This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Sector

Culture rank

Process rank

Product rank

Years on list

Previous rank

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

"Ingram Micro is a leader in technology distribution and supply-chain services, functioning as an intermediary between technology manufacturers and customers that include retailers, value-added resellers, and enterprises. The company’s core business revolves around the distribution of IT products and solutions, which include security, cloud infrastructure, business applications, communications, backup and disaster recovery, and managed services. Ingram Micro also offers a suite of services such as financing, marketing, life-cycle management, and technical support. The company’s digital platform, Xvantage, leverages artificial intelligence and machine learning to support the B2B customer experience. Ingram Micro’s global network serves more than 165,000 customers and 1,500 vendors worldwide.
 
 Founded in 1979 as Micro D Inc., Ingram Micro rapidly expanded through a series of mergers and 45 acquisitions, including the 2012 purchase of BrightPoint, a major provider of device life-cycle services."

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Ingram Micro Holding (INGM): Company Profile, Stock Price, News, Rankings

legacy

Ingram Micro Holding

ingram micro holding

Thank you, operator. I'm here today with Paul Bay, Ingram Micro's CEO and Mike Silas, 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 eight ks 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 $12,300,000,000 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 $829,000,000 came in more than 2% above the midpoint of our guidance and non GAAP EPS of $0.61 was at the high end of our guidance.

North America and Asia Pacific both saw double digit net sales growth. EMEA 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 twenty twenty five are harder to forecast given the volatility resulting from the macroeconomic and trade environment, which Mike will discuss, we are optimistic about the future. We believe that Ingram Micro's four point five 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 $600,000,000 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, 32,000,000 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 Inger Micro is providing go to market scale and leverage within our ecosystem is our intelligent digital assistant.

We call this IDA. AIDA 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, hundreds of millions in year over year incremental revenue. IDA 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 12,000,000 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 digit 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 51,000,000 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. Industry analysts are also taking note of the platform advantages. A research VP at IDC noted, and I quote, Ingram Micro's Xvantage platform and new Xvantage integrations hub demonstrate the balance required between integrations and interactions to build a digitally enabled organization that prioritizes the customer experience.

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 recommendation 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 service is paying off and 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 forty five 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 Paul's comments that we are very pleased with our performance in the first quarter, driving notable growth in both top line and profitability. As I will cover shortly, for the second quarter, we also expect a similar trend in mix as we saw in Q1, but with continued overall growth as we navigate the uncertainties of the macro and 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 from increases related to tariff thoughts and the rest of our

Sorry for the confusion. At this time, we are going to go live to our presenters.

Hey, sorry. We understand there was some audio difficulties at once I picked up from Paul. So I'm just going to pick back up from the start on our prepared remarks and we'll go from there, okay? So, I'm going to start by reiterating Paul's comment that we are very pleased with our performance in the first quarter, driving notable growth in both top line and profitability. As I will cover shortly, for the second quarter, we also expect a similar trend in mix as we saw in Q1, but within continued overall growth as we navigate the uncertainties of the macro and 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 impacts. As most of you know, we pass through price increases related to tariffs, but like the rest of our ecosystem, we expect that overall demand may be impacted as uncertainty around these policies persist. Modeling this impact is challenging, but it's worth pointing out that we have successfully operated in an elevated tariff environment at least to some degree for the better part of the last nine years. In The U. S, we are not the importer of record on the vast majority of our products that we purchase and therefore we bear very few tariffs directly.

We continue to monitor closely and discuss the pricing behaviors of our vendors while we drive our own dynamic pricing models around this. But the pass through nature of our business still exists even where tariffs are indirectly embedded into the pricing of products we purchase. Outside of The U. S, the impact of tariffs will depend on whether other countries choose to raise their own tariffs as well as the impact of potential inflation brought on by this environment. We are collaborating closely with our vendors to understand tariff impacts at a SKU level for more precise decision making.

We believe our increased automation and AI capabilities enable us to be even more nimble in response to changes in the pricing and demand environments than we have in the past. That said, our Q2 guidance reflects the potential impact of tariffs and the macro environment as a prudent reflection of what we see today. Now turning to the first quarter results. Net sales of $12,280,000,000 were up 8.3% year over year in U. S.

