see past interviews on the topic with Bill Brandel https://www.e-channelnews.com/interview-with-bill-brandel-at-ingram-micro-one-2025/ and Sanjib Sahoo https://www.e-channelnews.com/interview-with-sanjib-sahoo-at-ingram-micro-one-2025/
If you were to search for Ingram Micro on eChannelNEWS, you will see over a dozen other interviews from all departments and leaders of the company who contributed to its success. You can also check out what some of their partners and vendors had to say. It’s truly a team effort! Their ranking in the recent Reseller Choice Awards also indicated that their Canadian team is also on fire, led by Tyler Coughlan https://www.e-channelnews.com/interview-with-tyler-coighland-and-andy-theophylactou-at-ingram-micro-one-2025/
In the bigger picture, a strong distribution/supply chain is very good news for the entire channel ecosystem. This is also a very good example of how traditional distribution can adapt and thrive in the new era of AI.
Given the current global instability, downturn in SaaS stocks, the acceleration of AI, the anticipated memory shortage, and ongoing global conflicts, the channel urgently requires the increased stability and predictability that industry leaders like Ingram Micro are positioned to provide.
Paul Bay, CEO, stated, “Ingram Micro delivered a strong fourth quarter and full year, and we enter 2026 with confidence. We exceeded the high end of our net sales and EPS guidance and saw growth across all of our regions. Our Xvantage platform continues to build momentum, with the majority of our net sales now flowing through the platform. In an increasingly complex market, Xvantage’s AI‑driven capabilities are improving productivity and enabling richer, higher‑value opportunities for our customers. As we advance to the next phase of Xvantage value creation, and scale our Enable AI program, we are well positioned to drive durable, profitable growth.”
Want just the facts?
Fiscal Fourth Quarter 2025 Highlights:
- Net sales of $14.9 billion, up 11.5% year-over-year.
- Diluted earnings per share (EPS) of $0.51; Non-GAAP diluted EPS of $0.96.
- Cash provided by operations of $1.56 billion and adjusted free cash flow of $1.63 billion, “the highest quarterly level in over a decade.”
- Voluntarily repaid an incremental $200 million of its Term Loan Credit Facility in February 2026.
Fiscal Year 2025 Highlights:
- Net sales of $52.6 billion, an increase of 9.5% versus 2024.
- Net income up 24.1%; Non-GAAP net income up 8.6%.
- Non-GAAP diluted EPS was $2.90.
Fiscal First Quarter 2026 Outlook:
- Net sales of $12.45 billion to $12.80 billion.
- Non-GAAP EPS of $0.67 to $0.75, a year-over-year increase of 10% to 23%.
North America Segment:
- Net sales were $5.1 billion, up from $4.7 billion.
- Income from operations was $50.6 million, down from $115.2 million, “driven by lower gross profit realization, largely due to previously described mix factors, as well as an increase in SG&A expenses.”
- Operating margin declined to 0.99%, “driven primarily by the decline in gross margins resulting from the shift towards lower margin, lower cost-to-serve AI-enablement projects, as well as the increase in SG&A expenses, both described above.”
Mike Zilis, CFO, added, “We continued to execute with discipline in 2025, delivering strong sales growth in Advanced Solutions, Cloud and Client and Endpoint Solutions, coupled with solid operating leverage and sustained efficiency gains from our Xvantage platform. We delivered adjusted free cash flow of $1.6 billion in the quarter – the highest quarterly level in more than a decade. Our team executed well and we continue to optimize, positioning us to capitalize on a curve of upward profitability as we see higher-margin growth opportunities going forward.”
