Insight Enterprises (NSIT) Stock Forecast & Price Target

Insight Enterprises Inc. demonstrated a robust financial performance, with a 9% year-over-year increase in gross profit on a reported basis, reflecting strong demand for its services and solutions. Additionally, total gross margins showed improvement, rising from 21.2% to 23.4% year-over-year, while services gross margins significantly increased from 60.3% to 63.4% in the fourth quarter of 2025. The growth in services gross profit, particularly a 7% increase in cloud gross profit driven by software-as-a-service and infrastructure-as-a-service offerings, underscores the company’s successful adaptation to market demands and a positive outlook for continued profitability.

Insight Enterprises Inc. is experiencing stagnation in its financial performance, as evidenced by flat gross profit year-over-year and a sequential decline of 2%, highlighting challenges in revenue generation. The company also reported a decrease in product gross margins from 11.1% to 10.9%, primarily driven by a notable 18% year-over-year decline in on-premises software net revenue and a 5% decrease in hardware gross profit due to pricing and mix changes. Additionally, the updated financial guidance for 2025 indicates a downward revision in gross profit expectations and non-GAAP EPS, reflecting management's concerns about the company’s growth trajectory moving forward.