Ingram Micro hits $14bn top line mark in Q1

AI infrastructure and cloud demand fuelled the distributor’s performance

US-headquartered distributor Ingram Micro has reported positive results in Q1, driven by double-digit growth across all regions.

Net sales rose 13.7 per cent to $14bn (£10.3bn), up from $12.3bn at the same time the year prior.

Momentum was driven by year-on-year growth across all geographic segments, as well as favourable foreign exchange movements, which had a four per cent positive impact.

In EMEA, revenue reached $3.9bn, a 14.1 per cent increase, fuelled by an upward evolution in client and endpoint solutions as well as advanced and cloud-based solutions, despite a decline in other services.

In North America, the distributor’s largest geography, top line rose 12.7 per cent year-on-year from $4.4bn to $5bn.

The increase was led by advanced solutions, reflecting higher networking and server sales in the US, including strong demand for lower-margin, lower cost-to-serve AI infrastructure products.

Cloud-based solutions earnings in the region also grew 30 per cent, despite a 15 per cent headwind from the Q3 FY25 divestiture of its CloudBlue business.

Momentum was partially offset by declines in client and endpoint solutions and other services.

APAC and LATAM grew 13.5 per cent to $4.1bn and 18.6 per cent to $1bn respectively.

Globally, gross profit reached $926m (Q1 FY25: $828.8m), while adjusted EBITDA climbed 13.9 per cent from $290.8m to $331.2m.

The results exceeded the company’s previous guidance, which projected Q1 FY26 revenue between $12.45bn and $12.8bn and gross profit between $840m and $895m.

“Our first quarter was yet another strong performance with top line growth of 13.7 per cent, on top of double-digit growth the prior year and earnings per share at the high end of our guidance range,” said Paul Bay, CEO of Ingram Micro.

“We have moved from adoption to performance on our Xvantage platform, with AI-led net sales up more than 60 per cent year-on-year in our largest countries.”

The Xvantage platform, which contributed to the firm’s results, was first introduced in 2022.

For Q2, the company forecasts revenue to range between $13.6bn and $14bn, with gross profit between $905m and $950m.

“Going forward, we are managing for operating leverage, profitability and return on investment while continuing to invest in our Xvantage platform and other strategic growth initiatives,” explained Mike Zilis, CFO at Ingram Micro.