0001897762-26-000006
SEC filingStrong revenue growth driven by AI-infrastructure demand, but gross margin compression and heavy working capital investment weighed on cash flow.
Revenue increased 13.7% to $14.0 billion for the thirteen weeks ended March 28, 2026, compared to $12.3 billion in the prior year period. The growth was driven by strong demand in our Advanced Solutions offerings, particularly GPU and AI-infrastructure products, as well as continued momentum in cloud-based solutions.
Operating income increased 11.0% to $222.9 million, with operating margin declining slightly to 1.6% from 1.6% in the prior year. Net income surged 42.9% to $98.9 million, or $0.42 per diluted share, compared to $69.2 million, or $0.29 per diluted share, in the prior year period. The significant increase in net income was aided by lower interest expense and favorable foreign exchange impacts, partially offset by higher SG&A expenses as we continue to invest in growth initiatives.
Net cash used in operating activities was $977.9 million in the current period, compared to $200.4 million used in the prior year period. The increase in cash used was driven by higher working capital requirements to support the strong sales growth, particularly in accounts receivable and inventory. Capital expenditures were $36.3 million, resulting in negative free cash flow of $1.0 billion. We maintain a strong focus on working capital management to maximize returns on investment and cash provided by operations.
We continue to prioritize investments in growth initiatives and working capital management. Looking ahead, we expect competitive pricing pressures and restrictive vendor terms and conditions to persist. We have funded, and expect to continue to fund, increases in interest expense from rising rates through cash flows from operations. Our balance sheet remains positioned to support our strategic objectives.