Ingram Micro Holding Corporation

Greetings and welcome to the Ingram Micro first quarter 2026 earnings results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the call over to Willa McMahon, Vice President of Investor Relations, for opening remarks. Please go ahead.

Good afternoon. Before we begin, I would like to remind you that today's presentation may include forward-looking statements within the meaning of applicable securities laws. These statements reflect our current views and expectations regarding future events, including but not limited to financial performance, strategic initiatives, market conditions, and regulatory developments. Forward-looking statements are inherently subject to risks and uncertainties, many of which are beyond our control. Actual results may differ materially from those expressed or implied in these statements due to a variety of factors, including changes in economic conditions, interest rates, competitive pressures, and other risks detailed in our most recent filings and public disclosures. We undertake no obligation to update or revise any forward-looking statements to reflect new information or future events, except as required by law. In addition, today's discussion may include certain non-GAAP financial measures, reconciliations to the most directly comparable GAAP measures can be found in our earnings materials, which are available on our investor relations website. With that, I will now turn the call over to Paul Bay, our CEO.

Thank you, Willa, and everyone who joined today's call. We delivered another strong first quarter in which we grew net revenue nearly 14% on top of a strong prior year comparable and delivered non-GAAP earnings per share of 75 cents. Gross profit rose by nearly 12% from last year, and operating leverage remained strong, resulting in over 20% growth in non-GAAP net income. All of these results were at or above the high end of our guidance. Advanced solutions in cloud led the growth. Driven in part by large GPU and AI infrastructure deals, we captured in North America and Asia Pacific in the back half of the quarter. We also had another quarter of strong growth in networking and servers. Cloud again grew double digits with particular strength in infrastructure as a service, and client and endpoint solutions also grew with continued strong sales of PCs. Regionally, Asia-Pacific grew at double digits and was our second largest region by net revenue. As I mentioned in prior quarters, India continued to make progress and performed a plan in the first quarter. including healthy top line and margin growth, while Latin America continued to deliver outsized margins, both powered by our X-Vantage platform. North America's double-digit growth was driven by cloud and advanced solutions, which included large GPU and AI infrastructure sales. The growth across all four of our regions underscores our unique global reach, where we have the ability to serve more than 90% of the world's populations. underpinned by a unified platform strategy at global scale. I am encouraged by our performance this quarter and the momentum we see ahead. Our investment in our XVantage digital B2B platform is increasingly becoming a competitive moat. We made this investment ahead of the curve because we anticipated the shift now taking place across the market where B2B customers increasingly expect the same speed, simplicity, and personalization they experience in B2C environments. We began the XVantage journey by bringing together talent from some of the world's largest leading platform companies and combining that expertise with our deep industry knowledge. We then built a real-time data mesh and deployed more than 400 AI and machine learning models designed across the end-to-end customer journey. We have progressed from building the foundation to automating workflows and reducing friction, to now scaling intelligence through capabilities like Intelligent Digital Assistant, or IDA, to improve conversion, optimize pricing, and enable more proactive selling. Over time, we see further opportunity for AI to enhance margin quality, lifecycle monetization, and operating leverage. XVantage is not a tool or a marketplace. It is the operating system for B2B. It's a global real-time intelligence layer powering end-to-end B2B execution as we transform from a traditional IT distributor into a platform company. XVantage's differentiation begins with its architecture and the proprietary technology underneath it. We are pleased that four of our 35 plus patent pending applications have been granted, recognizing and protecting the innovation already delivering value across our platform today. Our IP strategy is centered on solving the fragmented sales and fulfillment processes that define B2B commerce. Let me recap what these granted patents encompass. First, our vendor agnostic framework uses our AI-driven architecture to integrate with vendors at scale, regardless of the format or underlying systems. This helps solve one of the most persistent challenges in B2B commerce by enabling real-time integration around inventory, pricing, and product data across a highly fragmented ecosystem. Second, our dynamic SKU generation capabilities simplify historically complex solution configuration, pricing, and transaction workflows. What once took days or weeks can now be completed in minutes or even seconds, improving the speed, accuracy, scalability, and customer responsiveness. Third, we were granted a patent for our configure and quote to order. Configure to order expands funnel creation through automation of complex, configurable solutions that were once manual, generating high quote volume, allowing us