ScanSource Q1 Sales Rise 30.1%; Adjusted Diluted EPS Is $0.86
ScanSource reported Q1 fiscal 2027 net sales of $962.3M, up 30.1% YoY, with adjusted diluted EPS of $0.86. Gross profit rose 8.8% to $116.9M, but operating income fell 52.2%. The company raised its fiscal 2027 outlook following the MicroAge acquisition, expecting net sales of $3.8B-$4.0B and adjusted EBITDA of $175M-$185M.
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue growth, margin trends, and revised FY guidance, offering traders actionable insight.
Market read
Strong top‑line growth and raised outlook may drive SCSC stock higher, while margin pressure tempers enthusiasm.
What to watch
Operating income fell 52% YoY, indicating cost pressures despite revenue growth.
Background
ScanSource (SCSC) is a U.S. IT solutions integrator that recently completed the acquisition of MicroAge, expanding its service portfolio.
Ticker impact
ScanSource reported Q1 2027 net sales of $962.3M (+30.1% YoY) and raised its FY sales outlook to $3.8‑$4.0B after acquiring MicroAge.
potential upside as market prices in higher sales and raised FY outlook
Quarterly earnings beat on revenue, and management lifted guidance, which typically drives buying interest.
Market effects
Positive for IT solutions and managed services sector as ScanSource's acquisition expands cloud and cybersecurity capabilities.
U.S. tech services equities may see modest lift.
Limited to North American tech services investors.
Counterpoint
Margin compression and higher bad‑debt expense could weigh on profitability, suggesting caution.
Key entities
- CompanyScanSource, Inc.
U.S. IT solutions provider reporting Q1 results.
- CompanyMicroAge
Acquired IT solutions integrator now part of ScanSource.