Dollars and up nearly 11% on an FX neutral basis. Net revenue mix was similar to the fourth quarter from a line of business, geographical and customer category perspective. We saw sales of client and endpoint solutions growing most robustly at nearly 15% on an FX neutral basis. However, we also saw year over year growth in Q1 in each of our four lines of business, including our advanced solutions and cloud categories, driven by servers and cybersecurity, but also notably networking, which returned to low single digit growth after multiple quarters of year over year top line pressure, as we've discussed in prior quarters. Geographically, we saw continued strength in lower cost to serve and lower margin geographies, particularly in Asia Pacific.

However, North America amplified its return to a growth trajectory from the fourth quarter, double digit growth in the first quarter. From the perspective of our customer categories, large corporate and enterprise sales again outpaced higher margin SMB sales, which remain more muted as near to midterm macro uncertainty continues. As a result of these mix factors and as expected, overall gross margins were down 62 basis points versus prior year. Longer term, we expect that higher margin net sales from Advanced Solutions and Cloud products will become a greater percentage of the overall top line, driving gross margin improvement. As an example, our Cloud business, widely about 1% of our net sales, contributed nearly 15% of total gross profit in the first quarter of this year, up from 13% a year ago.

Turning to our regional segments. North America net sales were $4,430,000,000 up 10.4% year over year on an FX neutral basis driven by double digit growth in client and endpoint solutions, but also by more than 7% growth in advanced solutions. Consistent with my earlier global comment, our sales in North America were more concentrated in large corporate and enterprise customers. EMEA net sales of $3,420,000,000 were up 0.6% year over year on a U. S.

Dollar basis, but up 3% on an FX neutral basis, also driven by client and endpoint solutions as well as by very strong double digit growth in cloud. This was partially offset by softer advanced solutions demand environment particularly in Western Europe markets as we expected. Asia Pacific had our strongest growth in Q1 with net sales of $3,620,000,000 up 20.1% year over year in U. S. Dollars and up 23.2% on an FX neutral basis.

India, which we discussed in-depth last quarter is trending as expected as we rebuild the go to market team and refocus the organization with the expectation of improvements in margin and continued top line growth in the back half. As we sit here now in early May, we are seeing the hyper competitive market in India that we discussed in early March starting to stabilize a bit. Even in this more challenging market, we drove mid single digit FX neutral growth in our India business in Q1. From a line of business perspective, Asia Pacific saw double digit growth across client and endpoint solutions, advanced solutions and cloud leading to the strong overall top line growth I just noted. Decline in Endpoint Solutions growth is particularly accentuated by very strong double digit growth in lower margin mobility device sales in a few markets within the region.

Latin America net sales were down 8.5% in U. S. Dollars at $8.00 $3,000,000 but down only 0.3% in constant currency, somewhat consistent with what we saw in the fourth quarter and reflected particularly of strength in cloud offset by a more neutral performance in client and endpoint solutions and a slight decline in advanced solutions. First quarter gross profit came in at $829,000,000 or 6.75% of net sales. While this is down year over year on the mix and India market factors that I've already discussed, we are generally seeing margin rate hold fairly steady to slightly down on like for like categories of products and customers in a generally heightened competitive environment.

Q1 operating expenses were $628,000,000 or 5.11% of net sales compared to 5.87% in the same period last year. This year over year improvement in OpEx leverage is driven largely by the significant cost actions we have taken over the last two years, including the actions we announced in December 2024. However, this leverage is also a result of a higher concentration of sales and client and endpoint solutions where our cost to serve has historically been lower and where the automation we have brought to the table with Xvantage is creating even better leverage today. For the full fiscal year 2025, we expect OpEx as a percentage of net revenue to remain above 5% as we continue to invest in our Xvantage platform, but also in personnel around our strategic priorities including technical go to market skills to address our higher margin advanced solutions and cloud businesses. As discussed in our March earnings call, on a longer term basis, we expect our annual run rate of OpEx as a percentage of net sales will fall below percent as we realize efficiencies and hit more steady state with Xvantage.

Adjusted income from operations was $229,000,000 and adjusted income from operations margin was 1.87% compared to 1.96% in the first quarter of twenty twenty four as our strong OpEx leverage offset a majority of the mix driven decline in gross margins year over year. Non GAAP net income in the quarter was $144,000,000 compared to $135,000,000 in Q1 of twenty twenty four, an increase of nearly 7% in U. S. Dollars and more than 11% in constant currency as we also benefited year over year from a $13,000,000 decrease in net interest expense on debt repayments which I will cover in more detail shortly. Our non GAAP diluted EPS was $0.61 per share at the high end of our guidance for Q1.

