ScanSource Q2 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy SCSC?
Source: seekingalpha
- Earnings Performance: ScanSource reported a Q2 non-GAAP EPS of $0.80, missing expectations by $0.21, indicating a decline in profitability that may affect investor confidence.
- Revenue Growth Weakness: The second quarter revenue of $766.51 million, up 2.5% year-over-year, fell short of market expectations by $15.95 million, reflecting challenges from increased competition and weak demand.
- Recurring Revenue Growth: Despite the overall revenue miss, ScanSource's recurring revenue increased by 15.9% year-over-year, indicating sustained demand for its products and services, which may provide stability for future revenues.
- Annual Financial Outlook Adjustment: ScanSource revised its fiscal year 2026 net sales and adjusted EBITDA expectations, projecting net sales between $3.0 billion and $3.1 billion, below the consensus of $3.14 billion, reflecting a cautious outlook on future market conditions.
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Analyst Views on SCSC
Wall Street analysts forecast SCSC stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 39.370
Low
43.00
Averages
43.00
High
43.00
Current: 39.370
Low
43.00
Averages
43.00
High
43.00
No data
About SCSC
ScanSource, Inc. is a technology distributor converging technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity and cloud services. It uses multiple sales models to offer technology solutions from suppliers of specialty technologies, connectivity and cloud services. Its segments include Specialty Technology Solutions and Intelisys & Advisory. The Specialty Technology Solutions segment operates primarily in the United States and Brazil and includes specialty technology solutions distributed through a wholesale/resale sales model. This segment includes hardware, SaaS and subscription services. The Intelisys & Advisory segment operates in the United States and consists of sales and services to both channel sales partners and end users. This segment also includes Connectivity and Software-Defined Networking, Unified Communications as a Service and Contact Center as a Service, Security, Cloud/Data Center, among others.
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.
ScanSource Announces Q3 FY2026 Earnings Release Schedule
- Earnings Release Schedule: ScanSource plans to release its third quarter fiscal year 2026 results on May 7, 2026, at 8:30 a.m. ET, reflecting its ongoing performance in complex technology sectors.
- Conference Call Discussion: Later that day, management will host an earnings conference call at 10:30 a.m. ET to discuss the financial results, enhancing communication and transparency with investors.
- Webcast Access: Investors can access the earnings call via a live Internet webcast in the Investor Relations section of ScanSource's website, ensuring broad participation and information dissemination among stakeholders.
- Company Background: Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource is dedicated to providing technology solutions for channel partners and was recognized as one of South Carolina's Best Places to Work in 2026.
See More
ScanSource Reports Disappointing Earnings, Market Reaction Muted
- ScanSource Earnings Overview: ScanSource (NASDAQ:SCSC) reported Q4 revenues of $766.5 million, a 2.5% year-over-year increase, but fell short of analyst expectations, resulting in a 14.1% stock decline to $38.09, indicating market concerns about future growth.
- Industry Performance: The IT distribution and solutions sector performed well overall, with eight tracked companies exceeding revenue estimates by 2.3%, although next quarter's revenue guidance was 0.6% below expectations, reflecting the mixed challenges and opportunities in the industry.
- ePlus Outperformance: ePlus (NASDAQ:PLUS) achieved Q4 revenues of $614.8 million, up 24.6% year-over-year, surpassing analyst expectations by 11.4%, yet its stock fell 6.5% to $80.49, suggesting market caution regarding future performance despite strong results.
- Strong Growth for TD SYNNEX: TD SYNNEX (NYSE:SNX) reported revenues of $17.38 billion, a 9.7% year-over-year increase, exceeding analyst expectations by 2.6%, with a 6.1% stock increase to $160.25, highlighting its recognized role in the technology supply chain.
See More
ScanSource Appoints Mark Morgan as President of Specialty Technologies
- Leadership Change: ScanSource, Inc. has appointed Mark Morgan as President of Specialty Technologies, aiming to further advance the company's strategic focus on delivering customized solutions to meet the needs of a growing ecosystem of channel partners.
- Transformation Driver: Since joining ScanSource in 2003, Morgan has been instrumental in the company's evolution from a traditional hardware distributor to a leader in hardware, software, cloud, and connectivity, driving several strategic acquisitions that enhanced the company's market capabilities.
