PLUS

Interested in ePlus inc.? Here are five stocks we like better. Revenue rose modestly, but profitability declined: Fiscal Q1 2027 net sales increased 1% to $649.1 million, while operating income, net earnings and adjusted EBITDA fell year over year amid tougher comparisons and lower gross margins. ePlus maintained its full-year guidance. Bookings and open orders surged on AI infrastructure demand: Open orders exceeded $1.5 billion, up more than $650 million from a year earlier, driven by AI-related networking and data-center projects. Management expects much of the backlog to convert into revenue over time, particularly in the second half of the fiscal year. Security and managed services remain strategic growth areas: Security gross billings grew 15.6%, while managed services revenue surpassed $50 million and increased more than 15%, led by cloud and data-center offerings. ePlus also repurchased $20.8 million of stock and authorized a new plan for up to 1.5 million shares. ePlus (NASDAQ:PLUS) reported fiscal first-quarter 2027 results that reflected modest revenue growth against a difficult prior-year comparison, while bookings and open orders increased substantially amid demand for artificial intelligence infrastructure, security, cloud and managed services. Chief Executive Officer and President Mark Marron said the prior-year quarter had benefited from the timing of several large enterprise orders, making comparisons more challenging. Despite that backdrop, he said demand was healthy across the business, particularly among mid-market customers, and the company maintained its fiscal 2027 guidance. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We are encouraged by the current level of bookings and open orders, which are up significantly as we move through the remainder of the year,” Marron said. First-quarter consolidated net sales rose 1% year over year to $649.1 million, while gross billings increased 0.5% to $957.1 million. Product revenue increased 0.6% to $529.7 million, supported by security and networking demand, according to Chief Financial Officer Elaine Marion. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Services revenue increased 2.6% to $119.4 million. Managed services revenue surpassed $50 million for the first time and grew more than 15% from the prior-year period, driven primarily by cloud and data center services. Professional services revenue, however, declined 5.1% to $68.1 million as certain projects were delayed. Gross profit totaled $151.3 million, compared with a gross margin of 23.3%, down from 23.9% a year earlier. Marion attributed the margin changes to shifts in product and service mix, including a lower proportion of third-party maintenance and subscription sales. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Operating income declined to $38.8 million from $42.9 million in the prior-year quarter. Net earnings from continuing operations were $30.3 million, or $1.16 per diluted share, compared with $32 million, or $1.21 per diluted share, a year earlier. Non-GAAP diluted earnings per share from continuing operations were $1.28, down from $1.41. Adjusted EBITDA was $47.8 million, compared with $52.7 million in the prior-year quarter. Chief Operating Officer and President of ePlus Technology Darren Raiguel said open orders were more than $1.5 billion at quarter-end, up more than $650 million from a year earlier. He said the balance had increased further by the time of the earnings call. While a portion of open orders consists of ratable subscriptions, Raiguel said most of the balance will convert over time, with some expected to be recognized during the second half of the fiscal year. Raiguel said the company has booked large AI-linked modern network infrastructure and data center wins in financial services, telecommunications, service providers and neocloud customers. Those wins will take time to convert into revenue, he said, but demonstrate ePlus’ ability to help clients design and provide infrastructure supporting future AI investments. “AI-related demand for infrastructure is robust with a strong pipeline,” Raiguel said. The company also cited customer interest in services-oriented offerings including agentic AI and Memory-as-a-Service. Marron highlighted a self-contained agentic AI platform developed with Cisco and NVIDIA. The company said the platform is intended to create a more secure AI infrastructure, reduce human interaction required for diagnosis and remediation, accelerate incident response and shift IT and security teams toward more autonomous operations. Security gross billings increased 15.6% during the quarter. Security represented 24.2% of gross billings on a trailing 12-month basis, Marion said. The company also completed multiple multi-year enterprise software licensing agreements in security worth several million dollars or more during the period. Raiguel said security demand has been less affected by product availability constraints because of the category’s software mix. He described current customer activity as centered on “security for AI and AI for security.” Managed services growth was led by data center and cloud offerings, while the company also cited demand for enhanced maintenance and support, managed backup and disaster recovery services. Raiguel said a multimillion-dollar booking during the quarter reflected customers selecting ePlus’ higher-touch, U.S.