IT distribution giant Ingram Micro (NYSE: INGM) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 11.5% year on year to $14.88 billion. The company expects next quarter’s revenue to be around $12.63 billion, close to analysts’ estimates. Its GAAP profit of $0.51 per share was 23.6% below analysts’ consensus estimates.

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“Ingram Micro delivered a strong fourth quarter and full year, and we enter 2026 with confidence. We exceeded the high end of our net sales and EPS guidance and saw growth across all of our regions,” said Paul Bay, Ingram Micro’s Chief Executive Officer.

Company Overview

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $52.56 billion in revenue over the past 12 months, Ingram Micro is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it’s harder to find incremental growth when you’ve penetrated most of the market. To expand meaningfully, Ingram Micro likely needs to tweak its prices, innovate with new offerings, or enter new markets.

As you can see below, Ingram Micro’s sales grew at a sluggish 1.4% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Ingram Micro’s annualized revenue growth of 4.6% over the last two years is above its five-year trend, which is encouraging.

This quarter, Ingram Micro reported year-on-year revenue growth of 11.5%, and its $14.88 billion of revenue exceeded Wall Street’s estimates by 5%. Company management is currently guiding for a 2.8% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

Ingram Micro’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 1.8% over the last five years. This profitability was inadequate for a business services business and caused by its suboptimal cost structure.

Analyzing the trend in its profitability, Ingram Micro’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, Ingram Micro generated an operating margin profit margin of 2.1%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Ingram Micro’s full-year EPS dropped 57.9%, or 16.4% annually, over the last three years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Ingram Micro’s low margin of safety could leave its stock price susceptible to large downswings.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Ingram Micro, its two-year annual EPS declines of 6.4% show it’s still underperforming. These results were bad no matter how you slice the data.

In Q4, Ingram Micro reported EPS of $0.51, up from $0.36 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street expects Ingram Micro’s full-year EPS of $1.39 to grow 68.3%.

Key Takeaways from Ingram Micro’s Q4 Results

We enjoyed seeing Ingram Micro beat analysts’ revenue expectations this quarter. We were also glad its revenue guidance for next quarter was in line with Wall Street’s estimates. On the other hand, its EPS missed. Overall, this quarter could have been better. The stock traded up 7.8% to $23.04 immediately after reporting.

Is Ingram Micro an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).