Insight Enterprises, Inc.

Greetings and welcome to Insight Enterprise's first quarter 2026 operating results. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I would now like to turn the conference over to Ryan Miyasako, Director of Investor Relations. Thank you. You may begin.

Thank you, Cara. Welcome, everyone, and thank you for joining the Insight Enterprises Earnings Conference Call. Today, we will be discussing the company's operating results for the quarter ended March 31, 2026. I'm Ryan Miyasato, Investor Relations Director of Insight, and joining me is Jack Azagiri, President and Chief Executive Officer, and James Morgato, Chief Financial Officer. If you do not have a copy of the earnings release or the accompanying slide presentation that was posted this morning and filed with the Securities and Exchange Commission on Form 8K, you will find it on our website at insight.com under the Investor Relations section. Today's call, including the question and answer period, is being webcast live and can also be accessed via the Investor Relations page of our website at insight.com. An RFI copy of the conference call will be available approximately two hours after completion of the call and and will remain on our website for a limited time. This conference call and the associated webcast contain time-sensitive information that is accurate only as of today, May 7, 2026. This call is the property of Insight Enterprises. Any redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of Insight Enterprises is strictly prohibited. In today's conference call, we will be referring to non-GAAP financial measures as we discussed the first quarter financial results. When discussing non-GAAP measures, we will refer to them as adjusted. We will find a reconciliation of these adjusted measures to our actual GAAP results included in both the press release and the accompanying slide presentation issued earlier today. Please note that all growth comparisons we make on the call today relate to the corresponding period of last year unless otherwise noted. Also, unless highlighted as constant currency, All amounts and growth rates discussed are in U.S. dollar terms. As a reminder, all forward-looking statements that are made during this conference call are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are discussed in today's press release and in greater detail in our most recently filed periodic reports and subsequent filings with the SEC. All forward-looking statements are made as of the date of this call and Except, as required by law, we undertake no obligation to update any forward-looking statement made on this call, whether as a result of new information, future events, or otherwise. With that, I will now turn the call over to Jack. Jack?