- Opportunity Capture: Morgan's leadership will assist partners in discovering and seizing new growth opportunities, particularly in accelerating the growth of the Converged Sales Team and the Specialty business, thereby enhancing the company's competitiveness in complex technology sectors.
- Acknowledgment of Former Leader: The company also expresses gratitude to Tony Sorrentino for his contributions over the past 26 years as he resigns, with Morgan continuing to report to Chairman and CEO Mike Baur to ensure a smooth leadership transition.
See More
ScanSource Q2 2026 Earnings Call Insights
- Financial Performance Overview: ScanSource reported a 3% year-over-year increase in net sales and a 1% rise in gross profit for Q2, but unexpected expenses negatively impacted EBITDA margins, indicating pressure on profitability.
- Strategic Shift: The company launched a unified communications sales team aimed at integrating hardware and cloud services to strengthen partner relationships and expand market share in a rapidly evolving tech ecosystem.
- Outlook Adjustment: Management revised full-year revenue expectations to a range of $3.0 billion to $3.1 billion, with adjusted EBITDA projected between $140 million and $150 million, reflecting uncertainty regarding the timing of large deals.
- Market Challenges: The Brazilian market experienced a 9% organic decline, attributed to market conditions, while management emphasized the need to monitor high period expenses and the slowdown in large deals impacting business growth.
See More
ScanSource Q2 Earnings Miss Expectations
- Earnings Performance: ScanSource reported a Q2 non-GAAP EPS of $0.80, missing expectations by $0.21, indicating a decline in profitability that may affect investor confidence.
- Revenue Growth Weakness: The second quarter revenue of $766.51 million, up 2.5% year-over-year, fell short of market expectations by $15.95 million, reflecting challenges from increased competition and weak demand.
- Recurring Revenue Growth: Despite the overall revenue miss, ScanSource's recurring revenue increased by 15.9% year-over-year, indicating sustained demand for its products and services, which may provide stability for future revenues.
- Annual Financial Outlook Adjustment: ScanSource revised its fiscal year 2026 net sales and adjusted EBITDA expectations, projecting net sales between $3.0 billion and $3.1 billion, below the consensus of $3.14 billion, reflecting a cautious outlook on future market conditions.
See More
ScanSource (SCSC) to Release Q2 FY2026 Results on February 5, 2026
- Earnings Release Schedule: ScanSource plans to release its second quarter fiscal year 2026 results on February 5, 2026, at approximately 8:30 a.m. ET, reflecting the company's commitment to transparency.
- Conference Call Arrangement: On the same day, ScanSource management will host a conference call at 10:30 a.m. ET to discuss the financial results, enhancing communication with investors.
- Webcast Access: Investors can access the earnings call via a live webcast on ScanSource's Investor Relations website, demonstrating the company's modernization and convenience in information dissemination.
- Company Background: Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource focuses on distributing complex technologies and has been recognized as one of the Best Places to Work in South Carolina for 2025, highlighting its strong reputation in the industry.
See More
ScanSource Announces Q3 FY2026 Earnings Release Schedule
- Earnings Release Schedule: ScanSource plans to release its third quarter fiscal year 2026 results on May 7, 2026, at 8:30 a.m. ET, reflecting its ongoing performance in complex technology sectors.
- Conference Call Discussion: Later that day, management will host an earnings conference call at 10:30 a.m. ET to discuss the financial results, enhancing communication and transparency with investors.
- Webcast Access: Investors can access the earnings call via a live Internet webcast in the Investor Relations section of ScanSource's website, ensuring broad participation and information dissemination among stakeholders.
- Company Background: Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource is dedicated to providing technology solutions for channel partners and was recognized as one of South Carolina's Best Places to Work in 2026.
See More
ScanSource Reports Disappointing Earnings, Market Reaction Muted
- ScanSource Earnings Overview: ScanSource (NASDAQ:SCSC) reported Q4 revenues of $766.5 million, a 2.5% year-over-year increase, but fell short of analyst expectations, resulting in a 14.1% stock decline to $38.09, indicating market concerns about future growth.
