Ingram Micro Holding Corporation

Thank you for joining Ingram Micro's third quarter 2025 earnings call. I'll now hand the call over to Willa McManmon, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. I'm here today with Paul Bay, Ingram Micro's CEO, and Mike Zylis, our CFO. Before I turn the call over to Paul, let me remind you that today's discussion contains forward-looking statements within the meaning of the Federal Securities Laws including predictions, estimates, projections, or other statements about future events, statements about our strategy, demand plans, and positioning, growth, cash flow, capital allocation, and stockholder 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.

Good afternoon, and thank you for joining today's call. The third quarter was strong with revenues of $12.6 billion of 7.2% year-over-year and above the high end of our guidance. Non-GAAP diluted earnings per share was 72 cents at the high end of our guidance, despite a small impact from the ransomware incident in July. As I shared last quarter, our team responded quickly and effectively to the incident, restoring operations with minimal business disruption, which is reflected in our results. In terms of market dynamics, We believe we're gaining market share across most regions in the businesses we serve and are encouraged by the growing momentum of our X vantage digital platform as we deploy it globally. Looking forward, we entered the fourth quarter with confidence in our roadmap and our guidance, which Mike will detail shortly. During the third quarter, we saw continued momentum across our core business lines and geographies, enterprise sales, remained strong in our SMB customer category, achieved a third straight quarter of sequential growth, which is encouraging. Client and endpoint solutions delivered yet another solid quarter, while advanced solutions was down slightly year over year, though both server and storage posted strong double-digit gains. Networking grew modestly, driven by an increase in AI proof-of-concept activity and enterprise, partially offset by tough comparisons to last year's strong virtualization sales. As we all know, enterprise companies and technology vendors alike are navigating the unchartered territory of AI transformation. In the third quarter, the pace of change accelerated rapidly with a wave of new partnerships and investments across the industry. Today, we're seeing enterprise customers at varying stages of their AI proof of concepts, mostly on-prem, and still primarily focused on the compute layer, often in conjunction with open models. The ultimate goal for these enterprises is to create purpose-built, end-to-end solutions using agentic AI, solutions that will redefine their operations, elevate customer engagement, and deliver strong returns. We are well positioned to support this customer journey, particularly as it moves from early adopters to the broader market. To do this, we've invested ahead of the curve, as we did in the early days of the internet, advanced solutions, and cloud. Following the same playbook over the past three years, we've been executing a multi-year plan to build an AI ecosystem. We stand at the center of the $5 trillion global technology landscape with more than four decades of experience helping customers embrace technology disruption. This, in conjunction with our proprietary AI innovation, puts us in a unique position to lead our customers on their AI journeys. We are doing this with our internal expertise through our XVantage platform alongside our external customer-facing Enable AI program that educates and equips partners to assess, sell, and deploy AI. With XVantage, we're driving real business outcomes. from meaningful OpEx reductions to automated top-line growth, powered by our Intelligent Digital Assistant, or IDA, which we discussed last quarter. XVantage was architected three years ago with a proprietary AI factory that supports hundreds of machine learning models across vast data sets. It's not only a growth engine, but a learning platform that fuels demand generation for our sales associates and customers. The AI factory allows us to design integrated solutions that bring together AI, cybersecurity, and cloud, which is crucial because collaboration across the ecosystem is critical to unlocking AI's full potential. Many of our vendor partners are now co-creating solutions with other vendors. With Xvantage, we can deliver these integrated bundles through a seamless self-service experience that combines hardware, software, cloud, and services. For our customers and vendor partners, Ingram Micro's Enable AI program provides the tools to gauge readiness, sell AI solutions, and deliver measurable business outcomes at scale. It provides a structured, step-by-step path to AI success through maturity assessments, base camps for foundational learning, growth tracks with leading vendors, and access to global centers of excellence. Since its launch in early 2025, the Enable AI program has engaged thousands of customers supported by our leading vendor partners to walk through the complex AI opportunity with clarity and confidence. As proof points of the program's early success, AI is the most viewed resource content category on Xvantage by our customers. Additionally, one of the world's largest hyperscalers is using our Enable AI program to simplify customer AI certifications and a leading GPU vendor is collaborating with us on a multi-vendor AI solutions for key industries. Both these internal and external efforts rely on the accelerating momentum of our XVantage platform, which is visible in our metrics. In the third quarter, IDA contributed hundreds of millions of dollars in incremental revenue. We also had rapid international adoption of IDA. with IDA-driven revenue and non-US operations growing by more than 100% in the quarter. IDA also drove Q3 quote-to-order conversion rates, nearly double those of non-IDA engagements. Earlier this week, we announced our first enterprise-grade AI agent built with our XVantage AI factory, empowered by Google's Gemini large language models. This demonstrates how we are combining our internal AI intelligence, which is more than 400 models strong, with Gemini's advanced reasoning and language capabilities. The new agent, known as Sales Briefing Assistant, introduces a new standard for intelligence, scalable sales enablement in the enterprise. The agent will also help AIDA generate better quote conversions. driving complimentary intelligence for our entire sales lifecycle and pipeline. These innovations demonstrated how our AI-first strategy is playing out in tangible, measurable capabilities. As we enter the fourth quarter, it's remarkable how much has changed in just one year since our IPO. While the pace of change in our industry is staggering, we continue to focus on what always guides our roadmap, and that is our customers. We understand that our success is dependent upon them, and what matters most is that we enable them to capture and deliver the value to the millions of end businesses they serve each and every day. One of our longtime customers, Mark Suter, president of Access Group and a TrustX Alliance community member, reminded us of this recently when he said, and I quote, In my 32 years in IT, I've never experienced a partnership like the one I have with Ingram Micro. I see my own vision reflected in your innovations. It feels like you're building and iterating with me, not just for me. As an example, with Xvantage, our year-end cloud billing process went from three full days to just three minutes." At the end of the day, regardless of the sophistication of technology we are enabling, our biggest differentiator is our ability to serve our customers wherever they are in their technology journeys. We are grateful for our customers, our partners, and our team members for their dedication and creativity as we transform the B2B experience together. With that, I'll turn the call over to Mike. Mike?