Thank you, Ryan. Good morning, everyone, and thank you for joining us. I'm honored to be with you today on my first earnings calls as Insight CEO. It is a privilege to step into the role at this important time for our company. The team has built a truly differentiated set of capabilities across hardware, software, and services. I'm excited to continue our transformation to become the leading solution integrator and build upon this strong foundation. Turning to the first quarter, I am pleased to report that we delivered strong financial results which exceeded our expectations, and I want to thank Joyce, the leadership team, and all our teammates for their hard work. In the first quarter, we delivered double-digit gross profit growth across every geography, as well as double-digit adjusted earnings from operations and adjusted diluted earnings per share growth. During the quarter, total gross profit grew 14%, with cloud gross profit increasing 35%, and core services gross profit growing 19%. the two key priority areas of our strategy. Together, these factors drove further gross margin expansion to 21.7%. And coupled with disciplined expense management, we delivered adjusted earnings from operations growth of 27% and adjusted diluted earnings per share growth of 26%. Over the past three and a half weeks, I have spent time with our teams, engaged with clients and partners, and reviewed our operations in detail. These conversations have only reinforced my decision to join Insight, which was driven by three reasons. Firstly, Insight has a strong culture underpinned by the pillars of hunger, heart, and harmony, and a 38-year heritage of serving clients and working with our ecosystem partners. and is driven by a strong entrepreneurial spirit. Secondly, the company has a unique and differentiated set of capabilities across what we resell, design, and deliver. I have been impressed by our deep technical knowledge across our partners' hardware, software, and cloud solutions, and the deep services capabilities that Insight has built over the last decade. My conversations with partners have only reinforced the depth of our partnerships and is reflected in recent Partner of the Year awards from Google Cloud, ServiceNow, HB Services, and CrowdStrike. Thirdly, I was drawn to Insight by the significant opportunity ahead. Our strategy to be the leading solutions integrator with a focus on the mid-market has the potential to deliver significant value to both our clients and our shareholders. These reasons have been further reinforced in my conversations with teammates, with clients who value their relationship with us, and with our ecosystem partners. Before I share my priorities, let me briefly share some details about my background. I spent nearly three decades at Accenture, most recently as head of its global consulting business, where I helped companies around the world drive growth and operational execution to digital and AI transformations. At Insight, I plan to leverage this 30-year background in technology and services to accelerate our strategic pivot to be the leading solution integrator for the age of AI. There are three elements to my priorities. First, we are staying the course on our strategy and accelerating our pivot. Second is focus and execution. And third is capital allocation. Let me start with the first priority in our overall strategy. We're in the early stages of companies deploying AI at scale, realizing the full potential of this technology and realizing the value of their investments. This is particularly true in the mid-market, where investments in AI technology and AI talent is more constrained and the ROI on every dollar invested is critical. This is our sweet spot and an area where our value proposition resonates more clearly. Our strategy is to help mid-market companies make sense of the complex, fragmented, and rapidly evolving technology landscape, integrate their hardware, software, and their cloud landscape with the right technology services to get from idea to results and outcomes at speed. My conviction has been further validated through numerous discussions with our clients and our partners. My plan is to accelerate our pivot to be the leading solution integrator for the age of AI with a core focus on the big market. This is also reinforced through our recent client successes, which illustrates our positioning and reflects our deep technical and AI capabilities. Let me share a couple of stories. We've been an important technology partner for a U.S. manufacturer of premium appliances for almost a decade. We resold Microsoft licensing, pulled their data together in a snowflake data lake, and stood up a dedicated AI factory to build them a real-time predictive AI model to catch product issues before they became warranty claims. The client is realizing roughly a million dollars a year in employee time, tens of millions in avoided claims, and a five-fold increase in warranty processing speed. And in financial services, Texas Credit Union, a 70-year-old financial cooperative serving all 254 counties of Texas. We resold Microsoft licensing, migrated their data centers to Azure, deployed Microsoft 365 with Copilot, built the security so Copilot respected the complex regulatory rules the credit union has to follow, and they are saving over $250,000 a year. We've had a long-term relationship with this client and have grown from a resale client to delivering the full portfolio of our offerings. These are two of the many examples where our clients trust us for their end-to-end technology and AI needs. Turning to my second priority. While we have a sound strategy, we need focus and execution to drive greater consistency, accountability, and operational excellence across the organization. This is going to be a top priority will include accelerating and better executing the integration of the acquisitions we have made over the past several years, investing in the solutions and offerings we provide our clients, leveraging AI to drive operational efficiency and effectiveness and growth, and further leveraging our offshore talent. These efforts will be focused on driving organic growth, creating operating leverage, and unlocking capital that we can redeploy to drive growth, and shareholder value. To accelerate this execution focus, in addition to my role as CEO, I'm also directly overseeing the North America business in the near term. This will allow me to develop a deeper, first-hand understanding of the operational dynamics of our largest region, stay closer to customers and frontline teams, and ensure tight alignment between strategy and execution. My third priority is to redefine our capital allocation priorities. We will pause M&A activity for at least the remainder of 2026. As I mentioned, our focus will be on strengthening our organic business and more closely integrating and leveraging the great acquisitions we have made. Our capital allocation priority will be to execute the remaining $224 million share repurchase authorization this year. At its current levels, we believe Insight stock presents significant value and is the best use of our capital. This will take our total share repurchases for the year to $299 million. In short, I love our hand at Insight. We had a solid start to the year, We have a meaningful opportunity ahead as we focus on execution, and I look to build on our first quarter performance. We will share more on our execution plan next quarter. As we look ahead to 2026, we are pleased with a strong start to the year and maintain a cautiously optimistic outlook. Given the ongoing complexity of the environment, including geopolitical risk and supply chain challenges, and the fact that I'm three and a half weeks in, we believe a prudent approach is warranted, and we are holding the 2026 guidance set last quarter. With that, I'll turn the call over to James. James?