Insight Enterprises (NSIT) investor relations material

Strategic overview and three-year plan

• Launched the One Insight plan, focusing on growth in AI infrastructure and AI services, operational efficiency, and talent strategy.

• Prioritizing organic growth and integration of recent acquisitions, especially in AI, while pausing M&A to focus on internal improvements.

• Targeting operational expense leverage reduction from 67% to the low 60s over the next three years, with more details to be shared at an upcoming Investor Day.

• Emphasizing a differentiated culture to attract and retain AI talent, with strong client and teammate satisfaction scores.

Market trends and business performance

• Strong Q1 and Q2 performance, with gross profit up 18% last quarter and guidance raised to high single or double-digit growth for the year.

• Infrastructure business benefits from rising server prices and ongoing data center modernization, while device growth is driven by price increases amid declining unit volumes.

• Cloud business grew 39% in Q2, with continued demand for hybrid cloud and on-prem solutions as clients seek to balance cost and control.

• Memory prices and supply chain dynamics are stabilizing, but cost pressures and lead times remain elevated.

AI adoption and client challenges

• Most mid-market clients are early in AI adoption, with deployments focused on point solutions rather than full process transformation.

• Companies face challenges in governance, business case rigor, and managing token economics for AI agents.

• Internal use of AI, such as automating accounts payable, demonstrates potential for over 90% process automation and significant ROI when approached end-to-end.

• Clients are increasingly weighing trade-offs between agent costs and payroll, highlighting the need for better management of AI deployments.