ePlus inc. Earnings Recaps
Q4 2026
May 30, 2026
Shares dropped 8.0% following the release as investors reacted to cautious commentary on service segment growth and margin pressure, despite strong product sales and overall revenue gains.
Key takeaways
- Product segment sales grew 25% YoY in Q4 and 24% for the full year, driven by demand in data center, cloud, networking, and security.
- Services revenue rose only 5% in Q4, weighed down by professional services project delays and elongation, contrasting with stronger full-year growth of 16%.
- Professional services grew just 2% in Q4 due to timing challenges in retail, diluting segment momentum despite 19% growth for the full year aided by Bailiwick Services acquisition.
- Full-year service margins were modestly lower, impacted by the different margin profile of Bailiwick compared to legacy services.
- The company highlighted potential headwinds including chip shortages and geopolitical risks, signaling a cautious outlook despite robust demand in AI and digital transformation.
Q3 2026
Feb 5, 2026
ePlus reported a robust 24.6% increase in net sales to $615 million for Q3 2026, driven by strong demand in AI, cloud, and security sectors, alongside significant improvements in profitability.
Key takeaways
- Net earnings surged 129.3% to $33.4 million, with adjusted EBITDA rising 97% to $53.4 million, showcasing effective operational execution.
- Product sales grew 32.2% year-over-year, particularly boosted by infrastructure modernization driven by AI initiatives.
- The company approved a quarterly dividend of $0.25 per share and repurchased over 200,000 shares, demonstrating capital return strategies.
- Continued growth anticipated in security gross billings, up 16.4% year-over-year, as customers prioritize cybersecurity amidst rising threat levels.
- ePlus remains well positioned for future growth, leveraging its strong balance sheet for strategic investments and acquisition opportunities in high-demand areas.