Some 75% of Ingram Micro’s revenues now flow through its Xvantage in the countries where it is live, its CEO revealed as he heaped praise on the platform amid its market-busting Q2 results.
The world’s second-largest IT distributor last night posted net sales of $14.5bn for the three months to 27 June 2026, up 13.6% year on year and above its $13.6bn-$14bn guidance.
Non-GAAP net income more than matched this, swelling 34% to $191.4m.
The results follow market-busting numbers from global peer TD Synnex and pan-European rival ALSO (see here and here).
Xvantage X Factor
On an earnings call, CEO Paul Bay chalked up the record results partly to “continued momentum with Xvantage”, which launched in 2022 and is now live in 22 countries.
Bay reeled off a whole load of facts and figures on the digital platform, which the distributor has in the past painted as a B2B parallel of Netflix.
Time spent on Xvantage rose by around 40% year-over-year during the quarter, with average order value increasing 12% and average revenue per customer growing 23%, he said.
Xvantage’s Intelligent Digital Assistant (IDA) generated around $1bn in net revenue in Q2, putting it “ahead of pace” towards its goal of double-digit revenue contribution by the end of the year, Bay added.
Xvantage is “part of the driver” behind Ingram’s improving margins, CFO Michael Zilis added.
“In the countries that we have substantially more functionality of Xvantage deployed, the vast majority of their activity is going through Xvantage now,” Bay said on the call, a transcript of which can be found here.
“Xvantage is really serving the whole of the business. It’s not necessarily only serving pieces of it.
“Things like IDA… are allowing us also to calibrate our sales force through machine learning towards the higher-profit opportunities, where a rebate and other structure’s going to potentially be beneficial.”
“Overachievement”
Addressing Ingram’s “overachievement” during the quarter, Zilis and Bay said various factors related to supply constraints – including ASP hikes and order “pull forward” – had a 3% net benefit on its top line.
Cloud and GPU and infrastructure growth was another factor, Zilis added.
Ingram’s Advanced Solutions and Client & Endpoint Solutions businesses’ net revenues grew by 13% and 12% during the quarter in FX-neutral terms, respectively.
There is “still room to run” on Windows 11 PC refresh, Zilis claimed.
AI PCs accounted for more than 30% of its PC revenue in Q2, he stressed.
“We continue to see solid demand, which would suggest that there’s an extended cycle still with the PC refresh right now,” he concluded.
