ePlus Reports Strong Financial Growth in Second Quarter Fiscal Year 2027

ePlus Shows Strong Growth in Financial Outcomes for Second Quarter FY 2027

ePlus inc., a prominent player in the technology solutions sector, announced impressive financial results for the second quarter and first half of its fiscal year 2027, which concluded on September 30, 2026. The company reported robust performance across key financial metrics, highlighted by record gross billings that exceeded $1 billion. This positive momentum has led ePlus to raise its fiscal guidance for the year ahead, suggesting continued confidence in its growth trajectory.

Financial Highlights

For the second quarter, net sales surged by 9.7%, totaling approximately $667.9 million. While service revenues saw a slight decline of 2.4% to $120.8 million, the overall gross billings increased by 4.3% year-over-year, reaching $1,066.8 million. Notably, the gross profit experienced an increase of 11.2%, jumping to $180.3 million, and gross margins improved slightly from 26.6% to 27.0%. Additionally, net earnings from continuing operations rose by 5.8%, achieving $40.4 million for the quarter.

Adjusted EBITDA also saw significant growth, up 14.3% to $67.1 million, reflecting the company's commitment to enhancing profitability amid a dynamic market environment. This was evident in the adjusted net earnings from continuing operations per diluted share, which rose to $1.82, marking a 19% increase from the previous year’s quarter.

Over the first half of the fiscal year, ePlus reported a 5.2% rise in net sales to $1,317.0 million, with gross profit increasing by 5.0% to $331.6 million. The professional services segment, however, experienced a revenue dip, with sales decreasing by 8.3%. Despite this, the cloud services sector showed encouraging growth, contributing positively to the overall financial health of the firm.

Management Remarks

Mark Marron, President and CEO of ePlus, expressed confidence in these results, stating, "Our strong performance reflects the strength and breadth of our diversified business model, coupled with our customer-first approach. The rising demand for products and services related to AI and cybersecurity has been notable, encouraging our teams to innovate further."

He highlighted the company's solid balance sheet, which boasts a cash position of $381 million, further positioning the company favorably for future investments and enhancements to operational capabilities. In the second quarter, ePlus also advanced its acquisition strategy, notably with the integration of certain assets from Daymark Solutions, enhancing its offerings in critical IT solutions and services.

Looking Ahead

In light of the impressive second-quarter performance, ePlus has increased its fiscal year guidance, predicting upper single-digit growth in both net sales and gross profit, as well as low double-digit growth in adjusted EBITDA. As the technology landscape continues to evolve, particularly with the accelerating adoption of AI and cybersecurity priorities, ePlus is well-positioned to capitalize on emerging opportunities.

The company remains vigilant in managing its capital allocation strategy while ensuring its shareholder returns through dividends and share buybacks. As ePlus gears up for the remainder of the fiscal year, ongoing investments in customer relationships and innovative technologies underscore its commitment to long-term success in the industry.

Recent Achievements

Additionally, ePlus recently achieved exclusive ambassador partner status with Everpure and was named the NetApp North America Flash Partner of the Year. These accolades reflect the company's robust partnerships and reinforce its standing in the technology solutions market.

Conclusion

Overall, ePlus's fiscal year 2027 second-quarter financial results exhibit a blend of growth and stability, affirming its strategic direction and operational effectiveness. Moving forward, the company will continue to focus on enhancing its service offerings and customer relationships, ensuring it remains an industry leader in technology solutions.

For further information regarding ePlus, visit www.eplus.com.

Disclaimer: The guidance provided above is subject to changes and potential impacts from economic fluctuations and market conditions. ePlus acknowledges the variability in achieving its stated financial goals and may adapt its strategies accordingly.