Ingram Micro Holding shares fell sharply in U.S. trading as the market digested the company’s fiscal first-quarter 2026 report and its fiscal second-quarter 2026 outlook. While the company posted solid year-over-year growth and delivered non-GAAP EPS at the high end of its guide, investors focused on the forward outlook and cash-flow dynamics, pressuring the stock.

For Q1 FY2026 (ended March 28, 2026), Ingram Micro reported net sales of $14.0 billion (+13.7% year over year), GAAP EPS of $0.42, and non-GAAP diluted EPS of $0.75. For Q2 FY2026, the company guided net sales of $13.6 billion to $14.0 billion and non-GAAP diluted EPS of $0.68 to $0.78, framing growth but signaling a more moderated trajectory versus recent results.

The report highlighted a steep cash use in the quarter, with cash used in operations of $977.9 million and adjusted free cash flow of negative $962.3 million, which the company tied to working-capital investment supporting growth and a comparison against an unusually low working-capital level exiting fiscal 2025. The company also noted gross margin pressure from sales mix, including a shift toward lower-margin AI-infrastructure products, which contributed to a year-over-year gross margin decline (6.63% vs. 6.75%).

Ingram Micro increased its quarterly dividend to $0.084 per share and said it expanded authorized share-repurchase capacity to make $100 million available for future use, following a March secondary offering and a repurchase of shares from its majority owner. Next catalysts include whether demand and margins hold up amid component constraints and whether working-capital and free-cash-flow trends normalize over the next one to two quarters, as management indicated.