IT distribution giant Ingram Micro (NYSE: INGM) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 13.6% year on year to $14.53 billion. Guidance for next quarter’s revenue was optimistic at $13.75 billion at the midpoint, 2.2% above analysts’ estimates. Its GAAP profit of $0.48 per share was 13.6% above analysts’ consensus estimates.

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Company Overview

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $55.98 billion in revenue over the past 12 months, Ingram Micro is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it’s challenging to maintain high growth rates when you’ve already captured a large portion of the addressable market. For Ingram Micro to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.

As you can see below, Ingram Micro struggled to increase demand as its $55.98 billion of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a tough starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Ingram Micro’s annualized revenue growth of 8.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Ingram Micro reported year-on-year revenue growth of 13.6%, and its $14.53 billion of revenue exceeded Wall Street’s estimates by 4.8%. Company management is currently guiding for a 9.1% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and suggests its products and services will see some demand headwinds.

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Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

Ingram Micro’s adjusted operating margin has generally stayed the same over the last 12 months, averaging 1.8% over the last five years. This profitability was inadequate for a business services business and caused by its suboptimal cost structure.

Analyzing the trend in its profitability, Ingram Micro’s adjusted operating margin might have fluctuated slightly but has generally stayed the same over the last five years, which doesn’t help its cause.

In Q2, Ingram Micro generated an adjusted operating margin profit margin of 1.7%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Ingram Micro’s full-year EPS grew at a weak 3.5% compounded annual growth rate over the last four years, worse than the broader business services sector.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

Ingram Micro’s EPS grew at a decent 11.7% compounded annual growth rate over the last two years, higher than its 8.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

In Q2, Ingram Micro reported EPS of $0.48, up from $0.16 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Ingram Micro’s full-year EPS to grow 41.2% from $1.84 to $2.59.

Key Takeaways from Ingram Micro’s Q2 Results

We enjoyed seeing Ingram Micro beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. Investors were likely hoping for more, and shares traded down 1.4% to $30.00 immediately following the results.

Big picture, is Ingram Micro a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).