We continue to drive strong working capital management with Q1 working capital days at 29 compared to thirty three days in the same period of 2024. The improvement reflects our focus on cash conversion driven by disciplined management of our terms with and payments to vendors as well as strong receivable collection efforts more than offsetting some targeted investment in inventory to capture market opportunities all while navigating tariff uncertainties and keeping working capital optimization front and center. Adjusted free cash flow was an outflow of $159,000,000 in the first quarter which is in line with our seasonal expectations and indicative of some pre buying that we did in anticipation of tariffs as well as the overall growth in the business. The counter cyclicality of our business may drive some continued working capital investment as we grow. However, this is always with return on investment in mind and we remain committed over time to get to a mark of 30% or more of our adjusted EBITDA dropping down to free cash flow on an annual basis.

The seasonality of investment in working capital will make this metric more volatile on a quarter to quarter basis. As we think about our use of the balance sheet to support the market, I'd like to take a few moments to highlight our strategy around channel financing. In addition to our traditional trade credit, we also offer a number of dedicated channel financing solutions to help our partners manage through rising technology costs, multi year subscription arrangements and a higher focus on cash flow optimization. What sets our channel financing model apart is that it is not burdening our balance sheet. We leverage a global network of specialized funding partners to deliver flexible financing solutions tailored to our customers and partners' cash flow needs.

This allows customers to invest in IT without large upfront outlays and helps vendors secure longer term commitments. Revenue volume supported by our channel financing model has more than doubled over the past four years now driving hundreds of millions in annual revenue and accretive margin while preserving working capital discipline and a seamless channel experience. Back to cash flows and balance sheet. In late March we paid down an incremental $125,000,000 of our term loan balance bringing our total repayment on term loans to $1,690,000,000 since 2022 and bringing our net debt to adjusted EBITDA ratio to two point zero times to close Q1 improved notably from 2.3 times in the first quarter of last year. We also paid our first quarterly dividend in Q1 returning $17,400,000 to stockholders during the quarter and we are proud to have announced today a 2.7% increase to that quarterly dividend to be paid in Q2.

Now shifting to our guidance for Q2, let me preface this by saying our guidance is based on how we see the market today. But as we all see this is changing almost daily in some regards. With this in mind, we are guiding to net sales of $11,770,000,000 to $12,170,000,000 which represents year over year growth of nearly 4% at the midpoint. We expect second quarter gross profit of $800,000,000 to $850,000,000 which would represent gross margins a bit under 7% as some of the similar geographic product and customer category mix factors continue into Q2. We expect non GAAP diluted EPS to be in the range of $0.53 to $0.63 per diluted share which would be an increase of $04 per share or more than 7% growth at the midpoint.

This guidance is also reflective of some heightened inventory investment in the interim months of Q2 as a result of buy in opportunities ahead of potential tariffs which in turn drives slightly higher interest expense. Our EPS guidance assumes weighted average shares outstanding of approximately 235,200,000.0 and a non GAAP tax rate of 29.1%. Our Q2 guidance considers our current views on the macro and tariff environment including trends in pre buying and the ninety day respite on tariffs on many countries. We continue to see we continue today to see healthy activity and remaining and we remain particularly enthusiastic about a continued demand environment in Advanced Solutions. While we are weighing this with the potential for price increases related to tariffs and some extension in the sales cycle where some customers wait to see how the environment evolves as they consider their overall capital spend decisions.

Such extensions are particularly true in the higher profit SMB space which is generally more sensitive to potential inflationary factors. This is where we are confident however that our investments in innovation are bearing fruit in terms of leverage, efficiency and top line acceleration through this market. We will continue to engage with our vendor partners and customers to quickly navigate changes in the demand and pricing environments as we focus on the success of our partners and our team. With that, we can now open the call to questions. Operator?

Your first question comes from Samik Chatterjee with JPMorgan. Your line is open.

Hi. Thanks for taking my question. Maybe if I can start off with sort of the macro related comments that you had here and interested to hear, I know you mentioned SMB is a bit weaker and for the larger enterprises, if I understood you correctly, you're expecting to see maybe a bit more sort of longer sales cycles, but still more moderate sort of reaction to the macro. But maybe if you can just flesh that out a bit more and why shouldn't we expect maybe larger enterprises to eventually follow directionally where the SMB weakness is? What are you seeing in terms of maybe large projects and intent from large enterprises to continue with the large projects related to IT infrastructure and what's giving you confidence on that front?

