ePlus Q3 net sales rise 24.6%, raises FY guidance

Overview

• Technology solutions provider's fiscal Q3 net sales rose 24.6% yr/yr

• Adjusted EBITDA for fiscal Q3 nearly doubled yr/yr

• Company raised fiscal 2026 guidance and announced $0.25 quarterly dividend

Outlook

• ePlus raises fiscal 2026 net sales guidance to 20%-22% growth

• Company expects fiscal 2026 gross profit to grow 19%-21%

• ePlus anticipates fiscal 2026 Adjusted EBITDA to rise 41%-43%

Result Drivers

• AI DEMAND - ePlus reported strong revenue growth driven by demand for AI-related solutions across cloud, compute, storage, and networking

• ENTERPRISE CUSTOMER GROWTH - Revenue growth from enterprise customers modernizing infrastructure for AI initiatives

• MID-MARKET EXPANSION - Growth in mid-market customer base due to expanded product and service solutions

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for ePlus inc is $108.00, about 27% above its February 3 closing price of $85.01

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn3lRkHQa

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