- Industry Performance: The IT distribution and solutions sector performed well overall, with eight tracked companies exceeding revenue estimates by 2.3%, although next quarter's revenue guidance was 0.6% below expectations, reflecting the mixed challenges and opportunities in the industry.
- ePlus Outperformance: ePlus (NASDAQ:PLUS) achieved Q4 revenues of $614.8 million, up 24.6% year-over-year, surpassing analyst expectations by 11.4%, yet its stock fell 6.5% to $80.49, suggesting market caution regarding future performance despite strong results.
- Strong Growth for TD SYNNEX: TD SYNNEX (NYSE:SNX) reported revenues of $17.38 billion, a 9.7% year-over-year increase, exceeding analyst expectations by 2.6%, with a 6.1% stock increase to $160.25, highlighting its recognized role in the technology supply chain.
See More
ScanSource Appoints Mark Morgan as President of Specialty Technologies
- Leadership Change: ScanSource, Inc. has appointed Mark Morgan as President of Specialty Technologies, aiming to further advance the company's strategic focus on delivering customized solutions to meet the needs of a growing ecosystem of channel partners.
- Transformation Driver: Since joining ScanSource in 2003, Morgan has been instrumental in the company's evolution from a traditional hardware distributor to a leader in hardware, software, cloud, and connectivity, driving several strategic acquisitions that enhanced the company's market capabilities.
- Opportunity Capture: Morgan's leadership will assist partners in discovering and seizing new growth opportunities, particularly in accelerating the growth of the Converged Sales Team and the Specialty business, thereby enhancing the company's competitiveness in complex technology sectors.
- Acknowledgment of Former Leader: The company also expresses gratitude to Tony Sorrentino for his contributions over the past 26 years as he resigns, with Morgan continuing to report to Chairman and CEO Mike Baur to ensure a smooth leadership transition.
See More
ScanSource Q2 2026 Earnings Call Insights
- Financial Performance Overview: ScanSource reported a 3% year-over-year increase in net sales and a 1% rise in gross profit for Q2, but unexpected expenses negatively impacted EBITDA margins, indicating pressure on profitability.
- Strategic Shift: The company launched a unified communications sales team aimed at integrating hardware and cloud services to strengthen partner relationships and expand market share in a rapidly evolving tech ecosystem.
- Outlook Adjustment: Management revised full-year revenue expectations to a range of $3.0 billion to $3.1 billion, with adjusted EBITDA projected between $140 million and $150 million, reflecting uncertainty regarding the timing of large deals.
- Market Challenges: The Brazilian market experienced a 9% organic decline, attributed to market conditions, while management emphasized the need to monitor high period expenses and the slowdown in large deals impacting business growth.
See More
ScanSource Q2 Earnings Miss Expectations
- Earnings Performance: ScanSource reported a Q2 non-GAAP EPS of $0.80, missing expectations by $0.21, indicating a decline in profitability that may affect investor confidence.
- Revenue Growth Weakness: The second quarter revenue of $766.51 million, up 2.5% year-over-year, fell short of market expectations by $15.95 million, reflecting challenges from increased competition and weak demand.
- Recurring Revenue Growth: Despite the overall revenue miss, ScanSource's recurring revenue increased by 15.9% year-over-year, indicating sustained demand for its products and services, which may provide stability for future revenues.
- Annual Financial Outlook Adjustment: ScanSource revised its fiscal year 2026 net sales and adjusted EBITDA expectations, projecting net sales between $3.0 billion and $3.1 billion, below the consensus of $3.14 billion, reflecting a cautious outlook on future market conditions.
See More
ScanSource (SCSC) to Release Q2 FY2026 Results on February 5, 2026
- Earnings Release Schedule: ScanSource plans to release its second quarter fiscal year 2026 results on February 5, 2026, at approximately 8:30 a.m. ET, reflecting the company's commitment to transparency.
- Conference Call Arrangement: On the same day, ScanSource management will host a conference call at 10:30 a.m. ET to discuss the financial results, enhancing communication with investors.
- Webcast Access: Investors can access the earnings call via a live webcast on ScanSource's Investor Relations website, demonstrating the company's modernization and convenience in information dissemination.
- Company Background: Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource focuses on distributing complex technologies and has been recognized as one of the Best Places to Work in South Carolina for 2025, highlighting its strong reputation in the industry.
See More