-based support offering at roughly the same price as a vendor-partner alternative. The company said professional-services projects were slowed by product delivery delays. During the question-and-answer session, Raiguel said previously discussed retail project delays were specific to those customers rather than a broader demand signal. ePlus ended the quarter with $448.9 million in cash, up from $410.8 million at the end of fiscal 2026. Inventory declined by $54.9 million to $146 million as projects were completed, contributing to a 10-day sequential improvement in the cash conversion cycle to 41 days. During the quarter, ePlus repurchased about 251,000 shares for $20.8 million. The board authorized a new repurchase plan for up to 1.5 million shares over a 12-month period beginning Aug. 11, 2026. The company also declared a quarterly dividend of $0.27 per common share, payable Sept. 16, 2026, to shareholders of record on Aug. 25, 2026. Marron said ePlus intends to continue investing in organic growth, evaluating strategic acquisitions and returning capital through dividends and share repurchases. He also said the company continues to monitor potential headwinds, including the worldwide memory chip shortage and geopolitical issues. ePlus Inc (NASDAQ:PLUS) is a technology solutions provider that helps enterprises and public-sector organizations maximize the value of their information technology investments. The company specializes in designing, implementing and managing complex IT infrastructures, with a focus on security, cloud computing, data center modernization and unified communications. By combining consulting services with software license management and hardware procurement, ePlus delivers end-to-end solutions that align with its clients' strategic objectives. The company's offerings include cybersecurity assessments and managed security services, hybrid and public cloud deployments, network architecture and optimization, and collaboration platforms. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ePlus Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

In early August 2026, ePlus inc. reported first-quarter fiscal 2027 results showing lower net income of US$30.28 million year on year, reiterated mid-single-digit growth guidance for the full year, and confirmed a US$0.27 quarterly dividend alongside an expanded share repurchase authorization. Management also asked shareholders to approve an increase in authorized common shares to 75,000,000, aiming to give the company more flexibility to fund future business and financial initiatives. Next, we’ll examine how reaffirmed mid-single-digit growth guidance amid strong managed services momentum influences ePlus’s existing investment narrative. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. To own ePlus, you need to believe its focus on AI infrastructure, security, cloud, and expanding managed services can offset lumpy, project-driven hardware demand and tighter margins. The latest quarter’s lower net income, alongside reiterated mid single digit growth guidance, suggests the near term growth catalyst remains intact, while the biggest risk is still revenue and margin volatility if large deals slow. For now, this earnings release does not materially change that balance. The most relevant announcement here is ePlus’s reaffirmed fiscal 2027 outlook for mid single digit growth in net sales and gross profit. Paired with managed services revenue surpassing US$50 million in the quarter, this supports the narrative that recurring and services driven streams are becoming more important, potentially helping to smooth some of the project specific swings that have worried investors. Yet while guidance holds steady, investors should still be aware of how dependent near term results remain on large, uneven enterprise projects and ... Read the full narrative on ePlus (it's free!) ePlus' narrative projects $2.8 billion revenue and $136.4 million earnings by 2029. This requires 5.0% yearly revenue growth and about a $12 million earnings increase from $124.1 million today. Uncover how ePlus' forecasts yield a $111.00 fair value, a 17% upside to its current price. Two fair value estimates from the Simply Wall St Community span a wide range, from about US$58 to US$111 per share, showing how differently individual investors view ePlus. Set against ePlus’s reiterated mid single digit growth guidance and growing managed services contribution, this gap reminds you to compare several viewpoints before deciding how resilient you think the business really is. Explore 2 other fair value estimates on ePlus - why the stock might be worth 38% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your ePlus research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free ePlus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ePlus' overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Uncover the next big thing with 19 elite penny stocks that balance risk and reward. The future of work is here. Discover the 35 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Capitalize on the AI infrastructure supercycle with our selection of the 57 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PLUS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Net Sales: Consolidated net sales of $649.1 million, up 1% year-over-year. Gross Billings: $957.1 million, up 0.5% year-over-year. Product Revenue: $529.7 million, a 0.6% increase from the prior year. Services Revenue: $119.4 million, up 2.6% year-over-year. Managed Services Revenue: Surpassed $50 million for the first time, increasing over 15% year-over-year. Professional Services Revenue: $68.1 million, down 5.1% year-over-year. Gross Profit: $151.3 million, with a gross margin of 23.3%, down from 23.9% in the prior year. Operating Expenses: $112.5 million, up 1.6% year-over-year. Operating Income: $38.8 million, compared to $42.9 million in the prior year. Net Earnings: $30.3 million, or $1.16 per diluted share, compared to $32 million, or $1.21 per diluted share, in the prior year. Non-GAAP Net Earnings: $1.28 per diluted share versus $1.41 in the prior year. Adjusted EBITDA: $47.8 million, compared to $52.7 million in the prior year quarter. Cash Position: $448.9 million at quarter end, up from $410.8 million at the end of fiscal 2026. Inventory: Decreased $54.9 million to $146 million. Cash Conversion Cycle: Improved to 41 days, down 10 days sequentially. Share Repurchases: Repurchased approximately 251,000 shares for $20.8 million in the quarter. Dividend: Declared a dividend of $0.27 per common share. Warning! GuruFocus has detected 8 Warning Signs with PLUS. Is PLUS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bookings and open orders are up significantly, with open orders exceeding $1.5 billion, indicating strong future revenue potential. Managed services revenue surpassed $50 million for the first time, growing over 15% year-over-year, highlighting a growing recurring revenue base. Security gross billings increased 15.6% during the quarter, driven by strong customer demand and multiple multi-year enterprise software licensing agreements. The company is capitalizing on robust AI-related demand, with large wins in AI-linked network infrastructure and data center projects across multiple industries. ePlus maintains a strong balance sheet with $448.9 million in cash, enabling continued investment in organic growth, strategic M&A, and shareholder returns through dividends and share repurchases. Net sales growth was modest at 1% year-over-year, impacted by a difficult comparison from the prior year's large enterprise orders. Professional services net sales declined 5.1% due to project delays, partly caused by product delivery delays. Gross margin decreased to 23.3% from 23.9%, with declines in product, managed services, and professional services margins due to mix shifts. Operating income and adjusted EBITDA declined year-over-year, reflecting higher operating expenses from investments in customer-facing roles and professional fees. The company faces potential headwinds from the worldwide memory chip shortage and geopolitical issues, which could impact product availability and costs. Q: The $650 million of open orders that you mentioned in the quarter, what was that up on a percentage basis. And what's your view on the timing of when some of this backlog gets converted into revenue?A: Darren Raiguel (COO & President of ePlus Technology): Total open orders were above $1.5 billion at the end of the quarter and have increased further since then. While a portion is ratable subscriptions, the large majority is not, and it will take time to flush through. We expect to see some of this conversion in the back half of the fiscal year, with the remainder flowing through over time beyond that. Q: Can you talk about maybe what would drive an acceleration in gross profit or adjusted EBITDA over the course of the year to get you to the full year levels that we expect and maybe what areas are going to carry the greatest risk to get there?A: Darren Raiguel (COO & President of ePlus Technology): The primary driver is top-line revenue growth, which will allow for greater operating leverage on volumes. Expanding services is the easiest way to drive gross profit growth. The company is maintaining its fiscal 2027 guidance, expecting growth to accelerate as the year progresses. Q: And are you seeing like increased activity like amongst your larger customers or maybe just your customers in general in terms of getting ahead of this if lead times are extending or are you seeing the pipeline still at a faster rate?A: Darren Raiguel (COO & President of ePlus Technology): We are seeing increased activity broadly across the customer base. While some large customers are accelerating purchases, the strength is widespread. Much of the activity is AI-related, but it is broad-based, which is a testament to the success of the company's strategy. Q: I guess maybe this leans on that a little bit, but last year was a very strong year in terms of large enterprise orders, creating some difficult comparisons. For this year, but what is your view on the maybe the pipeline of larger enterprise-type opportunities this year, similar to what you saw last year?A: Darren Raiguel (COO & President of ePlus Technology): The pipeline of large enterprise opportunities is very similar to last year. There is a lot of activity, including requests, quotes, and RFPs, with many large opportunities available. The key is converting these opportunities, and the company saw some of that success in the quarter. Q: You discussed in the past there were some retail project delays. Are those moving forward and do you think this is a timing issue or a demand signal?A: Darren Raiguel (COO & President of ePlus Technology): The retail project delays are still going to take a bit more time. The company is actively working with those customers, but they are large customers, and it will likely take a while longer before seeing the fruits of that labor. Q: And are those more broad demand takeaways or are they sort of idiosyncratic to those customers?A: Darren Raiguel (COO & President of ePlus Technology): The delays are specific to those customers in general, rather than reflecting a broad demand signal. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Managed Services Delivers Strong Performance and Increases Recurring Revenue ~ Reiterates Fiscal 2027 Guidance ~ First Quarter of Fiscal Year 2027 Net sales increased 1.0% to $649.1 million; services revenues increased 2.6% to $119.4 million. Gross billings increased 0.5% to $957.1 million. Gross profit decreased 1.5% to $151.3 million. Gross profit margin was 23.3%, compared to 23.9% for last fiscal year's first quarter. Net earnings from continuing operations decreased 5.4% to $30.3 million. Adjusted EBITDA decreased 9.2% to $47.8 million. Net earnings from continuing operations per common share-diluted decreased 4.1% to $1.16. Non-GAAP: net earnings from continuing operations per common share - diluted decreased 9.2% to $1.28. HERNDON, Va., Aug. 4, 2026 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months ended June 30, 2026, or the first quarter of its 2027 fiscal year. Management Comment "The first quarter reflected strong execution against a challenging year over year comparison. We had record sales and saw a significant increase in booked and open orders which we believe positions us for a strong second half. During the quarter, we saw product shipment delays and lead times extended by the ongoing memory chip shortage." commented Mark Marron, President and CEO of ePlus. "We continued to see strong growth in security, managed services, and within our mid-market customer base overall. Managed services delivered its first $50 million revenue quarter and provides a reliable revenue stream which affirms our services-led, value-add approach for customers." "We ended the quarter with $449 million of cash on our balance sheet. This strong cash position provides us with the financial flexibility to continue investing in our business, pursue M&A and return value to shareholders via dividends and share repurchases. As we look ahead, we remain focused on executing our strategic priorities and are confident in our ability to deliver sustainable long-term value for our shareholders." First Quarter Fiscal Year 2027 Results For the first quarter ended June 30, 2026, as compared to the first quarter ended June 30, 2025: Net sales increased 1.0% to $649.1 million, from $642.8 million due to higher product sales and higher service revenue. Gross billings increased 0.5% to $957.1 million from $952.8 million. Product segment sales increased 0.6% to $529.6 million from $526.4 million due to increases in revenue from networking, security, and collaboration products, offset by a decrease in cloud products. Product segment gross profit margin was 21.0%, down from 21.3% last year due to a shift in product mix and a lower proportion of sales that were sales of third-party maintenance and subscriptions which are recorded on a net basis. Professional services segment revenues decreased 5.1% year over year to $68.1 million from $71.7 million, primarily due to decreases in revenues from project services and staff augmentation. Gross profit margin from our professional services segment decreased to 36.9% from 39.2% during the same period last year due to a shift in services mix. Managed services segment revenue increased 15.1% to $51.3 million primarily due to additional revenue from cloud managed services. Gross profit from managed services increased 11.3% from last year due to the increase in revenue, offset by a decrease in gross profit margin from managed services to 29.4% from 30.4% in the prior year quarter. Gross profit decreased 1.5% to $151.3 million, from $153.7 million, due to a decrease in gross profit from the product segment and professional services segment, offset by an increase in the managed services segment. Gross profit margin was 23.3%, compared with 23.9% in the prior year quarter, due to lower gross profit margin in all three segments. Operating expenses were $112.5 million, up 1.6% from $110.7 million last year, primarily due to an increase in general and administrative expenses and salary and benefits. Operating income decreased 9.6% to $38.8 million. Other income, net was $3.1 million compared to $0.6 million in the prior year due to higher interest income and lower foreign currency transaction losses being recognized in the current year quarter. Earnings from continuing operations before taxes decreased 3.7% to $42.0 million. The effective tax rate for the current quarter was 27.8%, which was higher than the prior year quarter of 26.5% due to higher state income taxes and non-deductible expenses. Net earnings from continuing operations decreased 5.4% to $30.3 million from $32.0 million in the prior year quarter. Adjusted EBITDA decreased 9.2% to $47.8 million from $52.7 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $1.16, compared with $1.21 in the prior year quarter. Non-GAAP net earnings from continuing operations per common share - diluted was $1.28, compared with $1.41 in the prior year quarter. Total shares outstanding were 26.1 million and 26.3 million on June 30, 2026 and March 31, 2026, respectively. Net earnings were $30.3 million as compared to $42.6 million in the prior year quarter, which included $10.6 million from discontinued operations. Net earnings from discontinued operations per common share - diluted for the three months ended June 30, 2025, was $0.40. There were no transactions for discontinued operations for the three months ended June 30, 2026. Balance Sheet Highlights As of June 30, 2026, cash and cash equivalents were $448.9 million, up from $410.8 million as of March 31, 2026. Inventory decreased 27.3% to $146.0 million as of June 30, 2026 compared with $200.9 million as of March 31, 2026 due to a reduction of projects in process. Accounts receivable—trade, net increased 14.8% to $746.0 million as of June 30, 2026 from $650.0 million as of March 31, 2026. Total stockholders' equity was $1,072.0 million as of June 30, 2026, compared with $1,069.0 million as of March 31, 2026. Fiscal Year Guidance ePlus is reiterating its fiscal year 2027 guidance of year over year growth in the mid-single digits for net sales, gross profit and adjusted EBITDA. This guidance does not factor in recessionary conditions, or other unexpected developments. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition- or disposition-related expenses. These items are uncertain, depend on various factors, and could be material to ePlus' results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full fiscal year 2027 forecast. Summary and Outlook "Our customers operate in areas with strong expansion potential, and our growth is underscored by our close customer relationships as they look to us for help to expand their businesses, optimize internal efficiencies, and operate their IT securely. As technology investment continues to accelerate, we are well-positioned to capitalize on the significant long-term growth opportunities across artificial intelligence, data centers, cybersecurity and other mission-critical markets. Supported by our strong balance sheet and disciplined approach to capital allocation, we will continue investing in our capabilities, for both products and services, while executing on our strategy to deliver long-term sustainable growth and shareholder value. Reflecting our confidence in the business and the visibility into our open orders we have today, we are reaffirming our fiscal 2027 guidance," concluded Mr. Marron. ePlus Announces Quarterly Dividend ePlus announced today that its Board of Directors has declared a quarterly cash dividend of $0.27 per common share which will be paid on September 16, 2026, to shareholders of record as of the close of business on August 25, 2026. ePlus Announces New Stock Repurchase Program ePlus today announced that its Board of Directors has authorized ePlus to repurchase up to 1,500,000 shares of ePlus' outstanding common stock over a 12-month period commencing August 11, 2026. ePlus' current repurchase plan expires on August 10, 2026. The purchases under the new stock repurchase program may be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, if and when needed, for general corporate purposes. ePlus has no obligation to repurchase shares under the authorization, and the timing, actual number and value of the shares which are repurchased will be at the discretion of management and will depend on a number of factors, including the price of ePlus' common stock. ePlus may suspend or discontinue repurchases at any time. Recent Corporate Developments/Recognitions In the first quarter of its 2027 fiscal year, ePlus: Unveiled its Enterprise Grade Agentic AI Platform for Autonomous IT and Security Operations at Cisco Live Named Digital Realty Americas Partner of the Year in Recognition of AI Expertise Receives Dell Technologies North America Strategic Impact Partner of the Year Award Honored with North America Networking Partner of the Year Award from HPE Successfully Earns Place on CRN Solution Provider 500 List for 15 Consecutive Years Expands Managed Services Portfolio with Enhanced Maintenance Support for HPE ProLiant Servers Recognized as Services Partner of the Year at Everpure Annual Accelerate Partner Forum Surpassed Industry Benchmarks with Outstanding Net Promoter Score in Independent Survey Appointed John Lutz to Board of Directors Recognized on the Prestigious 2026 MES Midmarket 100 List Conference Call Information ePlus will hold a conference call and webcast at 4:30 p.m. ET on August 4, 2026: A replay of the call will be available approximately two hours after the call through August 11, 2026. About ePlus inc. ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and more than 2,170 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia‐Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email [email protected]. Connect with ePlus on LinkedIn, Facebook, and Instagram. ePlus, Where Technology Means More®. ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. Forward-looking statements Statements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, financial losses resulting from national and international political instability fostering uncertainty and volatility in the global economy including changes in interest rates, tariffs, inflation, export requirements applicable to products we sell, sanctions and exposure to foreign currency rate changes; supply chain issues, including a shortage of information technology ("IT") component parts and products, and our vendors' rapid and unpredictable price fluctuations relating thereto, or a customer's or vendor's cancellation of orders such as for, but not limited to, memory chips, which may increase our and the customer's costs, decrease gross profit, cause a delay in fulfilling or inability to fulfill customer orders, increase our need for working capital, delay the completion of professional services, or require the purchase of IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; risks relating to artificial intelligence ("AI"), including the use or capabilities of AI and emerging laws, rules and regulations related to AI; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), and AI which may affect our financial results; our ability to remain secure during a cybersecurity attack or other IT outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; a material decrease in the credit quality of our customer base, or a material increase in our credit losses; increases to our costs including wages and our ability to increase our prices to our customers as a result, or negative financial impacts due to the pricing arrangements we have with our customers; reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; the possibility of a reduction of vendor