Yes. So I can jump in. This is Paul. Thank you for the question. If we look at it, you may have heard us talk as we're exiting 2024 on our last call with SMB had some headwinds and so there was still it was down for the quarter.

But if you look at it was actually improving year over year. So we are seeing some green shoots relative to some pockets where we're seeing improvement on that. And that large enterprise business and conversation with customers and we look at our pipeline the demand continues to be strong. And we think that that's going to continue based off the conversations we've had thus far both with our customers and with our vendor partners also.

Got it. Got it. And then maybe for the quarter and relative to both 1Q and 2Q, if you can start by with maybe helping us with when you think about the mix between Client Solutions related to Advanced Solutions, how was the how did the mix track between those relative to your expectations for 1Q? And what are you embedding in there embedding in terms of mix for 2Q in terms of your expectations? And how much of that client solutions trend are you treating as a pull forward from the second half?

Yes. This is Paul again and I'll let Mike jump in. Relative to kind of the mix of our client endpoint solutions business performed very well as we talked about the refresh happening and the desktop and notebook. So that was very strong. Our smartphones was also strong within that category.

Advanced solutions I'm proud to say and we were pretty accurate coming out of the last call on networking because we had talked about that we had double digits for fiscal twenty twenty, exiting 2024 and the expectation both that we saw in our pipelines and the key indicators we were seeing in our business that we thought that it was going to start making a turn. And I know the likes of IDC so there's going to be growth on the networking business. So we did see low single digit growth in Q1 and our server business continues to perform well and cyber security remains healthy also. That said with regard to what we're putting in our guide for Q2 we don't see a dramatic shift in terms of the product mix. We do think from a system standpoint it may not be as heightened as it was in Q1 but we definitely see strong growth in that category and not a dramatic mix relative to any other topics I just mentioned.

Mike, don't know if you have any other comments on that.

Yes. Samik, I think the only thing I would just add, yes, I think the big factor is we're assuming a slightly lower client and endpoint piece, not the solid double digit we just closed with almost 15% growth in Q1 in our Q2 guide, but we're considering still some growth in Advanced Solutions, certainly growth in cloud. And then I think as Paul touched on the client I'm sorry, on the customer side of the spectrum, As has been the case for the last two quarters, we see the large enterprise customers and we're just taking a we're continuing to take a conservative view on where SMB goes because as I said in my prepared remarks, we still see quite a bit of more mutedness there since that is a group of end user customer base that's going to be more susceptible to an inflationary or God forbid a recessionary environment. And therefore we take a closer look on that as to how we see the customer end of the spectrum growing and we believe that we will still be more concentrated in the lower margin large enterprise customers.

All right. Thank you. Thanks for taking the question.

Your next question comes from Eric Woodring with Morgan Stanley. Your line is open.

Super. Thank you for taking my questions guys and congrats on the quarter. I just wanted to follow-up on Tomik's question there. Just if you could maybe, Mike, help us kind of size the pull forward that you saw in 1Q. Like if we were to think about the upside relative to the midpoint of your 1Q guidance, is that how we should gauge the pull forward?

Or what's the right way to think about that? And how are you then taking that into account in your 2Q guide? If I just look at it, it looks like you're guiding down about two percentage points sequentially. History shows you're kind

And so just if you could help us understand that dynamic and how it influences your 2Q guide that would be super helpful.

Yes. Eric, I'll start. It's Paul. So the Q1 pull forwards with regard to we did see slight but I would call it not material.

And it was really I want to be clear about this too. It's really around the PC refresh and not the other products. As we talk about growth in some of the other categories that wasn't a pull forward. So if there was a pull forward that we'll see it was in really that PC refresh. If you look at it from a customer's perspective it was kind of a mixed bag.

There were some pull forwards in Q1 advance of the tariffs kind of what we saw in our business. And the customers would also say there was from an RFP RFQ kind of inbound kind of longer term. Those projects were delayed but they weren't canceled and the expectation is budgets aren't moving. So all the feedback that we're getting is that it's still they're still relevant and with the pricing uncertainty it's kind of those longer term ones. I would say neither of those were enough in Q1 to constitute what I would define as a trend.

