ePlus Reports Q4 Revenue of $576.2M, Up 20.5% YoY
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Reports Q4 revenue $576.2M vs. $477.9M last year. "In Q4, 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, CEO. "We had a very strong FY26 signaling strong execution from our team. We saw revenue grow 22% to $2.4B and gross billings expand to $3.8B, an increase of 17% while generating adjusted EBITDA of $205M, an increase of 50%, delivering meaningful operating leverage for the year. With a healthy balance sheet, including cash of $411M, we continued to enhance shareholder value through a share repurchase plan and are increasing our quarterly dividend by 8% to 27c per common share. ePlus' services-led strategy, especially as it relates to the leveraging of our AI consulting services capabilities, makes us nimble enough to capture emerging opportunities and large enough to scale solutions for large enterprises, enabling us to help our customers in a rapidly evolving IT environment. We believe we are well positioned to capture market opportunity and scale growth over the long term".
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About PLUS
ePlus inc. is engaged in offering transformative technology solutions and services. It offers a portfolio of solutions, including artificial intelligence, security, cloud and data center, networking and collaboration, as well as managed, consultative and professional services, working with organizations across various industries to navigate business challenges. Its technology business segment consists of product, professional services, and managed services. Its product segment includes sales of information technology (IT) products, third-party software, and third-party maintenance, software assurance, and other third-party services. Its professional services segment includes its advanced professional services, staff augmentation, project management services, cloud consulting services and security services. Its managed services segment includes its advanced managed services, service desk, storage-as-a-service, cloud hosted services, cloud managed services and managed security services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Yield: The forward yield stands at 1.22%, reflecting the company's attractiveness in the current market environment, potentially increasing investor interest in its stock.
- Shareholder Record Date: The dividend will be payable on June 30, with a record date of June 17 and an ex-dividend date also on June 17, ensuring shareholders receive their earnings in a timely manner.
- Future Growth Expectations: ePlus anticipates mid-single-digit growth for FY2027, with the board raising the quarterly dividend by 8%, indicating confidence in future performance while providing shareholders with higher returns.
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- Strategic Business Restructuring: The divestiture of the domestic financing business allows ePlus to focus on high-growth IT markets, optimizing resource allocation and enhancing competitiveness in core technology growth areas, while initiating its first quarterly dividend reflects strong financial performance.
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- Dividend Yield: The forward yield stands at 1.22%, reflecting the company's attractiveness in the current market environment, potentially increasing investor interest in its stock.
- Shareholder Record Date: The dividend will be payable on June 30, with a record date of June 17 and an ex-dividend date also on June 17, ensuring shareholders receive their earnings in a timely manner.
- Future Growth Expectations: ePlus anticipates mid-single-digit growth for FY2027, with the board raising the quarterly dividend by 8%, indicating confidence in future performance while providing shareholders with higher returns.
See More
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- Significant Growth: ePlus Inc achieved a 53% year-over-year increase in EPS in Q4 and a 64% increase for the full year, indicating robust performance across key revenue and operating metrics, despite challenges from the global memory chip shortage.
- Strategic Business Restructuring: The divestiture of the domestic financing business allows ePlus to focus on high-growth IT markets, optimizing resource allocation and enhancing competitiveness in core technology growth areas, while initiating its first quarterly dividend reflects strong financial performance.
- Declining Gross Margin: Although consolidated gross margin decreased from 26.5% to 24.6%, the company is actively pursuing margin expansion through increased large enterprise sales and value-added services, demonstrating adaptability to the competitive market environment.
- Strong Cash Flow: ePlus maintains a cash balance of $411 million, enabling organic investments, acquisitions, and shareholder returns, showcasing financial resilience despite potential impacts from project delays and geopolitical issues.
See More
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- Increased Shareholder Returns: The Board authorized an 8% increase in the quarterly dividend to $0.27 per share, reflecting strong cash flow alongside impressive performance, ending the year with a cash balance of $411 million.
- Product and Service Growth: Q4 product sales surged 25%, nearing $2 billion for the full year, while service revenue also saw growth despite timing delays from select retail customers, indicating a successful transformation in product-service mix.
- Cautious Outlook: Management set mid-single-digit growth guidance for FY2027, emphasizing a conservative stance due to global memory chip shortages and geopolitical risks, even as AI-related opportunities are improving.
See More
ePlus (PLUS) Q4 2026 Earnings Transcript
See More
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- Revenue Decline: The reported revenue of $576.17 million represents a 9.6% year-over-year decline; however, it surpassed market expectations by $6.92 million, demonstrating a degree of competitive strength in adversity.
- Quarterly Dividend Declared: ePlus's Board of Directors announced a quarterly cash dividend of $0.27 per common share, payable on June 30, 2026, to shareholders of record as of June 17, 2026, reflecting the company's commitment to shareholder returns.
- Stock Price Reaction: ePlus shares fell 5.5% in after-hours trading, indicating market concerns over the revenue decline; despite the earnings beat, investor confidence in future growth appears to be shaken.
See More
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- High-Performance Computing: This service leverages NVIDIA accelerated computing clusters to ensure users have access to high-performance resources in secure colocation facilities, thereby improving the security posture and control of AI infrastructure, helping organizations realize long-term value from their investments.
- 24/7 Support and Management: ePlus offers complete design, deployment, and lifecycle management services implemented by certified engineers, ensuring clients gain higher flexibility and reliability in managing AI infrastructure ownership, meeting the urgent demand for AI solutions in enterprises.
- Industry Collaboration: ePlus's deep collaboration with NVIDIA enables it to deliver a full-stack solution that integrates NVIDIA's DGX BasePOD and SuperPOD platforms, accelerating AI development and deployment, further driving the realization of AI value across various industries.
See More
