Insight Q3 revenues hit by ‘macro headwinds’

While CEO Joyce Mullen shared further updates on her retirement

Insight Enterprises reported a revenue decline in its third quarter financial results due to an underperformance in services and hardware.

Revenue decreased four per cent to $2bn (£1.52bn) for the quarter ended September 30, 2025, compared with $2.09bn in the same period last year.

The number nine ranked top VAR blamed a six per cent contraction in product revenue and a 19 per cent slump in on-prem software due to partner consolidation last year.

Hardware grew by a meagre one per cent. Whilst this represents its third consecutive quarter of growth, it fell “below expectations” due to muted large enterprise client demand.

Services were also shy for Insight – which is now shifting its identity to an AI-first solutions integrator - producing only a three per cent climb.

Insight’s results have now declined for the third consecutive quarter, following a 12 per cent drop to $2.1bn in Q1 and a three per cent dip in Q2.

EMEA performance

The global IT reseller’s EMEA earnings rose two per cent year-on-year to $319.76m, driven by a 30 per cent surge in services, which reached $82m.

The services unit helped offset a drop in product revenue, which fell five per cent to $237.75m.

Within product revenue, hardware declined 11 per cent, while software grew two per cent.

Weakness in NORAM

These gains in Europe weren’t enough to counter the NASDAQ-listed outfit’s weak performance in North America, where revenue fell five per cent to $1.62bn, compared with $1.71bn the year before.

Product revenue in the region decreased six per cent year-on-year to $1.31bn.

The decline was led by software, which dropped 26 per cent, while hardware saw a modest two per cent uptick.

Services revenue in North America also slipped three per cent year-on-year to $317.25m.

Revenue in APAC remained flat at $58.78m, versus $58.7m a year ago.

What is to blame?

The company attributed its weaker performance to macro headwinds, evolving client needs, and significant programme changes.

During its Q3 2025 earnings call, CEO Joyce Mullen said services and hardware fell short of expectations, partially offset by stronger results in cloud.

The software segment was reportedly negatively impacted by a 19 per cent decline in on-prem software, following partner consolidation last year that shifted gross product revenue to net agency services.

“As we look to 2026, we are positioned very well to take advantage of the changing landscape and are proud of the underlying strength and profitability of this business,” said Mullen.

“This gives us a clear runway to demonstrate the power of our business model portfolio of solutions and our expertise. Our future is bright.”

Update on Insight CEO

Mullen also confirmed plans for her upcoming retirement.

“We began the process of preparing for an orderly transition in earnest earlier this year when we engaged a search firm.

“Our next step is to begin a public external search for my successor given the AI opportunity in front of us, and the transformation required.

“I will ensure a smooth transition and then will continue on as an adviser to the new CEO.”