IT solutions integrator Insight Enterprises (NASDAQ:NSIT) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 14.7% year on year to $2.40 billion. Its non-GAAP profit of $3.86 per share was 31.8% above analysts’ consensus estimates.
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Insight Enterprises (NSIT) Q2 CY2026 Highlights:
- Revenue: $2.40 billion vs analyst estimates of $2.17 billion (14.7% year-on-year growth, 10.5% beat)
- Adjusted EPS: $3.86 vs analyst estimates of $2.93 (31.8% beat)
- Adjusted EBITDA: $190.4 million vs analyst estimates of $150.3 million (7.9% margin, 26.7% beat)
- Management raised its full-year Adjusted EPS guidance to $12.45 at the midpoint, a 10.7% increase
- Operating Margin: 5.5%, up from 4.1% in the same quarter last year
- Free Cash Flow was -$20.1 million compared to -$181.9 million in the same quarter last year
- Market Capitalization: $4.24 billion
Company Overview
With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ:NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $8.58 billion in revenue over the past 12 months, Insight Enterprises is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s challenging to maintain high growth rates when you’ve already captured a large portion of the addressable market. To accelerate sales, Insight Enterprises likely needs to optimize its pricing or lean into new offerings and international expansion.
As you can see below, Insight Enterprises struggled to increase demand as its $8.58 billion of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a poor baseline 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. Insight Enterprises’s recent performance shows its demand remained suppressed as its revenue has declined by 2.6% annually over the last two years. 
This quarter, Insight Enterprises reported year-on-year revenue growth of 14.7%, and its $2.40 billion of revenue exceeded Wall Street’s estimates by 10.5%.
Looking ahead, sell-side analysts expect revenue to decline by 2.3% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not accelerate its top-line performance yet.
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Adjusted Operating Margin
Adjusted 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. It also removes various one-time costs to paint a better picture of normalized profits.
Insight Enterprises was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 5.3% was weak for a business services business.
On the plus side, Insight Enterprises’s adjusted operating margin rose by 2.4 percentage points over the last five years.
This quarter, Insight Enterprises generated an adjusted operating margin profit margin of 5.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Insight Enterprises’s EPS grew at 13.8% compounded annual growth rate over the last five years, higher than its flat revenue. This tells us management responded to softer demand by adapting its cost structure.
Diving into Insight Enterprises’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Insight Enterprises’s adjusted operating margin was flat this quarter but expanded by 2.4 percentage points over the last five years. On top of that, its share count shrank by 18.7%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For Insight Enterprises, its two-year annual EPS growth of 9.2% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q2, Insight Enterprises reported adjusted EPS of $3.86, up from $2.45 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Insight Enterprises’s full-year EPS to shrink by 4.9% from $12.13 to $11.53.
Key Takeaways from Insight Enterprises’s Q2 Results
It was good to see Insight Enterprises beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 2.4% to $143.62 immediately following the results.
Insight Enterprises may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).