ePlus Achieves Impressive Financial Results for Q3 and Nine Months of FY 2026

ePlus Inc. Reports Q3 and Nine Month Financial Results for FY 2026

On February 4, 2026, ePlus Inc. (NASDAQ: PLUS), a prominent provider of technology solutions, shared encouraging financial results for their third quarter and the first nine months of the fiscal year 2026. The figures indicate robust growth across numerous key metrics, including net sales and earnings, reflecting a heightened demand for their services and products.

Financial Highlights

During the third quarter, ePlus reported a significant increase in consolidated net sales, reaching $614.8 million, marking a stunning growth of 24.6% compared to the same quarter last year. This rise was primarily driven by an impressive product segment performance, which saw sales surge by 32.2% to $501.8 million, propelled by a higher demand for networking, cloud, security, and collaboration products. However, service revenues slightly dipped by 0.7% year-over-year to $112.8 million due to specific project delays within some retail and consumer markets.

Gross profit also experienced a 26.8% boost, rising to $158.7 million, resulting in a consolidated gross margin of 25.8%, a modest increase from 25.4% in the prior year’s third quarter. This growth has led to net earnings from continuing operations swelling by an astounding 129.3% to $33.4 million. Adjusted EBITDA mirrored this positive trend with an increase of 97.4%, reaching $53.4 million.

Year-to-Date Performance

Reflecting on the first nine months of the fiscal year 2026, ePlus reported consolidated net sales of $1.86 billion, a rise of 22.2% from $1.52 billion the previous year. Similar to the quarterly metrics, product sales rose significantly, contributing to this increase. The product segment sales climbed by 22.9% to $1.51 billion, dominantly fueled by cloud, networking, and security products, even as consolidation efforts affected certain collaboration products’ performance. The firm also noted a substantial increase in earnings from continuing operations, which grew by 68.5% to $98.7 million.

Strategic Insights from Management

Mark Marron, ePlus’s President and CEO, commented on the third-quarter results, highlighting, "The scalability of our operating platform has provided operating leverage which can be seen in our increased gross profit and earnings. Our solid revenue growth is driven by the demand for AI technologies that are resulting in investments across our full suite of solutions. This momentum is primarily witnessed among our largest enterprises that are modernizing their infrastructures to harness AI advantages."

Furthermore, the demand from mid-market customers has played a crucial role in ePlus’s revenue performance, prompting continuous evolution and expansion of product offerings.

Guidance and Future Outlook

In light of this impressive trajectory, ePlus has raised its fiscal year 2026 guidance for net sales, gross profit, and adjusted EBITDA. The company now anticipates a net sales growth of 20% to 22% year-over-year, a positive revision from the previously guided mid-teens growth, which stands in stark contrast to FY 2025 figures of $2.01 billion from continuing operations.

Dividend Announcement

In addition to the financial achievements, ePlus's Board of Directors declared a quarterly cash dividend of $0.25 per common share. The dividend is scheduled to be paid on March 18, 2026, to shareholders recorded as of February 24, 2026, consolidating their commitment to delivering shareholder value.

Recent Recognition

The third quarter also saw ePlus appointing Mike Portegello to its Board of Directors and its subsidiary, Bailiwick, recognized at the National Retail Federation Innovators Showcase, underscoring the company’s growing influence within the technology solutions marketplace.

Conclusion

With such promising financial results and strategic initiatives in place, ePlus positions itself effectively for sustained growth in the technology solutions sector and continues to exceed market expectations. They express a commitment to maintaining strong financial discipline while aiming to deliver consistent growth and shareholder value.