Ingram Micro Q3 Revenue Hits Record $15.22B on AI Demand, Gross Margin Slips to 6.55%

Ingram Micro's (INGM-US) latest-quarter revenue rose 20.8% year over year to a record $15.22 billion, prompting the IT distributor to raise its fourth-quarter and full-year outlook. GPU and AI infrastructure transactions exceeded $1.8 billion, up nearly 160%, but their lower margins weighed on overall profitability. Gross profit grew 14.6% to $997 million, while gross margin fell 0.35 percentage points to 6.55%. Asia-Pacific margin was 4.45%, below the 7.39% combined elsewhere. Adjusted operating income rose 25% to $322 million, with operating margin up 0.07 points to 2.12%. Non-GAAP EPS was $0.91, up 26% and $0.09 above guidance, and adjusted free cash flow swung to an inflow of $250 million from an outflow of $110 million. For the fourth quarter, Ingram Micro forecasts revenue of $17.5 billion to $17.9 billion, implying about 19% growth at the midpoint, and gross profit of $1.08 billion to $1.12 billion, up roughly 13%. Non-GAAP EPS is guided at $1.05 to $1.15. Management said supply constraints added a net 2% to 3% to current-quarter revenue and are expected to have a similar effect in the fourth quarter, while Middle East conflict trimmed EPS by about $0.01, with a $0.01 to $0.02 impact expected next quarter.