to touchlessly convert orders through our automated quote to order capabilities. This powerful integration of AI throughout the sales lifecycle is helping drive materially stronger quote to conversion performance. Last, our email-to-order patent uses generative AI to convert unstructured customer emails and attachments into structured transactions. In the first quarter alone, it processed approximately 230,000 emails into orders, up 78% year over year, enabling more than $1 billion in sales with significantly lower manual touch. We are now leveraging this patent IP to enable other functionality for automating end-to-end workflow, like email to quote, further improving speed, responsiveness, and overall customer experience. Taken together, the technology behind these patents is helping improve customer experience while lowering processing costs and increasing operating leverage across the channel. These innovations extend beyond individual capabilities and reflect how we are digitizing the full transaction lifecycle. from automating vendor catalog injection, configuration and pricing, to quoting and order execution through a unified AI-driven platform. With the rapid evolution of the AI market, we believe these investments position us well to navigate change and respond more quickly to capitalize on market dynamics. We are increasingly applying intelligence across core business processes as our AI models continue to learn, improve, and scale. As an example, AIDA and other AI capabilities delivered more than 153,000 proactive engagements in the quarter, helping customers convert more than 800 million in AI-led net sales during the quarter. Importantly, code-to-conversion performance continues to accelerate with AIDA-driven opportunities converting at nearly four times our standard baseline. XVantage is driving stronger engagement, improving the customer and associate experience and supporting better financial outcomes. And we are already seeing that translate into measurable results. We continue to see strong adoption of our self-service capabilities with more than 2 million self-service orders in the quarter, contributing to over 20% growth in average revenue per customer versus the prior year. We are also realizing meaningful productivity gains with both revenue and margin per go-to-market resource increasing as automation enables associates to redirect time towards higher value activities. We believe this is a strong indicator that the digital adoption, automation, and AI-enabled selling are driving greater efficiency and increasing operating leverage across the platform. Geographically, we continue to see proof points across markets. These examples reinforce that xVantage is not limited to one region. It is a global operating model. We have moved from proving the model to scaling the model with further future expansion opportunities. In the first quarter, India and Latin America provided clear evidence that we are moving from adoption to performance. Through X-Vantage-enabled capabilities, LATPAM delivered the highest gross margin across our regions, up 69 basis points year over year. By shifting high-velocity F&B demand to self-service and automated quoting and embedding intelligence, Our business in the region is scaling efficiently with improved outcomes. In India, X-Vantage is providing more pipeline, increased proactive customer engagement, stronger revenue generation, higher quote-to-order conversion, and more predictable performance utilizing the platform. In India, AIDA revenue grew more than 200% quarter-over-quarter. innovating across the company in other ways as we invest in our partners and build advanced AI competencies. On the vendor side, I am proud to say that we just achieved the specialization for AI apps with Microsoft. Using Azure AI services, we built AI power capabilities that help partners close customer deals through increased automation, including streamlining the statement of work generation and accelerating sales productivity. The specialization recognizes our professional service expertise in designing and developing AI solutions using Microsoft AI app and data platforms, which we can leverage on behalf of our partners to deliver more AI projects at scale. One of our key partners, Hans Meis, president of Data41, said about the designation, and I quote, Ingram Micro feels like an extension of our AI practice. They're specialized in validated expertise helps us guide our customers through the full journey, from initial assessment to working proof of value and production deployment, end quote. This specialization speaks strongly to how we are expanding our advanced services capabilities, including our ability to leverage AI with our partners to deliver technology outcomes to the millions of end businesses they serve each and every day. With this quarter's results and the continued momentum I just spoke about, as I look at the remainder of the year, I am confident that Ingram Micro will continue executing both our short and long-term strategy by further differentiating as a platform company, regardless of the uncertainty. Our customers are at the center of everything we do, and we are grateful for them. And as always, I am impressed by the talent and drive of our team, who continues to deliver. With XVantage enabling faster innovation, our patents securing our technology edge, and AI delivery measurable outcomes, we are moving from proving the platform model to scaling it. It's an exciting time for technology, and Ingram Micro's role in the ecosystem continues to expand as we embrace the opportunities ahead in this unprecedented era. And with that, I'll turn the call over to Mike. Mike?