And the question on Q2 guide and I'll let Mike jump in. It assumes a continued PC refresh. Mike touched on it more in the mid single digits in terms of what we're looking at from a growth rate perspective that we built into the Q2 guide.

Yes. So Eric, you pointed out about a 2% roughly decline sequentially.

That's right. And I think it is that I don't want to quantify as Paul just said that that's pull forward because there's a lot of other factors as Paul just hit on. But part of these factors just coupled with potentially a little bit more overhang as we see especially in that SMB space in Q1 is really leading to that Q1 guide and that growth factor.

Okay. That's really helpful. Thank you for all that context. And then maybe the second question is just, can you help us understand what you're seeing from a pricing perspective as we're here and kind of thinking about 2Q more so? But are you seeing vendors raising prices?

If so, what end markets is that most prevalent in? And how have customers responded to those prices? Could there be more to come? Again, all of that just kind of putting the pricing environment in context really here as

we think about the last maybe five or six weeks please? Thanks so much.

Eric, is Paul. I'll start. So as it relates to pricing there's been minimal pricing impact.

If there has been some changes it's been more around the peripherals and accessories depending on where the impact was. And keep in mind from an overall working capital standpoint and inventory that we already had in our system working through that. So not especially in Q1 and even as we sit here today in Q2 we haven't seen a lot of price raising and or changes thus far as we kind of work through what the tariffs is going to look like. I would also say today's announcement with The UK here recently is encouraging. And just overall from our perspective as you would expect certainty and predictability is good for our business and we've proven to be flexible and able to adapt quickly.

So we haven't seen this summarize that we haven't seen an impact from a pricing perspective and a lack of tolerance from our customers out to the end users.

Your next question comes from Anand Paruwa with Loop Capital. Your line is open.

Yes. Thanks, guys. Appreciate you taking the questions. I guess two, if I could as well. The first one, I guess, is, Paul and Mike, just on Xvantage.

And what's a good look, you gave a lot of great metrics. So appreciate that, and acknowledge it. And I guess what I'm wondering is sort of big picture, is there a good way to think about what the progress like I think, Paul, you said you're in like 27 to 50 something countries. Is there a useful way to think for us to think about, number one, kind of like ongoing progression and propagation throughout sort of your target map? Then I don't know, number two, a way to think about transaction penetration over time.

I guess anything useful there for us to see what you're shooting against? And like I don't know what the when I say shooting against, like maybe what the potential is? And I have a quick follow-up as well though I know that's not a quick question that first one.

So the way we look at it and on the thanks for the question. So there's three ways we look at the metrics and there's multiple metrics and our commitment was that we'll continue

we build out. So we're in 20 of our 57 countries which we continue to deploy Xvantage and on a global basis. And keep in mind remember when we do something it's number one it's global and it's same experience in all 20 countries that are deployed in. So we look at that as a differentiator A from a research and development and how we continue to build out and the investment we make as we do something to the code base it goes to all 20 countries right now and the expectation is we'll continue to roll those to the rest of the world. From a user, so the three metrics that we really talk about are three different ways.

One is user engagement. I talked about 12,000,000 searches, advanced searches. So we continue to see that increase. We look at it from a financial and operational perspective, triple the self-service orders versus the prior year. This just continues to demonstrate what we're focused on which is the customer ease of use, taking friction and OpEx out of the conversations, moving to more outbound versus inbound.

And then the third one is we look at it from a customer perspective. So again you heard us last time talk about we brought on over a couple of thousand I think was the number that I mentioned or was I believe 8,000 from a full year 2024 is what I probably mentioned I believe last time. Our earnings call. Now we're seeing a couple of thousands. So this is a great opportunity for us to go re engage with partners that haven't done business with us that are what we call dormant customers.

We have thousands of those also. So those are

just a couple of metrics that we look at. And then you heard me talk about intelligent digital assistant and what we've done to drive leverage both from an OpEx perspective and a revenue standpoint both of those which I mentioned in my prepared remarks were up double digit per head. I think you had a follow on question too.

Yes. I guess the follow-up is, I'm going to allude cloud into this also. So it sounds like, I mean, these aren't your words, but I think it sounded to me like xVantage was like maybe a couple of hundred million of incremental rev gen this quarter. And sort of correct me if that's like super off base. And then Cloud at 15% of gross profit dollars, 1 percent of net sales.

