ePlus (NASDAQ:PLUS – Get Free Report) issued its quarterly earnings data on Thursday. The software maker reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.98 by $0.02, FiscalAI reports. The firm had revenue of $581.63 million for the quarter, compared to analysts’ expectations of $569.25 million. ePlus had a net margin of 5.24% and a return on equity of 11.43%.
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 Stock Performance
PLUS opened at $82.09 on Friday. The company’s 50 day simple moving average is $82.21 and its 200 day simple moving average is $84.63. ePlus has a 1 year low of $62.11 and a 1 year high of $93.98. The stock has a market capitalization of $2.17 billion, a PE ratio of 16.96, a P/E/G ratio of 0.97 and a beta of 1.04.
ePlus Increases Dividend
Analysts Set New Price Targets
A number of equities research analysts recently commented on the stock. Weiss Ratings cut shares of ePlus from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, April 13th. Wall Street Zen cut shares of ePlus from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. Finally, Zacks Research cut shares of ePlus from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 19th. Two analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has an average rating of “Hold”.
View Our Latest Stock Analysis on PLUS
Insider Activity
In related news, COO Darren S. Raiguel sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $89.95, for a total value of $89,950.00. Following the sale, the chief operating officer directly owned 55,748 shares of the company’s stock, valued at approximately $5,014,532.60. This trade represents a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold 1,289 shares of company stock valued at $115,757 over the last 90 days. 1.93% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On ePlus
Hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. boosted its position in shares of ePlus by 361.9% in the second quarter. Osaic Holdings Inc. now owns 448 shares of the software maker’s stock worth $32,000 after acquiring an additional 351 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in ePlus in the fourth quarter valued at approximately $108,000. US Bancorp DE raised its holdings in ePlus by 856.4% in the third quarter. US Bancorp DE now owns 1,731 shares of the software maker’s stock valued at $123,000 after buying an additional 1,550 shares during the period. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in ePlus in the fourth quarter valued at approximately $138,000. Finally, Focus Partners Wealth purchased a new position in ePlus in the third quarter valued at approximately $154,000. 93.80% of the stock is owned by institutional investors and hedge funds.
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.
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