ePlus Inc. (NASDAQ: PLUS) reported third‑quarter fiscal 2026 results on February 4, 2026, delivering net sales of $614.8 million, up 24.6 % year‑over‑year, and adjusted EBITDA of $53.4 million, a 97.4 % jump from the same period a year earlier. Non‑GAAP earnings per share of $1.45 surpassed the consensus estimate of $0.96, a beat of $0.49 or 51 %. Revenue also exceeded the $551.8 million forecast by $63 million, a 19 % surprise.
Product sales drove the majority of the revenue lift, rising 32.2 % to $501.8 million as demand for AI‑enabled data‑center and cloud solutions surged. In contrast, professional services revenue fell 7.8 % to $64.1 million, reflecting project delays in retail‑customer deployments, while managed services grew 10.5 % to $48.7 million. Gross billings increased 15.6 % to $982.1 million, and the company’s consolidated gross margin improved to 25.8 % from 25.4 % a year earlier, largely due to a richer product mix and vendor incentives.
Operating income expanded 163.9 % to $43.5 million, driven by higher product margins and operational leverage as revenue scales. The company’s operating margin rose to 7.1 % from 4.2 % a year ago, reflecting disciplined cost management amid rising commodity costs. Adjusted EBITDA margin climbed to 8.7 % from 6.9 % a year earlier, underscoring the company’s ability to convert revenue growth into profitability.
Management raised its fiscal 2026 guidance, now projecting net sales growth of 20 % to 22 % and adjusted EBITDA growth of 41 % to 43 %. CEO Mark Marron said the company is “experiencing strong momentum” and that AI‑related infrastructure demand is a key tailwind. CFO Elaine Marion highlighted the “resilience and scalability of our business model” and noted that inventory days have risen to 22 days, a reflection of higher demand and project activity that the company expects to remain elevated in the coming quarters.
The results prompted a 0.93 % uptick in aftermarket trading, closing at $85.01. Analysts cited the earnings beat and the raised guidance as primary drivers of the positive reaction, while noting that the company’s focus on high‑growth AI, cloud, and security segments positions it well for continued expansion.
ePlus also completed the sale of its domestic financing business in June 2025, sharpening its focus on core technology solutions. Management warned of a potential industry‑wide memory shortage as a near‑term risk, but emphasized that the company’s strategic investments in AI and cloud infrastructure are expected to offset this headwind. The combination of robust product growth, margin expansion, and a confident outlook signals that ePlus is well positioned to capitalize on the accelerating demand for AI‑driven data‑center and cloud services.
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