EPLUS INC (PLUS): Fiscal Year 2027 ~ Strong Second Quarter Performance Across Key Metrics ~ ~ Record Quarterly Gross Billings Exceeded $1 Billion ~ ~ Increasing Fiscal 2027…
EPLUS INC (PLUS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ePlus Reports Second Quarter and First Half Financial Results Fiscal Year 2027 ~ Strong Second Quarter Performance Across Key Metrics ~ ~ Record Quarterly Gross Billings Exceeded $1 Billion ~ ~ Increasing Fiscal 2027 Guidance ~ Second Quarter Fiscal Year 2027 • Net s
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst that can drive the stock higher in the immediate trading session.
Market read
The report adds new earnings data and guidance, offering a clear trading signal for PLUS.
What to watch
Potential margin pressure from higher operating expenses and integration costs of Daymark acquisition.
ePlus Reports Second Quarter and First Half Financial Results Fiscal Year 2027
Second-quarter net sales, gross profit, operating income, continuing-operations earnings, adjusted EBITDA and diluted EPS all increased year over year, while management increased fiscal 2027 growth guidance for net sales, gross profit and adjusted EBITDA.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Second quarter net salesGAAP | $667.9M | – | 9.7% |
| Second quarter services revenuesGAAP | $120.8M | – | (2.4%) |
| Second quarter gross billingsother | $1.07B | – | 4.3% |
| Second quarter gross profitGAAP | $180.3M | – | 11.2% |
| Second quarter gross marginGAAP | 27.0% | – | – |
| Second quarter operating expensesGAAP | $123.8M | – | 9.2% |
| Second quarter operating incomeGAAP | $56.5M | – | 15.8% |
| Second quarter other income (expense), netGAAP | −$500K | – | – |
| Second quarter earnings from continuing operations before taxesGAAP | $56M | – | 3.7% |
| Second quarter effective tax rateGAAP | 27.9% | – | – |
| Second quarter net earnings from continuing operationsGAAP | $40.4M | – | 5.8% |
| Second quarter adjusted EBITDAnon-GAAP | $67.1M | – | 14.3% |
| Second quarter net earnings from continuing operations per common share-dilutedGAAP | $1.56 | – | 7.6% |
| Second quarter net earnings from continuing operations per common share-dilutednon-GAAP | $1.82 | – | 19.0% |
| Second quarter net earningsGAAP | $40.4M | – | – |
| Second quarter earnings (loss) from discontinued operations, net of taxesGAAP | - | – | – |
| First half net salesGAAP | $1.32B | – | 5.2% |
| First half services revenuesGAAP | $240.2M | – | remained consistent |
| First half gross billingsother | $2.02B | – | 2.5% |
| First half gross profitGAAP | $331.6M | – | 5.0% |
| First half gross marginGAAP | 25.2% | – | remained consistent |
| First half operating expensesGAAP | $236.3M | – | 5.5% |
| First half operating incomeGAAP | $95.4M | – | 3.9% |
| First half other income (expense), netGAAP | $2.6M | – | – |
| First half earnings from continuing operations before taxesGAAP | $98M | – | 0.4% |
| First half effective tax rateGAAP | 27.9% | – | – |
| First half net earnings from continuing operationsGAAP | $70.7M | – | 0.7% |
| First half adjusted EBITDAnon-GAAP | $114.9M | – | 3.2% |
| First half net earnings from continuing operations per common share-dilutedGAAP | $2.72 | – | 2.3% |
| First half net earnings from continuing operations per common share-dilutednon-GAAP | $3.11 | – | 5.1% |
| First half net earningsGAAP | $70.7M | – | – |
| First half earnings from discontinued operations, net of taxesGAAP | - | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Second quarter Product segmentIncreases in revenue from cloud, security, collaboration and other products, partially offset by a decrease in networking products. | $547.1M | – | 12.8% |
| Second quarter Professional services segmentDecreases in revenue and gross profit from project-related services due to delays from retail customers. | $67.8M | – | (11.3%) |
| Second quarter Managed services segmentAdditional revenue from cloud managed services. | $53.1M | – | 11.9% |
| First half Product segmentIncreases in revenue from cloud, security, and collaboration products, offset by a decrease in networking products. | $1.08B | – | 6.5% |
| First half Professional services segmentDecreases in revenue from project services, and staff augmentation. | $135.8M | – | (8.3%) |
| First half Managed services segmentAdditional sales of cloud services. | $104.4M | – | 13.4% |
Fiscal year 2027 outlook
- Revenueyear over year growth to the upper single digits for net sales
- Noteyear over year growth to the upper single digits for gross profit
- Noteyear over year growth to the low double digits for adjusted EBITDA
- NoteThis guidance does not factor in recessionary conditions, or other unexpected developments.
