Revenue: As of FY2027 Q1, the actual value is USD 649.11 M, beating the estimate of USD 639.95 M.

EPS: As of FY2027 Q1, the actual value is USD 1.16.

EBIT: As of FY2027 Q1, the actual value is USD 41.96 M.

ePlus inc. reported its first quarter results for the period ended June 30, 2026, with comparisons to June 30, 2025.

Overall Financial Performance

• Net sales increased 1.0% to $649.1 million from $642.8 million.
• Gross billings rose 0.5% to $957.1 million from $952.8 million.
• Gross profit decreased 1.5% to $151.3 million from $153.7 million, resulting in a gross profit margin of 23.3%, down from 23.9%.
• Operating expenses increased 1.6% to $112.5 million from $110.7 million.
• Operating income decreased 9.6% to $38.8 million.
• Other income, net, was $3.1 million, up from $0.6 million.
• Earnings from continuing operations before taxes decreased 3.7% to $42.0 million.
• The effective tax rate was 27.8%, compared to 26.5% in the prior year quarter.
• Net earnings from continuing operations decreased 5.4% to $30.3 million from $32.0 million.
• Adjusted EBITDA decreased 9.2% to $47.8 million from $52.7 million.

Segment Revenue

• Product segment sales increased 0.6% to $529.6 million from $526.4 million, driven by increases in networking, security, and collaboration products, partially offset by a decrease in cloud products.
• Professional services segment revenues decreased 5.1% to $68.1 million from $71.7 million, primarily due to decreases in project services and staff augmentation.
• Managed services segment revenue increased 15.1% to $51.3 million, mainly due to additional revenue from cloud managed services.

Segment Gross Profit Margins

• Product segment gross profit margin was 21.0%, down from 21.3%.
• Professional services segment gross profit margin decreased to 36.9% from 39.2%.
• Managed services gross profit increased 11.3%, though its gross profit margin decreased to 29.4% from 30.4%.

Net Sales by Type

• Networking net sales increased 2.5% to $223.7 million.
• Cloud net sales decreased -12.7% to $180.7 million.
• Security net sales increased 28.1% to $78.3 million.
• Collaboration net sales increased 31.8% to $15.5 million.

Net Sales by Customer End Market

• Telecom, media & entertainment net sales decreased -25.0% to $138.7 million.
• Technology net sales increased 42.6% to $118.0 million.
• SLED net sales decreased -11.8% to $79.9 million.
• Healthcare net sales increased 6.6% to $79.2 million.
• Financial services net sales increased 54.5% to $73.4 million.
• Retail net sales increased 9.2% to $34.9 million.

Balance Sheet Highlights (as of June 30, 2026 vs. March 31, 2026)

• Cash and cash equivalents were $448.9 million, up from $410.8 million.
• Inventory decreased -27.3% to $146.0 million from $200.9 million.
• Accounts receivable—trade, net increased 14.8% to $746.0 million from $650.0 million.
• Total stockholders’ equity was $1,072.0 million, compared with $1,069.0 million.

Capital Allocation

• ePlus inc. declared a quarterly cash dividend of $0.27 per common share, payable on September 16, 2026, to shareholders of record as of August 25, 2026.
• A new stock repurchase program was authorized for up to 1,500,000 shares of common stock over a 12-month period, starting August 11, 2026.

Fiscal Year Guidance

ePlus inc. reiterated its fiscal year 2027 guidance, expecting mid-single-digit year-over-year growth in net sales, gross profit, and adjusted EBITDA. This guidance does not account for potential recessionary conditions or other unexpected developments.