ePlus inc. Q2 2027 Earnings Recap

ePlus shares rose 11.7% after earnings, as the company raised fiscal 2027 guidance on first-half performance and reported growth across sales and profitability. Higher guidance and nearly $750 million of year-over-year growth in open orders were key positives, though the transcript also points to concentration in fast-growing data center and cloud demand.

Key Takeaways

• Net sales rose nearly 10% year over year; gross profit increased 11.2%, and operating income grew 15.8%.
• Management raised fiscal 2027 guidance to upper-single-digit growth in net sales and gross profit, with adjusted EBITDA growth in the low double digits.
• Product net sales increased 12.8% to $547.1 million, while data center and cloud net sales grew 39.2%; security product net sales rose 10.3%.
• Open orders were up nearly $750 million year over year, led by data center and cloud, with additional growth in networking and security.
• Cash was $381 million at quarter-end; the company acquired Daymark Solutions during the quarter.