Ingram Micro Holding Corporation

a return, as well as our expectations for future fiscal periods. Actual results may differ materially from those mentioned in these forward-looking statements because of risks and uncertainties discussed in today's earnings release and in our filings with the SEC. We do not intend to update any forward-looking statements. During this call, we will reference certain non-GAAP financial information. Reconciliations of non-GAAP results to GAAP results are included in our earnings press release and the related form 8K available on the SEC website or on our investor relations website. With that, I'll turn the call over to Paul.

Thank you, Willa. Good afternoon and thank you for joining the call today. We are very pleased with our first quarter performance. Net revenue of $12.3 billion was up 11% year over year on an FX neutral basis. and 4% above the high end of the guidance we provided on our Q4 call. Gross profit of 829 million came in more than 2% above the midpoint of our guidance and non-GAAP EPS of 61 cents was at the high end of our guidance. North America and Asia Pacific both saw double digit net sales growth. AMEA grew 3% and Latin America was essentially flat year over year on an FX neutral basis. As expected, the top-line growth was driven by strength in the client and endpoint solutions, but we also saw solid growth in our advanced solutions and cloud businesses. While the second quarter and back half of 2025 are harder to forecast, given the volatility resulting from the macroeconomic and trade environments, which Mike will discuss, we are optimistic about the future. We believe that Ingram Micro's four and a half decades of experience and global reach in tandem with our investments in our cloud and XVantage platform capabilities, position us to manage this cycle with greater resilience, further competitive differentiation, and positive shareholder return. Just as importantly, we remain deeply committed to supporting our customers, our vendor partners, as they navigate the same challenges. Much of our long-term optimism lies in the evolution towards becoming a platform company. During this time, we have invested over $600 million in cloud, the foundation of our XVantage digital platform, which has been implemented in 20 of the 57 countries we operate in. This will allow us to continue to remove silos and friction across thousands of hardware, software, cloud, and service offerings. XVantage connects our team members, our vendor partners, and our customers through its real-time data mesh, powered by four petabytes of data, 32 million lines of code, and more than 300 AI and machine learning models. This patent-pending technology framework harmonizes disparate data sources into a unified platform, unlocking real-time insights, AI analytics, and rich data visualizations. XVantage is a truly global end-to-end digital platform that connects each player in the ecosystem. removing friction, improving go-to-market efficiencies, and translating data into actionable insights through AI. Importantly, XVantage is not about replacing people. Instead, the platform automates repetitive tasks like billing and order tracking to free up time for our sales teams to move from inbound tactical work to the proactive outbound business-led conversations that bolster customer success. One example of how Ingram Micro is providing go-to-market scale and leverage within our ecosystem is our intelligent digital assistant. We call this IDA. IDA uses machine learning and AI models to proactively prioritize engagement with our customers and are consistently improving and automating our quote-to-order conversions. In Q1, IDA enabled tens of thousands of proactive customer engagements per month on behalf of our top vendor partners, driving hundreds of millions in year-over-year incremental revenue. AIDA is another example of how our real-time data mesh and AI models are helping to evolve our sales approach from high-touch order-taking to insightful, consultative order generation, thus transforming the end-to-end buying experience for our customers. Let me share some data to illustrate what this transformation looks like. In the first quarter alone, our customers used XVantage advanced search over 12 million times to find hardware, software, cloud, and services they needed to build end customer solutions. XVantage also enabled more than triple the self-service orders versus the prior year, allowing customers to quickly and seamlessly place orders directly into the platform. In the first quarter through Xvantage, we also reactivated thousands of dormant customers with average net sales above their prior levels of engagement. Xvantage's AI capabilities, including IDA, contributed in a meaningful way to our revenue. And one standout internal measure of Xvantage's ROI is the improved productivity we're seeing across our go-to-market teams. In the U.S., where Xvantage is most mature and fully embedded, into our go-to-market playbook, we are seeing meaningful gains in both revenue generation and cost leverage, both of which were up double digits per head. Another example of how we help our partners scale is our XVantage Integrations Hub, or what we call XI. It simplifies software integrations by enabling instant access to pre-built applications and more secure modern workflows. XI's customers and vendors quickly deploy integrations with key cloud-based software applications, including large-scale CRM platforms like Salesforce. It also integrates remote monitoring and management and configuration price and quote platforms. During Q1 in the U.S. alone, more than 1,500 customers had 51 million interactions through the Xvantage integration hub. One key customer said, and I quote, XI is modern, intuitive, and incredibly easy to navigate. We were amazed at how quickly we installed an app. What normally takes months, we completed in minutes. The seamless experience and effortless setup makes this a game changer for integrations, end quote. Industry analysts are also taking note of the platform advantages. A research VP at IDC noted, and I quote, Ingram Micro's Xantage platform and new Xantage integrations hub demonstrate the balance required between integrations and interactions to build a digitally enabled organization that prioritizes the customer experience, end quote. All of the technology I have discussed was created to enhance our customers' experience. So I'm glad to report that the platform is also being validated for its innovative architecture and design. In April, Ingram Micro was recognized with three IF Design Awards 2025 in the user experience category for our mobile, email-to-order, and insights and recommendations solutions within xVantage. This is among the most prestigious global design competitions for user experience, recognizing excellence in UX, UI, product design, and innovation. Past winners include the best of breed tech innovators like Google and Meta. We were honored to have such a strong showing there against approximately 11,000 submissions from 66 countries. As we look forward to the remainder of 2025, despite the macro uncertainties, our strategic path remains unchanged with our customers at its core. We are focused on innovation and execution. and we believe we are in a stronger position than ever to realize our strategic vision of becoming a platform company. Our goal of delivering speed, scale, and services paying off in demonstrated efficiencies, top line lift, and the reason for it all, a differentiated customer experience. Together with our customers, our vendor partners, and Ingram Micro team members, we are well positioned to navigate the volatility in the short term While continuing to focus on our long-term roadmap, as we have many times in more than our 45 years as a market leader, our ability to remain nimble and responsive to the needs of our ecosystem has allowed us to perform better than the overall market. We are confident that through the strength of our dedicated Inger Micro team members, our symbiotic relationships in the channel, and the depth of our innovation, we will continue to provide a differentiated customer experience. And with that, I'll turn the call over to Mike. Mike?

Thank you, Paul, and good afternoon, everyone. I want to start by reiterating trade environment. Before I turn to the specifics of our results and guidance, let me touch on some detail as to how we see the tariff environment and its impact. As most of you know, we tap through prices related to tariffs, but in the rest of our ecosystem, we expect that overall demand may be impacted by uncertainty around these policies. Modeling this impact is challenging, but it is worth pointing out that we have successfully operated in an elevated tariff environment leak to some degree for the latter part of the last five years. In the U.S., we are not the important record on a vast majority of products that we purchase, and therefore we get very few tariffs. We continue to monitor and assess pricing behaviors of our vendors while we drive our own dynamic pricing model around them. The pass-through nature of our business still exists even where tariffs are indirectly embedded into pricing our we purchased outside of the US.