ePlus (PLUS) Q3 2026 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in net sales, gross profit, and EPS for Q3 and the first nine months, driven by strong demand in AI, cloud, networking, and security solutions.

• Completed sale of domestic financing business, shifting focus to technology solutions and three reportable segments; acquisition of Bailiwick Services, LLC expanded professional and managed services capabilities.

• Board approved a $0.25 per share quarterly dividend; over 200,000 shares repurchased during the quarter.

• Gained market share with integrated solutions, especially in mid-market and enterprise segments.

• Net earnings from continuing operations for Q3 were $33.4M, up 129.3% year-over-year; nine-month net earnings up 68.5% to $98.7M.

Financial highlights

• Q3 net sales rose 24.6% year-over-year to $614.8M; product sales up 32.2% to $501.8M; gross profit up 26.8% to $158.7M; gross margin at 25.8%.

• Net earnings from continuing operations increased 129.3% to $33.4M; adjusted EBITDA up 97.4% to $53.4M (8.7% margin).

• Year-to-date net sales up 22.2% to $1.86B; gross profit up 23.7% to $469.0M; net earnings from continuing operations up 68.5% to $98.7M.

• Diluted EPS from continuing operations: $1.27 for Q3 (+130.9% YoY), $3.74 for nine months (+70.8% YoY).

• Adjusted EBITDA for nine months: $158.8M (up 55.0% YoY); operating income for Q3: $43.5M (up 163.9% YoY).

Outlook and guidance

• Raised full-year guidance: net sales growth now expected at 20%-22%, gross profit growth at 19%-21%, and adjusted EBITDA growth at 41%-43%.

• Management expects continued demand for AI, security, and cloud solutions, but notes ongoing supply chain constraints, especially for memory chips.

• Guidance excludes potential recessionary impacts and other unforeseen events.