Capital returns
- Board of Directors declared a quarterly cash dividend of $0.27 per common share.
- Dividend will be paid on December 16, 2026, to shareholders of record as of the close of business on November 24, 2026.
- Total shares outstanding were 26.0 million on September 30, 2026, and 26.3 million on March 31, 2026.
- Management stated it is returning capital to shareholders via share repurchases and dividend payments.
What drove it
- Second-quarter product segment gross margin was 25.8%, up from 24.5%, due to a shift in product mix and increased sales of third-party maintenance, subscriptions and services recognized on a net basis.
- Professional services gross margin declined to 35.4% from 38.2% in the second quarter.
- Managed services gross profit increased 9.4% year over year, while gross margin declined to 28.8% from 29.4%.
- Second-quarter gross profit growth was driven by the product and managed services segments, partly offset by the professional services segment.
- Second-quarter operating expenses increased primarily because of variable compensation, salaries and benefits, general and administrative costs, and Daymark acquisition-related expenses.
- The company acquired certain assets and liabilities of Daymark Solutions during the second quarter.
- Second-quarter other income (expense), net reflected a $3.5 million reduction in the fair value of the contingent consideration receivable, lower interest income, and foreign currency transaction losses compared with foreign exchange gains in the prior-year quarter.
- Cloud net sales increased 39.2% in the second quarter, security increased 10.3%, collaboration increased 11.3%, and networking declined 9.2%.
- Financial services net sales increased 48.3% in the second quarter, healthcare increased 22.0%, while telecom, media & entertainment declined 12.9% and retail declined 12.7%.
Concerns
- Professional services segment revenue decreased 11.3% in the second quarter and 8.3% in the first half.
- Professional services segment gross margin declined to 35.4% in the second quarter from 38.2%, and to 36.2% in the first half from 38.7%.
- Managed services gross margin declined to 28.8% in the second quarter from 29.4%, and to 29.1% in the first half from 29.9%, mainly driven by increased third-party costs in the first half.
- Networking gross billings decreased 9.2% in the second quarter and networking net sales decreased 9.2%.
- First-half net earnings from continuing operations increased only 0.7%, while other income (expense), net declined to $2.6 million from $5.8 million.
- Management stated that fiscal 2027 guidance does not factor in recessionary conditions or other unexpected developments.
What to watch
- Execution against increased fiscal 2027 guidance for upper-single-digit year-over-year net sales and gross-profit growth and low-double-digit adjusted EBITDA growth.
- Whether cloud, security, collaboration and other product demand continues to offset lower networking sales.
- The timing of retail customer project-related services and the trajectory of professional services revenue and margin.
- The effect of increased third-party costs on managed services gross margin.
- Working-capital movements associated with several ongoing projects, including inventory and accounts receivable.
- Integration and expenses related to the acquired Daymark assets and liabilities.
Balance sheet and cash flow
- Cash and cash equivalents were $380.9 million as of September 30, 2026, down from $410.8 million as of March 31, 2026.
- Inventory was $271.4 million as of September 30, 2026, compared with $200.9 million as of March 31, 2026, and increased 35.1% due to several ongoing projects.
- Accounts receivable—trade, net was $746.9 million as of September 30, 2026, compared with $650.0 million as of March 31, 2026, and increased 14.9%.
- Total stockholders’ equity was $1,096.4 million as of September 30, 2026, compared with $1,069.0 million as of March 31, 2026.
- Total assets were $1,995,386 thousand as of September 30, 2026, compared with $1,800,952 thousand as of March 31, 2026.
- Total liabilities were $898,968 thousand as of September 30, 2026, compared with $731,982 thousand as of March 31, 2026.
- Accounts payable—floor plan was $139,227 thousand as of September 30, 2026, compared with $119,693 thousand as of March 31, 2026.
