Insight Enterprises
IT reseller and solutions integrator connecting Microsoft, Google, and other tech vendors to enterprise buyers.
On the record
Checkpoint: Q2 2026 earnings report, first full quarter under new CEO Jack Azagury
The call
Insight is trying to out-run resale decline with higher-margin cloud and services work while a new CEO bets on an AI-first pivot that has not yet proven it can replace what hyperscalers are taking back.
Insight Enterprises buys software and services from big tech companies like Microsoft and Google, then sells and sets them up for businesses. These relationships with Microsoft and Google have been strong for 30 years, but they are not hard to protect because Microsoft and Google can sell directly to customers instead, which happened with Google in 2025 and cost Insight about $70 million. The company is also losing sales to artificial intelligence tools that can do some of the advice work Insight used to do. The one thing that matters most is whether Insight can grow its higher-profit cloud setup and ongoing management services fast enough to make up for the money it is losing from selling cheaper products and having less of the advisory work.
Why
01
AI pressure: Hyperscaler-native AI advisory tools and LLM-based consulting assistants. AI tools now handle basic use-case discovery and setup advice, cutting into the low-end consulting work Insight used to bill for. Could AI do the core job? Yes, likely.
02
Bigger players: Google Cloud and Microsoft. Google's 2025 partner-program change alone cost Insight about $70M in gross profit; Microsoft could restructure its own terms next. Could a giant copy it? Yes, easily.
03
What protects it. Deep, decades-old vendor certifications and enterprise relationships that are hard to replicate fast, even if not exclusive.
What would change this call
Microsoft announces a partner-program restructure similar to Google's 2025 SADA change. Would show hyperscaler margin squeeze spreading beyond Google to Insight's largest vendor relationship.
Q2 2026 earnings (~July 30, 2026) show cloud/services gross-profit growth decelerating from Q1's +35%/+23% YoY. Would indicate the high-margin services pivot is losing momentum against resale decline.
Insight reports whether the ~$70M SADA-related gross-profit headwind persists or worsens into H2 2026. Would confirm whether the Google partner-program hit is a one-time event or an ongoing structural drag.
Q2 2026 earnings (~July 30, 2026) show cloud/services gross-profit growth decelerating from Q1's +35%/+23% YoY. Would indicate the high-margin services pivot is losing momentum against resale decline.
Insight reports whether the ~$70M SADA-related gross-profit headwind persists or worsens into H2 2026. Would confirm whether the Google partner-program hit is a one-time event or an ongoing structural drag.
Key numbers
- FY2025 net sales $8.2B, down 5% YoY
- Google SADA deal cost ~$70M gross profit in 2025
- Q1 2026 cloud gross profit up 35% YoY
Named risks
- Google/SADA partner-program renegotiation cut ~$70M gross profit in 2025 with a tail into H2 2026.
- Net sales declined two straight years, $8.7B to $8.2B, both down 5% YoY, as commodity resale shrinks.
- New CEO Jack Azagury's AI-first pivot, begun April 13, 2026, is unproven at scale.
- Rising memory and component costs pressuring hardware resale margins into 2026.
- Total debt rose to ~$1.5B against a $2B asset-based lending facility as of Q1 2026.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| losing to | Google's SADA partner-program change cost Insight ~$70M gross profit in 2025, tail into H2 2026 | |
| Microsoft | contesting | Insight became Microsoft 365 E7/Agent 365 launch partner, announced July 2, 2026 |
| CDW Corporation | contesting | Larger direct competitor in the IT solutions-integrator/VAR market as of 2026 |
| Hyperscalers (AWS, Azure, GCP) | losing to | Direct and platform-native selling squeezes partner margins per Feb 5, 2026 earnings commentary |
Questions people ask
- Is Insight Enterprises profitable in 2026?
- Yes but shrinking: FY2025 GAAP net earnings were $157.3M, down 37% YoY, on net sales of $8.2B (down 5% YoY). Adjusted EPS was $9.87 for FY2025, and 2026 guidance calls for adjusted EPS of $10.10 to $10.60, as reported February 5, 2026.
- Who is Insight Enterprises' biggest competitor?
- CDW Corporation is Insight's closest direct rival in the IT solutions-integrator/VAR space, alongside SHI International and Connection. Insight also faces margin pressure from hyperscalers like Google, whose 2025 partner-program change cost Insight roughly $70M in gross profit.
- Could AI replace Insight Enterprises?
- AI threatens Insight's low-end advisory and procurement-scoping work, and management admitted it is 'still not pleased' with organic services growth as of May 8, 2026. Insight's counter is its Prism AI-transformation platform and 22 Microsoft specializations, but this defense remains unproven.
- Who owns Insight Enterprises?
- Insight Enterprises is publicly traded on Nasdaq as NSIT, part of the S&P SmallCap 600, with no controlling private owner. Institutional holder ValueAct Holdings trimmed its stake by about $99M in Q4 2025, per a February 20, 2026 SEC filing.
- Is Insight Enterprises losing ground to Google?
- Yes. Google's SADA partner-program changes created an approximate $70M gross-profit headwind for Insight in 2025, with a residual financial tail expected into H2 2026, according to Insight's February 5, 2026 earnings call.
- What is Insight Enterprises' new CEO doing differently?
- Jack Azagury, former Accenture Chief Group Executive with 29 years there, became President/CEO on April 13, 2026 to push an 'AI-first Solutions Integrator' strategy. Under him, Insight paused M&A for the rest of 2026 and repurchased $75M of stock in Q1 2026.
Timeline
- 2026-07-02Insight becomes launch partner for Microsoft 365 E7 Frontier Suite and Agent 365
- 2026-05-08Q1 2026 earnings call: M&A paused for 2026, $75M shares repurchased
- 2026-04-20Wins Google Cloud Partner of the Year for ninth consecutive year
- 2026-04-13Jack Azagury becomes President and CEO
- 2026-03-31General Counsel Sam Cowley and NA President Dee Burger depart
- 2026-03-23Jack Azagury announced as incoming CEO
- 2026-02-05FY2025 results reported; discloses ~$70M Google gross-profit headwind
- 2025-11-12Launches Insight AI and proprietary Prism AI-transformation platform
- 2025-10-01Acquires Inspire11 to expand AI and business-transformation capabilities
- 2023-12-01Completes ~$410M cash acquisition of Google Cloud partner SADA
Revision history
20 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Insight Announces Jack Azagury... as President and Chief Executive Officer (2026-03-23)
- ValueAct Holdings Trims Insight Enterprises... (2026-02-20)
- James Investment Research Inc. Sells 23,248 Shares... (2026-04-28)
- Insight Acquires SADA (2023-11-30)
- Insight Enterprises names Jack Azagury as new CEO (2026-03-23)
- Revenue dips, margins expand amid AI strategy pivot (2026-02-05)
- Insight Enterprises Reports Fourth Quarter and Full Year Results (2025-02-06)
- Insight Enterprises Reports First Quarter Results (2026-05-07)
- SADA Accelerates Enterprise AI Adoption and SecOps Excellence at Google Cloud Next 2025 (2025-04-04)
- Insight Wins 2026 Google Cloud Partner of the Year Award for Global Workplace AI Transformation (2026-04-20)
- Insight Enterprises Number of Employees 1996-2025 (2026-07-01)
- Insight Enterprises Number of Employees 2026 (2026-06-29)