Icon Group Reports 52.5% Surge in Q3 Net Profit to 13.1 Million Shekels
Icon Group reported a 52.5% surge in Q3 2026 net profit to 13.1 million shekels amid strong distribution growth driven by rising demand for AI-compatible hardware.
Icon Group, the owner of the iDigital retail chain and the official distributor of Apple products in Israel, released its financial results for the third quarter of 2026, reporting a 52.5% surge in net profit alongside strong revenue growth.
The company posted a net profit of approximately 13.1 million shekels, marking a significant increase compared to 8.6 million shekels in the same period last year. This represents the highest third-quarter profit recorded by the company in the past five years.
Revenue Growth and Distribution Expansion
Group revenues for the quarter totaled approximately 433.2 million shekels, representing a 13.2% increase compared to 382.8 million shekels in the third quarter of 2025. This growth was primarily driven by the expansion of distribution operations, which include the sale of computers, servers, and peripherals from leading manufacturers such as Apple, Lenovo, ASUS, HPE, and Check Point Software Technologies.
Management highlighted that the growing demand for advanced computers, fueled by the rapid expansion of artificial intelligence applications, served as a major growth engine. AI tools require higher processing capabilities, encouraging consumers and businesses alike to upgrade their computing systems.
At the same time, the strengthening of the shekel against the US dollar negatively impacted reported revenues. According to the company, had it not been for the declining exchange rate, revenues would have been approximately 35.8 million shekels higher.
Retail Improvement and Potential Acquisition
The iDigital retail chain also reported improved profitability, with operating profit in the retail segment jumping by 37.9% to approximately 8.6 million shekels, partly due to increased sales of accessories under the private brand iConic. However, segment revenues remained relatively stable at approximately 116.1 million shekels.
On a group level, operating profit surged by 58.7% to 23 million shekels, while gross profit increased by 34.7% to 54 million shekels. For the first nine months of the year, group revenues reached approximately 1.29 billion shekels, and net profit jumped 68% to 35.4 million shekels. The board of directors declared a dividend distribution of 10 million shekels, bringing total dividends distributed since the beginning of the year to 30 million shekels.
These strong financial results come against the backdrop of potential acquisition talks. Reports recently surfaced indicating that Cellcom Israel is conducting preliminary negotiations to acquire a controlling stake in Icon Group from Sky Fund, which reportedly seeks a valuation of approximately 500 million shekels, compared to a market cap of around 370 million shekels at the time of the reports.