Can you frame for us the opportunity for like ex advantaging cloud to really repurpose the business model, right? Like if cloud is going to go to 2% of net sales at some point, like is that 15% to 30% of GP dollars, right? And so anyway, that's really the question. Like are we sitting on the beginnings of a totally repurposed business model and it's just not fully evident yet, but if you guys just keep doing what you're doing, we're going to look in like eight to 12 quarters and the business model is going to be really amplified. So just any thoughts there would be great.

Yes. And I think so I'll jump in and we're not going to disclose the numbers necessarily. What I would think about it in the future is that our company will be at Vantage. So we'll be talking about metrics of how we're driving share differentiation, better margin improvement, lower operating expense and overall bottom line return to the shareholder. And some of the things if you look at cloud, we spent $600,000,000 in cloud both organically and inorganically over the last twelve years and that's the foundation for Xvantage.

So we did start from the ground zero. And on top of those 30 patents pending the 32,000,000 lines of code that we put on top of that investment around cloud that I talked about in my opening comments. That's about a single experience. So you're able to come to Inger Micro and give it as I call a one stop shop or a single pane of glass where you go to our hardware, software services and cloud all in one system. So this in my opinion is broader than just cloud over time.

This is about consumption and how technology is going to be delivered to end businesses and how do we enable our solution providers use generically our customers 161,000 customers and they'll provide a better experience at a lower operating expense and effectively drive more revenue and a shorter sales cycle.

Got it. Got it. Okay. Thanks. That's very helpful context.

Your next question comes from Ruplu Vantacharya with Bank of America. Your line is open.

Hi. Thanks for taking my questions. Mike, if we look at the guide for fiscal 2Q at midpoint revenues will be up year on year, but gross margin will be down. It's an interesting year because you should have this year both growth in client devices as well as advanced solutions. So based on your current forecast and backlog, as you look into the second half, do you think gross margin can grow year on year or should we assume that it remains pressured from a year on year standpoint?

And then I'll ask my follow-up now as well. Can you talk about working capital? You said that you might do some pre buys. So how should we think about inventory and free cash flow as we go through the rest of this year? Thanks so much.

Okay. Thanks Ruplu. Good questions. I guess so I think we're as we said, we're really thinking about margin in the terms of mix, but beyond just the client and endpoint mix, which is maybe not assumed to grow as robustly as it did in Q4. We are still expecting in that model growth of Advanced Solutions and Cloud, which is higher profit business.

But I think what we do see more consistency with is still some of the concentrations towards the large customers and SMB being more muted as a whole. And therefore that tends to be lower margin mix. We're still also seeing more growth geographically towards our Asia Pacific region, is lower cost to serve, but also lower margin on the whole. So there's multiple factors that go into that. Clearly when you think about maybe the high end of our range, if we see growth coming in, but it's more concentrated towards Advanced Solutions.

We see SMB bouncing back absolutely. There is the potential you could see accretion in gross profit. But we're seeing more of the gross margin line stay roughly equivalent to where we were in Q1 from a historical perspective. I'll answer your second question and then can come back if there's anything I can clarify. But on the working capital front, yes, both in Q1 as well as in Q2, we are doing some pre buys with a number of different vendors where we see opportunistic opportunities to get ahead of potential price increases.

Now the way we usually handle this is a lot of it is bought early in the quarter and it's sold during the quarter. And that was largely true, but you can see a bit of a heightened inventory balance to close the quarter. We're pretty happy with the fact that working capital days and DIO in specifics was still improved year over year despite some of those pre buys It's still sitting on the balance sheet. And more importantly, we're working well with our vendors for support through the terms and conditions and you can see that come through in the payables. So where I would think about pre buys is we're going to continue to try and manage that as best we can and be opportunistic where opportunities exist.

But it could cause as I said in my prepared remarks, heightened inventory investment during the interim months of our quarters. And that's important only because let's say it's a few hundred million dollars that drives an interest costs and interest carrying costs. So you just need to think about the interest expense model that drives but it's with a very positive return overall.

The only other thing I would say this is Paul Mike mentioned it in his comments. We did do pre buys as we just mentioned but we also improved our working capital year over year by four days.

So we think we're making the smart right strategic buys and it's the right return.

Okay. Thanks for all the details. Really appreciate it. It's very helpful.

next question comes from Adam Tindle with Raymond James. Your line is open.

Ingram Micro Holding (INGM) Q1 2025 Earnings Call Transcript

Company Participants