Insight Enterprises, Inc.

Hello everyone, thank you for joining us and welcome to the Insight Enterprises second quarter 2026 operating results. After today's prepared remarks, we will host a question and answer session. If you would like to ask the question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Ryan Miasato with Investor Relations. Ryan, please go ahead.

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 June 30th, 2026. I'm Ryan Miyasato, Investor Relations Director of Insight, and joining me is Jack Azzeguri, President and Chief Executive Officer, and James Morgado, Chief Financial Officer. If you do not have a copy of the earnings release or the accompanying slide presentation Thank you for joining us. contain time-sensitive information that is accurate only as of today, August 6, 2026. This call is a 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 discuss the second quarter financial results. When discussing non-GAAP measures, we will refer to them as adjusted. You will find that 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 pleased to report another strong quarter for Insight. Building on the momentum we established in the first quarter, we delivered broad-based growth across our business and generated strong operating leverage. As a result, total gross profit grew 18%, while adjusted earnings from operations increased 31%, and adjusted diluted earnings per share rose 44%. I'm especially proud of the performance in our key priority areas. Infrastructure hardware revenue rose more than 20%, reflecting strong demand across servers, storage, and networking, as clients modernize their environments and invest in AI-ready infrastructure. From a gross profit perspective, cloud grew 39%, and core services increased 21%. These offerings are closely aligned with our clients' priorities and represent areas where we see significant opportunity to drive sustained growth. These results reinforce two important points. First, our strategy to be a solution integrator for the age of AI is resonating with our clients. And second, we are making early progress against the priorities I have learned last quarter, in particular, the need for focus and execution discipline in everything we do. As James will detail in his remarks, We are raising our outlook for both growth profit growth and adjusted diluted earnings per share for the year as a result of this strong momentum. Over the past several months, I've continued spending time with our clients, our teammates, and our partners around the world while conducting a comprehensive review of our business and building our three-year business plan. Those conversations, combined with a deeper understanding of our operations and market position, have only strengthened my conviction in the opportunity ahead of us. Our pivot to become the leading solution integrator for the age of AI is working. While there are opportunities to optimize how we operate and continue to build our capabilities, we have a strong foundation to build upon, and we are in a strong position to unlock the value from the investments we have made over the last 10 years. Let me start with what's working well. Our client relationships remain one of our greatest strengths. Many of these relationships have been built over years, and in some cases, decades, creating a foundation of trust that enables us to engage at a more strategic level with our clients. This is especially true with our mid-market clients who are turning to Insight to help them deploy and adopt AI in a practical way with a focus on rapid results. A measure of the trust we've earned with our clients is our Net Promoter Score. which has consistently exceeded 60 over the past three years. Second, our cloud business continues to perform well. Organizations remain focused on modernizing their environments, optimizing cloud investment and consumption, and driving value from AI. Our strong cloud performance, especially with Microsoft and Google, reflects both the relevance of these priorities and the value our teams bring in helping clients accelerate Digital Transformation Journeys. Third, we are seeing encouraging strong growth in infrastructure and AI-related hardware. This growth is being driven by stronger sales execution, close alignment with client priorities, and our ability to help clients navigate supply chain constraints while accelerating investment in modernization and AI-ready infrastructure. Fourth, our partner ecosystem. remains a significant competitive advantage. The strength of our relationships with the world's leading technology providers continues to create opportunities for growth and innovation. As an example, we are a global launch partner for Microsoft 365 E7, Microsoft's frontier suite. As an early enterprise adopter, we're gaining first-hand experience that helps clients accelerate their own journey to human-led agent-operated enterprise. We bring the full Microsoft AI stack from co-pilot to Agent 365 with security and governance built in, which is especially valuable for mid-market clients seeking enterprise-grade AI capabilities. The strength of our partner ecosystem is reflected in recognitions we continue to receive across the industry. Recently, we earned Partner of the Year awards from HPE, Everpure, Adobe, CrowdStrike, Foodpoint, and Rubrik, an endorsement of our technical expertise and leadership in cybersecurity and other strategic growth areas. And we were named a major contender in the Everest Google Cloud Services Peak Matrix Assessment, recognizing our expertise in the Google Cloud platform. Finally, our people and culture continue to be a major differentiator, bringing deep technical expertise across our solutions. I have been consistently impressed not only by the depth of our expertise, commitment, and passion across our organization, but also by the strength of our culture, grounded in collaboration, accountability, and shared commitment to our clients. We refer to it as hunger, heart, and harmony. As an example, that illustrates many of these strengths is our partnership with a healthcare consulting provider that conducts hundreds of hospital surveys each year. These consultants were spending significant time manually documenting findings and producing accreditation reports. We built an AI-powered solution using OpenAI that transforms survey notes into structured findings and recommendations that fit seamlessly into existing workflows. As a result, the client is realizing more than $400,000 in annual productivity savings, reducing report preparation time from several hours to less than an hour. They're also saving more than 20 hours per week in formatting and quality assurance work, and improving consistency across hundreds of reports each year. This example demonstrates how we're helping clients move from AI ambition to realized business values. The differentiator is not access to AI technology itself, but the ability to apply it to real-world business challenges, transform processes, and deliver measurable returns. As clients increasingly prioritize outcome-based AI investments, our expertise, delivery capabilities, and talent position us well to capture this growing opportunity. While we have a strong foundation, we have also identified several areas where we need to improve. First, part of our business remains too decentralized. Some acquisitions and support functions have not yet been fully integrated into a common operating model, creating complexity, sometimes limiting collaboration, and slowing down decision making. We need a more connected and consistent way of working in order to serve our clients at speed as one insight all the time, every time. We have not consistently invested in our organic business in several of our most