consideration provided to us; our inability to identify merger and acquisition candidates, perform sufficient due diligence prior to completing mergers and acquisitions, successfully complete merger and acquisition transactions (including on favorable terms), successfully integrate a completed merger and/or acquisition, identify an opportunity for, or successfully complete a business disposition, or achieve the operational and financial results we anticipate after a disposition; our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel with needed vendor certifications; inadequate design or maintenance of our IT platforms for internal use or solutions we offer to our customers or our inability to effectively and timely capitalize on the opportunities made available by the adoption of AI and not having adequate or competent IT personnel to support our business; cybersecurity attacks that may occur while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; our ability to raise capital, maintain or increase, as needed, our lines of credit with vendors or our floor plan facility, or the effect of those matters on our common stock price; our ability to predictably meet expectations of the investor and analyst community, including relative to our financial performance guidance that we provide, including based on our continuation of dividends and share repurchases; our ability to create and implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following mergers and acquisitions; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission. The declaration and payment of future dividends are subject to the sole discretion of our Board of Directors. All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law. Amounts presented for the three months ended June 30, 2025 reflect the correction of certain misstatements, which we determined are not material either individually or in the aggregate. See our Form 10-Q for the quarter ended June 30, 2026, including Note 2 to the Consolidated Financial Statements, for more information. ePlus inc. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP INFORMATION We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Non-GAAP: Net earnings from continuing operations and (iii) Non-GAAP Net earnings from continuing operations per common share - diluted. We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: depreciation and amortization, share-based compensation, provision for income taxes, and other (income), net. Non-GAAP: Net earnings from continuing operations and Non-GAAP Net earnings from continuing operations per common share – diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income), net, share-based compensation, acquisition related amortization expense, and the related tax effects. We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these financial measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results. Our use of non-GAAP information as analytical tools has limitations, and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share-diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures. The amounts in the tables below are results from our continuing operations (in thousands): (i) Reconciliation of Adjusted EBITDA (ii) Reconciliation of Non-GAAP: Net earnings from continuing operations (iii) Reconciliation of Non-GAAP: Net earnings from continuing operations per common share - diluted View original content to download multimedia:https://www.prnewswire.com/news-releases/eplus-reports-first-quarter-fiscal-year-2027-financial-results-302842913.html

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the it distribution & solutions industry, including ePlus (NASDAQ:PLUS) and its peers. IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement. The 8 IT distribution & solutions stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 6.7% while next quarter’s revenue guidance was 9.5% above. Luckily, IT distribution & solutions stocks have performed well with share prices up 15.5% on average since the latest earnings results. Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes. ePlus reported revenues of $581.6 million, up 21.7% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates. "In the fourth quarter, we achieved double digit growth across both net sales and gross billings, demonstrating expanding market share, and underscoring the durability and resilience of our business, " said Mark Marron, president and CEO of ePlus. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.2% since reporting and currently trades at $87.55. Is now the time to buy ePlus? Access our full analysis of the earnings results here, it’s free. Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions. TD SYNNEX reported revenues of $19.57 billion, up 31% year on year, outperforming analysts’ expectations by 16.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates. TD SYNNEX delivered the biggest analyst estimate beat of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 9.3% since reporting. It currently trades at $251.45. Is now the time to buy TD SYNNEX? Access our full analysis of the earnings results here, it’s free. With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ:NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology. Insight Enterprises reported revenues of $2.13 billion, up 1.2% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates. Insight Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth among its peers. Interestingly, the stock is up 73.6% since the results and currently trades at $119.78. Read our full analysis of Insight Enterprises’s results here. With a century-long history of adapting to technological evolution, Avnet (NASDAQ:AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components. Avnet reported revenues of $7.12 billion, up 33.9% year on year. This number surpassed analysts’ expectations by 10.3%. Overall, it was an incredible quarter as it also put up a solid beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations. Avnet achieved the highest guidance raise and fastest revenue growth in the group. The stock is up 10.1% since reporting and currently trades at $86.23. Read our full, actionable report on Avnet here, it’s free. Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers. ScanSource reported revenues of $766.8 million, up 8.8% year on year. This result beat analysts’ expectations by 6.1%. It was a strong quarter as it also logged a beat of analysts’ EPS estimates. The stock is up 31.9% since reporting and currently trades at $53.99. Read our full, actionable report on ScanSource here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

In late May and early June 2026, ePlus announced fiscal 2026 results showing higher revenue of US$2.44 billion and net income of US$132.64 million, introduced fiscal 2027 mid-single-digit growth guidance, declared a US$0.27 quarterly dividend, and rolled out new AI-focused infrastructure and AgenticOps offerings with partners including Cisco, NVIDIA, Digital Realty, Lenovo, and Splunk. By combining its Private AI Infrastructure Managed Service and the new AgenticOps platform with leading hardware, software, and colocation providers, ePlus is positioning itself as an end-to-end partner for enterprises seeking secure, autonomous AI operations under their own control. We will now examine how ePlus’s new AgenticOps collaboration with Cisco and NVIDIA intersects with mixed earnings and updated growth guidance. Find 46 companies with promising cash flow potential yet trading below their fair value. To own ePlus, you need to believe it can convert rising demand for AI infrastructure and security into durable, higher quality earnings, while keeping costs under control. The latest results and guidance confirm revenue and profit growth, but the market’s focus remains on margin pressure and whether investments in AI capabilities will offset rising operating expenses, which, for now, keeps profitability trends as the key near term catalyst and risk. The new AgenticOps platform launched with Cisco and NVIDIA is especially relevant here, because it directly targets complex, higher value AI and security operations where ePlus aims to deepen recurring services and managed offerings. If AgenticOps and the Private AI Infrastructure Managed Service gain traction together, they could help shift the mix toward more predictable, services led revenue that supports the company’s transition away from lumpier, project based sales. Yet, despite these AI offerings, investors should be aware that customer spending in a few concentrated sectors could still... Read the full narrative on ePlus (it's free!) ePlus’ narrative projects $2.8 billion revenue and $136.4 million earnings by 2029. Uncover how ePlus' forecasts yield a $111.00 fair value, a 37% upside to its current price. Two fair value estimates from the Simply Wall St Community span about US$66.64 to US$111, showing very different expectations for ePlus. Against this backdrop, the key question for you is whether its push into AI managed services can meaningfully reduce reliance on large, non repeatable enterprise projects, so it is worth examining several contrasting views before deciding how that might influence future performance. Explore 2 other fair value estimates on ePlus - why the stock might be worth 18% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your ePlus research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free ePlus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ePlus' overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Uncover the next big thing with 24 elite penny stocks that balance risk and reward. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PLUS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

ePlus’ first quarter results came in above Wall Street’s revenue and profit expectations, but the market reacted negatively, likely due to margin pressure and cautious commentary around future headwinds. Management attributed the strong top-line growth to broad-based demand across sectors—particularly for AI, cloud, data center, and security solutions. CEO Mark Marron noted that the company’s transition to a pure play technology solutions provider and the divestiture of its financing business helped focus resources on these high-growth areas. However, as COO Darren Raiguel highlighted, larger enterprise sales came at more competitive margins, and certain professional services projects experienced timing delays, impacting overall profitability. Is now the time to buy PLUS? Find out in our full research report (it’s free). Revenue: $581.6 million vs analyst estimates of $569.3 million (21.7% year-on-year growth, 2.2% beat) Adjusted EPS: $1 vs analyst estimates of $0.98 (2% beat) Adjusted EBITDA: $40.06 million vs analyst estimates of $41.85 million (6.9% margin, 4.3% miss) Operating Margin: 6.5%, up from 5.2% in the same quarter last year Market Capitalization: $2.08 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Maggie Nolan (William Blair) asked how ePlus balanced conservatism and ambition in its guidance given current headwinds. CEO Mark Marron explained guidance reflects both strong open orders and caution due to supply chain risks and global uncertainty. Maggie Nolan (William Blair) pressed about margin pressure from large enterprise deals and whether this is a structural