ScanSource Q2 sales and EPS miss analyst estimates

Overview

• Technology distributor's Q2 FY26 sales missed analyst expectations

• Adjusted EPS for Q2 FY26 missed analyst expectations

• Company announced leadership changes in board committees

Outlook

• ScanSource revises FY26 net sales forecast to $3.0 bln-$3.1 bln from $3.1 bln-$3.3 bln

• Company lowers FY26 adjusted EBITDA forecast to $140 mln-$150 mln from $150 mln-$160 mln

• ScanSource maintains FY26 free cash flow forecast at least $80 mln

Result Drivers

• RECURRING REVENUE GROWTH - Recurring revenue increased 15.9% year-over-year, contributing significantly to overall sales growth

• SEGMENT PERFORMANCE - Specialty Technology Solutions and Intelisys & Advisory segments drove sales growth, with North America leading the increase

• CASH FLOW STRENGTH - Company reported strong free cash flow, supporting its strategic goals

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Scansource Inc is $50.00, about 12.8% above its February 4 closing price of $44.33

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw1psJ9Ka

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