important growth sectors. We believe there is significant opportunity to accelerate investment in AI infrastructure as well as AI services, including engineering, data, cloud, and security. These are areas where client demand is growing and where we believe Insight is well positioned to win. Furthermore, we need to continue to invest in our frontline sales and equip our account executives with training and AI tools to represent the full capabilities of Insight. Third, we have opportunities to create greater efficiency through AI-enabled processes and automation. As a technology leader, we are leading by example in the adoption of AI to improve productivity, decision quality and speed. Our early adoption of Microsoft's Frontier Suite is a great example of this. To address these areas for improvement, we are launching a three-year business plan which we call the One Insight Plan. The plan is designed to accelerate organic growth, move to a One Insight operating model, and improve our operating leverage in order to further fuel our business for growth. Combined with favorable market trends in cloud, data, AI, and cybersecurity, we believe this strategy will position us to create sustainable long-term values. The plan focuses on three pillars, which I'll expand on shortly. First, accelerating investment behind our highest priority growth vectors, AI infrastructure and AI services, including security with a sharpened focus on the mid-market. Second, driving operational excellence. And third, strengthening our talent strategy. This represents the building blocks of the three-year plan we are currently developing and will be executed over a phased approach. Importantly, this is not simply a future state vision. Work is already underway globally. At the center of everything we do is a simple principle, focus and execution. Let me give you examples of our plan in each of the three key pillars. As we drive operational efficiencies across the business, we will reinvest a portion of those savings into two strategic growth initiatives that are closely aligned with evolving client demand. AI Infrastructure Organizations are transforming their infrastructure to support AI workloads, data-intensive computing, and modern hybrid environments. And AI Services This includes engineering services, data and cloud capabilities, security solutions, and advisory services designed to help clients move from experimentation to enterprise-scale deployment at speed. As we strengthen our investment in these two priority areas, we continue to drive operational excellence and execution in other areas including devices, hardware-attached services, and overall resale capabilities. A good example of our priority investments is the recent launch of Insight Managed Exposure Defense, IMED in short, a managed security offering designed to help organizations address The solution, which we use ourselves as client zero, enables clients to rapidly move from identifying vulnerabilities to strengthening their security posture. In a threat landscape that continues to evolve at unprecedented pace, organizations need a partner that can deliver integrated protection and rapid time to value. We are making these capabilities available in a consumable way as a managed service, making them more accessible to our mid-market clients including a simple 24-hour quoting process to get started at speed. In just a few weeks since launch, we have seen strong client interest. Within our solutions portfolio, similar to what we've done with IMED, we're improving scalability and repeatability by productizing our top 10 service offerings over the next few months. In addition, In order to drive greater solution selling and cross-selling globally, we are also expanding our AI sales coach capabilities, equipping our account executives with client-specific insights, recommended discussion topics, and actionable guidance that improves productivity, selling consistency, and client engagement at scale. We are also selectively adding account executive capacity in key segments. Our second pillar, is driving operating leverage and implementing a One Insight operating model, bringing acquisitions onto common platforms and processes, standardizing how we operate across regions, and breaking down organizational silos. By operating as one global team, we can deliver the full breadth of insights capabilities to clients, deploying AI at scale internally, improve execution, accelerate decision-making, and create greater operating leverage across the business to further fuel our growth. This effort includes globalizing corporate functions, streamlining support operations, reviewing our direct and indirect spend, and embedding AI more deeply into our day-to-day operations. We are also reducing organizational layers and empowering teams to make decisions closer to the customer, improving speed, agility, and accountability. During the quarter, we paused back- and mid-office hiring to prioritize client-facing hiring to drive growth and improve organizational efficiency. We are also strengthening collaboration across our global delivery centers with deeper integration and shared accountability across India, the Philippines, and Eastern Europe. Our goal is to build a mature global delivery organization with a clear emphasis on AI-led transformation, process simplification, and consistent execution. Further, we continue to accelerate our own AI transformation in areas like sales and sales support, finance, HR, marketing, and more. Our objective is simple. Use AI to make insight more productive, more scalable, and more effective, demonstrating our client-zero approach while helping our clients do the same. Our third pillar is our Talent Plan. We are aligning incentives and rewards to compete for AI talent while continuing to expand our deep expertise in data, cloud, and cybersecurity through ongoing investment in advanced training and certifications across Azure, Google Cloud, leading frontier models, and other strategic technology partners. We have launched focused incentives in the second half to further drive and sustain our growth priorities and we are reviewing our performance management process to continually raise the bar on our own performance. Ultimately, this all comes back to focus and execution. Our goal is to create a way of working that better supports our business, our partners and our clients. As we implement One Insight, we will measure success through a combination of growth and execution metrics. Specifically, our ability to accelerate organic growth in our key priority areas, deliver strong operational performance and increase our OPEX leverage over time while continuing to focus on our client and teammate NPS scores. As we look at the remainder of the year, we currently believe our highest return opportunity today is investing in Insight itself. As a result, our priority is to complete the remaining $149 million of our current share repurchase authorization this year and continue to pause M&A activities. The first half of 2026 demonstrates the strength and resilience of our business model. Demand remains healthy across our key markets. Execution continues to improve. Our focus on driving organic growth is gaining traction and our backlog continues to grow. While demand remains strong, we remain mindful of the mixed and evolving macroeconomic environment and are managing the business accordingly. Against this backdrop, and supported by a strong financial first-half performance and confidence in our ability to execute, we are raising our outlook for both gross profit growth and adjusted diluted earnings per share for 2026. James will provide additional details on our updated guidance in a moment. With that, I'll turn the call over to James. James.