ePlus (NASDAQ:PLUS) Releases Quarterly Earnings Results

ePlus (NASDAQ:PLUS) posted its earnings results on Thursday. The software maker reported $1.00 EPS for the quarter, topping the consensus estimate of $0.98 by $0.02, FiscalAI reports. ePlus had a net margin of 5.63% and a return on equity of 12.06%. The firm had revenue of $581.63 million for the quarter, compared to analysts’ expectations of $569.25 million.

Here are the key takeaways from ePlus’ conference call:

• ePlus reported a strong fiscal 2026, with gross billings reaching a record $3.8 billion and double-digit growth across key revenue and operating metrics. Full-year diluted EPS from continuing operations rose 64%, showing significant operating leverage.
• Management said demand was broad-based across AI, cloud, data center, networking, and security, with increasing contribution from AI-related projects. The company highlighted continued market share gains and strong customer interest in infrastructure modernization.
• The company completed the divestiture of its domestic financing business, repositioning ePlus as a pure-play technology solutions and services provider. Management said this simplifies the business and allows more capital and focus to be directed toward faster-growing IT markets.
• Services continued to expand, with full-year services revenue up 16% and managed services growing 11% for the year. Management emphasized that recurring offerings and multi-year wins are helping build a more durable revenue base.
• ePlus ended the year with $411 million in cash and used that strength to repurchase shares and raise its quarterly dividend by 8% to $0.27 per share. At the same time, management flagged potential headwinds from the worldwide memory chip shortage and geopolitical uncertainty, and guided fiscal 2027 to mid-single-digit growth in net sales, gross profit, and adjusted EBITDA.

ePlus Price Performance

Shares of PLUS stock opened at $88.65 on Friday. The company’s fifty day simple moving average is $82.06 and its two-hundred day simple moving average is $84.65. ePlus has a 1 year low of $62.11 and a 1 year high of $93.98. The stock has a market capitalization of $2.34 billion, a price-to-earnings ratio of 17.62, a PEG ratio of 0.97 and a beta of 1.04.

ePlus Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Wednesday, June 17th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.2%. This is a boost from ePlus’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Wednesday, June 17th. ePlus’s payout ratio is currently 19.88%.

Insider Transactions at ePlus

In other ePlus news, COO Darren S. Raiguel sold 1,000 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $89.95, for a total transaction of $89,950.00. Following the sale, the chief operating officer owned 55,748 shares of the company’s stock, valued at $5,014,532.60. The trade was a 1.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Over the last quarter, insiders have sold 1,289 shares of company stock worth $115,757. Insiders own 1.93% of the company’s stock.

Institutional Investors Weigh In On ePlus

Hedge funds and other institutional investors have recently bought and sold shares of the business. Captrust Financial Advisors bought a new stake in ePlus during the 4th quarter valued at $230,000. Elevation Point Wealth Partners LLC bought a new stake in ePlus during the 4th quarter valued at $206,000. Bank of Montreal Can bought a new stake in ePlus during the 4th quarter valued at $206,000. Janney Montgomery Scott LLC purchased a new position in shares of ePlus during the 4th quarter valued at $233,000. Finally, O Shaughnessy Asset Management LLC purchased a new position in shares of ePlus during the 4th quarter valued at $229,000. Institutional investors own 93.80% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have commented on PLUS. Zacks Research cut shares of ePlus from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 19th. Wall Street Zen cut shares of ePlus from a “buy” rating to a “hold” rating in a research report on Saturday, March 28th. Finally, Weiss Ratings cut shares of ePlus from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, April 13th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has an average rating of “Hold”.

About ePlus

ePlus Inc (NASDAQ:PLUS) is a technology solutions provider that helps enterprises and public-sector organizations maximize the value of their information technology investments. The company specializes in designing, implementing and managing complex IT infrastructures, with a focus on security, cloud computing, data center modernization and unified communications. By combining consulting services with software license management and hardware procurement, ePlus delivers end-to-end solutions that align with its clients’ strategic objectives.

The company’s offerings include cybersecurity assessments and managed security services, hybrid and public cloud deployments, network architecture and optimization, and collaboration platforms.