change. COO Darren Raiguel responded that opportunities remain for margin expansion through service cross-selling and deeper relationships with large clients. Maggie Nolan (William Blair) inquired whether professional services revenue delays are temporary or indicative of broader demand softness. Management answered that most delays are project-specific and expects normalization as retail projects progress. Maggie Nolan (William Blair) sought clarification on how the company plans to offset ongoing margin pressure. Management emphasized increased focus on managed and professional services and leveraging AI internally for efficiency. Maggie Nolan (William Blair) asked about capital allocation priorities. CEO Mark Marron reiterated the importance of organic investment, selective M&A, and shareholder returns through dividends and buybacks. In the coming quarters, the StockStory team will focus on (1) trends in AI and cloud project bookings and whether delayed professional services projects materialize, (2) evidence of margin stabilization or recovery as service cross-selling ramps up, and (3) updates on how supply chain risks, such as the memory chip shortage, influence backlog conversion. Updates on capital allocation and new service offerings will also be indicators of execution. ePlus currently trades at $80.37, down from $88.65 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Release Date: May 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ePlus Inc (NASDAQ:PLUS) achieved double-digit growth across key revenue and operating metrics, with gross billings reaching a record $3.8 billion. The company experienced a 53% year-over-year increase in fully diluted EPS from continuing operations in the fourth quarter, and a 64% increase for the full year. ePlus Inc (NASDAQ:PLUS) broadened its core portfolio offerings by adding professional and managed services, enhancing its consultative services. The company divested its domestic financing business to focus on high-growth IT markets, allowing for better resource allocation. ePlus Inc (NASDAQ:PLUS) maintained a strong balance sheet with a cash balance of $411 million, enabling organic investments, acquisitions, and shareholder returns through dividends and share repurchases. The company faces potential headwinds from the worldwide memory chip shortage and geopolitical issues. There were project timing delays in professional services with retail customers, affecting revenue growth in the fourth quarter. Consolidated gross margin decreased to 24.6% from 26.5% in the prior year quarter, primarily due to lower product margins. The effective tax rate increased to 32.2% in the fourth quarter, up from 31.4% in the previous year, due to higher state income taxes and non-deductible expenses. Net loss from discontinued operations was $400,000 or $0.02 per share, compared to net income of $3.9 million or $0.15 per share in the prior year quarter. Warning! GuruFocus has detected 5 Warning Sign with PLUS. Is PLUS fairly valued? Test your thesis with our free DCF calculator. Q: Mark, you just gave the guidance there, and at the beginning of your prepared remarks, you said you were continuing to be mindful of potential headwinds. Could you expand a little bit on the framework for the guidance, what you factored in, where you're being conservative versus ambitious? A: Mark Marin, CEO: In terms of the guidance, there's a few things that we looked at. We had a really tough compare, as we were up over 20% on the top and almost 50% on the bottom. With the memory shortage and lead times, we are being a little conservative. Our open orders are up, which is a good sign, but dictated by lead times we don't control. Our AI strategy is starting to work, but we remain cautious due to the memory shortage and geopolitical unrest. Q: There was a comment about large enterprise sales coming in at competitive rates and the impact on margins. Is there an opportunity to expand margins at these large enterprises over time, or is this reflective of a more competitive environment? A: Darren Raguel, COO: There's plenty of opportunity for expansion. We talk about land and expand all the time, and we're seeing more opportunity as we provide value to larger enterprises and look at services as well. So, we're optimistic about margin expansion rather than seeing this as a continuing trend. Q: How are you managing the balance between AI initiatives and cost management priorities? A: Darren Raguel, COO: Customers remain disciplined in spending, balancing long-term AI initiatives with efficiency and cost management priorities. This validates our success in digital transformation, as evidenced by recent honors and our AI Experience Center, which supports infrastructure modernization and strategic guidance. Q: Can you elaborate on the impact of the divestiture of your domestic financing business on your business model? A: Elaine Marion, CFO: The divestiture simplified our business model, allowing us to focus on core technology growth areas. It also enabled us to initiate our first quarterly dividend, reinforcing our strong financial performance and commitment to returning capital to shareholders. Q: What are the key drivers of technology investment across your customer base? A: Darren Raguel, COO: AI is one of the biggest drivers of technology investment. Customers focus on how AI can improve productivity, streamline operations, and enhance customer engagement. We have a strong pipeline of customer requests to deliver these business outcomes, positioning us well to navigate the evolving landscape. For the complete transcript of the earnings call, please refer to the full earnings call transcript.