ScanSource (NASDAQ:SCSC) Stock Price Down 14% on Disappointing Earnings

ScanSource, Inc. (NASDAQ:SCSC) was down 14% on Friday following a dissappointing earnings announcement. The stock traded as low as $36.87 and last traded at $38.1110. Approximately 7,414 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 202,279 shares. The stock had previously closed at $44.33.

The industrial products company reported $0.80 EPS for the quarter, missing the consensus estimate of $1.00 by ($0.20). The firm had revenue of $766.51 million during the quarter, compared to analyst estimates of $782.46 million. ScanSource had a net margin of 2.48% and a return on equity of 9.72%. The firm’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.85 EPS.

ScanSource News Roundup

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Management launched a unified communications team to pursue a growing segment and diversify deal flow, a strategic move that could lift higher‑margin services over time. ScanSource updates FY26 revenue guidance to $3B–$3.1B amid slower large deal activity and launches unified communications team
• Positive Sentiment: Conference call/transcript emphasized steady underlying growth and execution on strategic initiatives (product/channel focus and go‑to‑market adjustments), which could support recovery if large‑deal cadence improves. ScanSource Inc (SCSC) Q2 2026 Earnings Call Highlights: Steady Growth Amid Strategic Initiatives
• Neutral Sentiment: The company noted modest year‑over‑year revenue growth (~2.5%) and announced a governance refresh — positive for oversight but unlikely to move near‑term results materially. ScanSource Posts Modest Q2 Growth and Governance Refresh
• Negative Sentiment: Q2 EPS of $0.80 missed consensus (~$1.00) and declined from $0.85 last year, signalling near‑term margin pressure and weaker profitability versus expectations. ScanSource (SCSC) Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: The company trimmed FY26 revenue guidance to $3.0–$3.1B (below Street ~$3.2B), explicitly citing slower large‑deal activity — the guidance cut is the primary driver of investor concern about near‑term growth. ScanSource updates FY26 revenue guidance to $3B–$3.1B amid slower large deal activity and launches unified communications team
• Negative Sentiment: Market reaction and news coverage cite the misses and guidance cut as reasons for the sell‑off; near‑term sentiment will likely track upcoming deal flow and whether management can book larger transactions again. Why ScanSource (SCSC) shares are sliding today

Wall Street Analyst Weigh In

Several research firms have recently commented on SCSC. Zacks Research cut ScanSource from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 21st. Wall Street Zen cut ScanSource from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ScanSource in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $42.50.

Insider Transactions at ScanSource

In other ScanSource news, CEO Michael L. Baur sold 9,559 shares of the stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $40.82, for a total value of $390,198.38. Following the completion of the sale, the chief executive officer directly owned 191,971 shares in the company, valued at $7,836,256.22. This represents a 4.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Stephen Jones sold 5,020 shares of the firm’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $42.30, for a total value of $212,346.00. Following the sale, the chief financial officer directly owned 83,326 shares in the company, valued at approximately $3,524,689.80. This represents a 5.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 25,020 shares of company stock valued at $1,035,669. Insiders own 3.18% of the company’s stock.

Institutional Investors Weigh In On ScanSource

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Y Intercept Hong Kong Ltd acquired a new position in ScanSource during the 3rd quarter worth approximately $611,000. Envestnet Asset Management Inc. raised its holdings in shares of ScanSource by 90.4% in the second quarter. Envestnet Asset Management Inc. now owns 14,151 shares of the industrial products company’s stock valued at $592,000 after purchasing an additional 6,720 shares during the last quarter. American Century Companies Inc. lifted its position in shares of ScanSource by 4.4% in the second quarter. American Century Companies Inc. now owns 854,624 shares of the industrial products company’s stock worth $35,732,000 after purchasing an additional 36,161 shares in the last quarter. WINTON GROUP Ltd acquired a new position in ScanSource during the second quarter worth $2,384,000. Finally, Pzena Investment Management LLC grew its position in ScanSource by 3.6% in the second quarter. Pzena Investment Management LLC now owns 975,578 shares of the industrial products company’s stock valued at $40,789,000 after purchasing an additional 33,510 shares in the last quarter. 97.91% of the stock is currently owned by institutional investors and hedge funds.

ScanSource Trading Up 5.5%

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.16 and a quick ratio of 1.32. The business’s 50-day moving average is $40.95 and its two-hundred day moving average is $41.78. The firm has a market cap of $841.29 million, a P/E ratio of 11.91, a P/E/G ratio of 0.72 and a beta of 1.28.

About ScanSource

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.