Ingram Micro’s second quarter saw revenue rise year-over-year, driven by strong performance in client and endpoint solutions, advanced solutions, and continued growth in cloud services. Management highlighted that enterprise customer demand outpaced small and medium business (SMB) growth, with particularly robust momentum in North America and Asia Pacific. CEO Paul Bay pointed to increased operational efficiency and the impact of the Xvantage platform as key factors, while noting a competitive pricing environment and mix shifts toward lower-margin sales put pressure on profitability.
Is now the time to buy INGM? Find out in our full research report (it’s free).
Ingram Micro (INGM) Q2 CY2025 Highlights:
- Revenue: $12.79 billion vs analyst estimates of $12.02 billion (10.9% year-on-year growth, 6.4% beat)
- EPS (GAAP): $0.16 vs analyst expectations of $0.40 (59.8% miss)
- Adjusted EBITDA: $293.9 million vs analyst estimates of $296.7 million (2.3% margin, 0.9% miss)
- Revenue Guidance for Q3 CY2025 is $12.13 billion at the midpoint, below analyst estimates of $12.26 billion
- Operating Margin: 1.1%, in line with the same quarter last year
- Market Capitalization: $4.49 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Ingram Micro’s Q2 Earnings Call
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Michael Ng (Goldman Sachs): Asked about Q3 growth expectations in endpoint and advanced solutions. CFO Mike Zilis explained that guidance reflects tempered growth in client devices, with strength in desktop and notebook refreshes but less momentum forecast for smartphones.
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Joseph Lima Cardoso (JPMorgan): Inquired about possible demand pull-forward in North America. CEO Paul Bay confirmed no significant evidence of pull-forward, noting that growth was driven by ongoing refresh cycles rather than early purchases.
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Erik Woodring (Morgan Stanley): Sought clarity on end-market cycles for major products. Bay described the company as mid-cycle for servers, storage, and networking, with ongoing momentum but variability across product categories.
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Ruplu Bhattacharya (Bank of America): Questioned the impact of competitive pricing and regional mix on margins. Zilis responded that while competition remains elevated, especially in India, overall pricing and margins are stable due to product and customer mix.
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David Paige (RBC Capital Markets): Asked if Xvantage adoption is driving SMB growth and if further portfolio changes are likely. Bay stated Xvantage is contributing to SMB gains, particularly through automation, and noted the company will continue to review its portfolio for strategic fit.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the impact of Xvantage adoption on customer engagement and sales productivity, (2) the pace of margin recovery as advanced solutions and cloud become a larger share of the mix, and (3) the resolution of any lingering effects from the ransomware incident—including system security and client retention. Progress on portfolio optimization and further automation initiatives will also be important signposts.
Ingram Micro currently trades at $19.10, up from $18.84 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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