IT solutions integrator Insight Enterprises (NASDAQ: NSIT) missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 1.2% year on year to $2.05 billion. Its non-GAAP profit of $2.96 per share was 4.2% above analysts’ consensus estimates.
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Insight Enterprises (NSIT) Q4 CY2025 Highlights:
- Revenue: $2.05 billion vs analyst estimates of $2.09 billion (1.2% year-on-year decline, 2% miss)
- Adjusted EPS: $2.96 vs analyst estimates of $2.84 (4.2% beat)
- Adjusted EBITDA: $156.2 million vs analyst estimates of $144.6 million (7.6% margin, 8% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $11.25 at the midpoint, beating analyst estimates by 7%
- Operating Margin: 4.6%, up from 3.1% in the same quarter last year
- Free Cash Flow Margin: 7.2%, down from 9.7% in the same quarter last year
- Market Capitalization: $2.53 billion
"We are pleased with our fourth quarter results and the momentum in our business after a challenging year," stated Joyce Mullen, President and Chief Executive Officer.
Company Overview
With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ: NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $8.25 billion in revenue over the past 12 months, Insight Enterprises is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. 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. To expand meaningfully, Insight Enterprises likely needs to tweak its prices, innovate with new offerings, or enter new markets.
As you can see below, Insight Enterprises struggled to increase demand as its $8.25 billion of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Insight Enterprises’s recent performance shows its demand remained suppressed as its revenue has declined by 5.2% annually over the last two years. 
This quarter, Insight Enterprises missed Wall Street’s estimates and reported a rather uninspiring 1.2% year-on-year revenue decline, generating $2.05 billion of revenue.
Looking ahead, sell-side analysts expect revenue to grow 1.8% over the next 12 months. While this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector.
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Operating Margin
Insight Enterprises’s operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 4.1% over the last five years. This profitability was lousy for a business services business and caused by its suboptimal cost structure.
Looking at the trend in its profitability, Insight Enterprises’s operating margin might fluctuated slightly but has generally stayed the same over the last five years, meaning it will take a fundamental shift in the business model to change.
In Q4, Insight Enterprises generated an operating margin profit margin of 4.6%, up 1.5 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses.
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.
Insight Enterprises’s EPS grew at a solid 9.8% compounded annual growth rate over the last five years, higher than its flat revenue. This tells us management responded to softer demand by adapting its cost structure.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Insight Enterprises, its two-year annual EPS growth of 1.1% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q4, Insight Enterprises reported adjusted EPS of $2.96, up from $2.66 in the same quarter last year. This print beat analysts’ estimates by 4.2%. Over the next 12 months, Wall Street expects Insight Enterprises’s full-year EPS of $9.90 to grow 4.1%.
Key Takeaways from Insight Enterprises’s Q4 Results
We were impressed by how significantly Insight Enterprises blew past analysts’ full-year EPS guidance expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its revenue missed. Overall, this print had some key positives. The stock remained flat at $81.74 immediately after reporting.
Is Insight Enterprises an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
