Q4 net sales: $5.5B, up 5% YoY (CEO); gross profit $1.25B, up 9% (CEO); non-GAAP OI $503M, up 1% (CEO); non-GAAP EPS $2.57, up 4% (CEO).
FY2025 net sales: >$22B, up 7% (CEO); gross profit ~$5B, up 6% (CEO); non-GAAP OI ~$2B, up 3% (CEO); record non-GAAP EPS $10.02, up 5% (CEO).
FY2025 adjusted FCF: $1.09B, converting 82% of non-GAAP net income (CFO); returned ~$1B to shareholders via dividends and buybacks (CEO).
Q4 gross margin: 22.8%, up 50bp YoY, up 90bp QoQ (CFO); netted-down revenues = 36.1% of gross profit (CFO).
Segment Q4 net sales growth: Corporate –1%, Small Business +18%, Healthcare +5%, Government +4% (state & local double-digit offsetting federal decline), Education +13% (CEO); International (UK/Canada) high-single-digit (CEO).
Portfolio Q4 growth: Cloud revenue & gross profit “strong double-digit” (CEO); Professional & managed services top line double-digit (CEO); Software +12% (CEO); Security single-digit (CEO); Hardware +2% (driven by notebooks, servers offset by storage) (CEO); Client devices high-single-digit (CEO).
Q4 memory pull-forward: ~$50M in net sales from price/supply concerns, “minor” impact (CFO).
FY2026 guidance: US IT market growth low-single-digit; target outperformance of 200–300bp (CEO/CFO); gross profit growth low-single-digit (CFO); gross margin slightly higher than 2025 (CFO); non-GAAP EPS growth mid-single-digit YoY (CFO); currency neutral (CFO).
Q1 2026 guidance: Gross profit mid-single-digit YoY growth, down mid-single-digit sequentially (CFO); operating expenses down YoY on dollar basis (CFO); non-GAAP EPS up mid-single-digit YoY (CFO); federal channel slow start due to pipeline rebuild after shutdown (CFO).
Mgmt Quotes
“The team delivered a strong finish to a complex year, and fourth quarter results exceeded our expectations.” – CEO
“Cloud remains a major engine of performance contributing roughly half of the quarter’s gross profit growth.” – CEO
“We are operating in a complex yet exciting time. With our full court press on strategy and team with proven execution, we are well-positioned to capture share…” – CEO
“Our first capital priority is to increase the dividend in line with non-GAAP net income growth.” – CFO
“For 2026, we are maintaining our target to return 50% to 75% of adjusted free cash flow to shareholders via the dividend and share repurchases.” – CFO
Prepared Metrics
Metric
Value
Speaker/Context
Q4 Net Sales
$5.5B, +5% YoY
CEO
Q4 Gross Profit
$1.25B, +9% YoY
CEO
Q4 Non-GAAP OI
$503M, +1% YoY
CEO
Q4 Non-GAAP EPS
$2.57, +4% YoY
CEO
Q4 Gross Margin
22.8%, +50bp YoY
CFO
FY2025 Net Sales
>$22B, +7% YoY
CEO
FY2025 Gross Profit
~$5B, +6% YoY
CEO
FY2025 Non-GAAP OI
~$2B, +3% YoY
CEO
FY2025 Non-GAAP EPS
$10.02 (record), +5% YoY
CEO
FY2025 Adjusted FCF
$1.09B, 82% of non-GAAP net income
CFO
FY2025 Gross Margin
21.7%
CFO
Net Leverage (Q4 end)
2.4x
CFO
Q4 Memory Pull-Forward
~$50M net sales
CFO
FY2026 GP Growth
Low single digits
CFO
FY2026 Non-GAAP EPS Growth
Mid single digits
CFO
Q1 2026 GP Growth
Mid-single-digit YoY, down mid-single-digit sequential
Topic: Memory industry price increases and supply chain impact on demand
Key points:
Price increases are fluid, varying greatly by OEM partner and product generation, observed week-to-week and month-to-month.
No significant supply chain roadblocks currently; robust customer demand and plenty of written demand in Q1 and Q2.
Visibility is greatest for Q1 and to a lesser degree Q2; second-half visibility is less, where supply chain challenges could start to play out.
Price increase magnitude varies: small single digits in some cases, a bit more in others, with potential escalation in some cases.
Mgmt stance: Neutral — management acknowledges fluidity and potential second-half dampening, but expresses confidence in navigating challenges, calling it their "sweet spot" for adding value.