ScanSource (NASDAQ:SCSC) Posts Quarterly Earnings Results, Misses Estimates By $0.26 EPS

Posted by Brenda Bartman on Nov 6th, 2026

ScanSource (NASDAQ:SCSC – Get Free Report) released its earnings results on Thursday. The industrial products company reported $0.86 earnings per share for the quarter, missing analysts’ consensus estimates of $1.12 by ($0.26), FiscalAI reports. The firm had revenue of $962.29 million during the quarter, compared to analyst estimates of $860.35 million. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The business’s revenue for the quarter was up 30.1% on a year-over-year basis. During the same quarter last year, the company earned $1.06 earnings per share.

Here are the key takeaways from ScanSource’s conference call:

ScanSource raised its FY2027 outlook, including MicroAge, to $3.8 billion–$4.0 billion in net sales and $175 million–$185 million in adjusted EBITDA. It reaffirmed a target of at least $85 million in full-year free cash flow.
Profitability lagged sales growth: net sales rose 30% year over year, while reported net profit increased 9%. Management attributed margin pressure to an unusually high mix of lower-margin large hardware deals—estimated to account for 110–120 basis points of compression—and a customer-specific bad-debt reserve in Brazil.
Both segments grew sales and gross profit, with broad-based North American demand across security, networking, barcode mobility, and communications hardware. Management said the large-deal mix was unusual and expects a more balanced mix over the rest of the year.
MicroAge expands ScanSource’s reach in cloud, cybersecurity, data center, and AI, and management sees potential to bring its managed services and AI solutions to existing channel partners. The company has begun a co-selling pilot, so the opportunity’s results are still being tested.
Intelisys net billings grew 3.8%, and management is redirecting investment toward recruiting partners and generating new orders. The payoff may take time: the company said revenue realization can take six to nine months for smaller deals and 12 to 18 months for larger ones.

ScanSource Stock Down 5.1%

SCSC stock traded down $2.29 during midday trading on Friday, reaching $42.78. The company had a trading volume of 695,826 shares, compared to its average volume of 250,830. The company has a 50 day moving average of $58.21 and a two-hundred day moving average of $48.11. The company has a market capitalization of $871.43 million, a P/E ratio of 13.41, a PEG ratio of 0.77 and a beta of 1.28. ScanSource has a 1 year low of $33.76 and a 1 year high of $66.78. The company has a current ratio of 1.76, a quick ratio of 1.15 and a debt-to-equity ratio of 0.11.

Insider Activity at ScanSource

In related news, CEO Michael Baur sold 57,359 shares of ScanSource stock in a transaction on Friday, September 11th. The stock was sold at an average price of $58.04, for a total transaction of $3,329,116.36. Following the completion of the sale, the chief executive officer owned 200,698 shares of the company’s stock, valued at approximately $11,648,511.92. This trade represents a 22.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Stephen Jones sold 10,000 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $56.76, for a total value of $567,600.00. Following the completion of the transaction, the chief financial officer directly owned 87,421 shares in the company, valued at approximately $4,962,015.96. The trade was a 10.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 95,632 shares of company stock valued at $5,484,582. 3.18% of the stock is owned by insiders.

Key Stories Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

Positive Sentiment: Fiscal Q1 revenue rose 30.1% year over year to $962.3 million, topping analysts’ $860.4 million estimate. ScanSource also forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion, above the roughly $3.7 billion consensus. Article: ScanSource posts better-than-expected sales and guides for strong full-year sales
Negative Sentiment: Adjusted EPS was $0.86, missing the $1.12 consensus and down from $1.06 a year earlier. The earnings miss suggests the strong sales growth has not translated into comparable per-share earnings. Article: ScanSource shares fall after lower fiscal Q1 non-GAAP earnings miss estimates
Negative Sentiment: Shares fell below their 200-day moving average following the disappointing results, a technical signal that may add to near-term selling pressure. Article: ScanSource shares break below 200-day moving average on disappointing earnings

Analyst Ratings Changes

Several equities research analysts have commented on SCSC shares. Wall Street Zen upgraded shares of ScanSource from a “buy” rating to a “strong-buy” rating in a research report on Sunday, October 25th. Barclays lifted their price target on ScanSource from $43.00 to $51.00 and gave the stock an “equal weight” rating in a research note on Monday, October 12th. Northcoast Research downgraded shares of ScanSource from a “buy” rating to a “neutral” rating in a research report on Monday, August 17th. Weiss Ratings raised shares of ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Finally, Zacks Research lowered ScanSource from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $51.00.

Get Our Latest Analysis on ScanSource

About ScanSource

(Get Free Report)

ScanSource, Inc (NASDAQ: SCSC) is a technology distributor that connects manufacturers of business technology products with value-added resellers, systems integrators and other channel partners. The company provides products, services and expertise intended to help partners design, deploy and support technology solutions for business customers.

ScanSource’s offerings include point-of-sale and payment technology, barcode scanners, mobile computing devices, networking equipment, cybersecurity products, communications systems and cloud-based services.