Analysis
ePlus reported a strong second quarter for fiscal 2027. Net sales increased 9.7% to $667.9 million and gross billings increased 4.3% to $1,066.8 million, which the company described as a record quarterly level. Gross profit increased 11.2% to $180.3 million, faster than sales, and gross margin improved to 27.0% from 26.6%. Operating income increased 15.8% to $56.5 million, adjusted EBITDA increased 14.3% to $67.1 million, and GAAP diluted continuing-operations EPS increased to $1.56 from $1.45.
Product sales were the principal growth engine. Second-quarter product segment sales increased 12.8% to $547.1 million, supported by cloud, security, collaboration and other products, while networking declined. Product gross margin increased to 25.8% from 24.5%, reflecting mix and greater sales of third-party maintenance, subscriptions and services recognized on a net basis. Cloud net sales increased 39.2%, security increased 10.3%, collaboration increased 11.3%, and other product sales increased 166.5%, whereas networking net sales declined 9.2%.
Services results were mixed. Professional services revenue decreased 11.3% to $67.8 million and gross margin fell to 35.4% from 38.2%, with management citing delays from retail customers in project-related services. Managed services revenue increased 11.9% to $53.1 million on cloud managed services, but gross margin decreased to 28.8% from 29.4%. These offsets also appear in the first half, where professional services revenue declined 8.3%, managed services revenue increased 13.4%, and total gross margin remained consistent at 25.2%.
First-half growth was more moderate than the second-quarter result. Net sales increased 5.2% to $1,317.0 million, gross profit increased 5.0% to $331.6 million, operating income increased 3.9% to $95.4 million, and continuing-operations earnings increased 0.7% to $70.7 million. First-half other income (expense), net was $2.6 million versus $5.8 million, principally reflecting the $3.5 million reduction in the contingent consideration receivable. The effective tax rate was lower in both reported periods, at 27.9%.
The balance sheet retained substantial cash, with cash and cash equivalents of $380.9 million, although inventory and trade receivables rose to $271.4 million and $746.9 million, respectively, as several projects remain ongoing. The company acquired certain Daymark assets and liabilities, declared a $0.27 per-share quarterly dividend, and stated that it continues to balance acquisitions, growth investments, repurchases and dividends. Management increased fiscal 2027 guidance to upper-single-digit growth for net sales and gross profit and low-double-digit growth for adjusted EBITDA, placing continued product-led demand and services-margin execution at the center of the outlook.
Management, verbatim
We delivered robust top line growth, improved profitability, and experienced growth against key metrics in the second quarter. Record gross billings surpassed the prior year’s record showing strong momentum reflecting our customer-first approach as we provide the products and services our clients require, particularly for Artificial Intelligence (AI) and Cybersecurity.
Mark Marron, President and CEO
Our strong balance sheet represents a competitive advantage, with our cash position at $381 million at quarter end. During the second quarter we advanced our acquisition strategy with the purchase of certain assets and liabilities of Daymark Solutions, a provider of critical IT solutions and professional services focused on implementing and supporting complex hybrid cloud, cybersecurity, compliance, and data centers.
Mark Marron, President and CEO
The accelerating adoption of AI, increasing demand for advanced data center infrastructure and growing emphasis on cybersecurity and digital transformation continue to reshape the technology landscape, creating significant opportunities for long-term growth for ePlus.
Mark Marron, President and CEO
Not in the filing
stated, not guessed- Prior fiscal 2027 guidance was not provided, so no comparison of actual results with prior guidance is available.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A total debt figure was not reported.
- A quantitative share-repurchase amount was not reported.
- Specific numerical fiscal 2027 guidance ranges or targets for net sales, gross profit and adjusted EBITDA were not reported.
- Fiscal 2027 guidance for gross margin, operating expenses and tax rate was not reported.
- Prior-quarter comparisons were not reported for the key operating metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ePlus Inc. filed a Form 8‑K announcing its Q2 FY2027 financial results and an increase in FY2027 guidance.
Ticker impact
ePlus Inc. reported Q2 FY2027 results with net sales up 9.7% to $667.9M and gross billings exceeding $1B, raising FY2027 guidance.
likely upward pressure as investors price in higher guidance and robust margins
The earnings beat and raised guidance are fresh primary disclosures that can move the stock immediately.
Market effects
Highlights strength in AI and cybersecurity hardware demand, supporting related tech stocks.
Positive for U.S. technology sector sentiment.
Reinforces global AI spending trends.
Counterpoint
If the market has already priced in AI demand, the upside may be limited.
Key entities
- companyePlus Inc.
NASDAQ-listed provider of technology solutions.
