| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 649.11 | 1.9% |
| Total Income | 649.11 | 1.9% |
| Expenditure | 610.28 | 24.8% |
| PBT | 41.96 | 14.0% |
| Net Profit | 30.28 | 19.7% |
| OPM | 5.98% | 0.30pp |
| NPM | 4.67% | 1.25pp |
| EPS | 1.17 | 18.2% |
ePlus Reports Q1 FY27 Financial Results
05 Aug 2026 · 5 Aug, 3:07 am
Summary
ePlus inc. reported a 1.0% increase in net sales to $649.1 million for the first quarter of fiscal year 2027, driven by higher product and service revenues. While gross billings saw a modest 0.5% increase, gross profit declined 1.5% to $151.3 million, impacting the gross profit margin to 23.3%. Net earnings from continuing operations decreased by 5.4% to $30.3 million, and Adjusted EBITDA fell 9.2% to $47.8 million. Management cited strong execution against a challenging year-over-year comparison and product shipment delays due to the memory chip shortage, but noted strong growth in security and managed services, with managed services achieving its first $50 million revenue quarter.
Key Highlights
- 1
Net sales increased by 1.0% to $649.1 million for the first quarter of fiscal year 2027.
- 2
Services revenues saw a 2.6% increase, reaching $119.4 million.
- 3
Gross billings increased by 0.5% to $957.1 million.
- 4
Gross profit decreased by 1.5% to $151.3 million, with a gross profit margin of 23.3%.
- 5
Net earnings from continuing operations decreased by 5.4% to $30.3 million.
- 6
Adjusted EBITDA decreased by 9.2% to $47.8 million.
- 7
Net earnings from continuing operations per common share-diluted decreased by 4.1% to $1.16.
Management Comments
Mark Marron
The first quarter reflected strong execution against a challenging year over year comparison. We had record sales and saw a significant increase in booked and open orders which we believe positions us for a strong second half. During the quarter, we saw product shipment delays and lead times extended by the ongoing memory chip shortage. We continued to see strong growth in security, managed services, and within our mid-market customer base overall. Managed services delivered its first $50 million revenue quarter and provides a reliable revenue stream which affirms our services-led, value-add approach for customers. Our customers operate in areas with strong expansion potential, and our growth is underscored by our close customer relationships as they look to us for help to expand their businesses, optimize internal efficiencies, and operate their IT securely. As technology investment continues to accelerate, we are well-positioned to capitalize on the significant long-term growth opportunities across artificial intelligence, data centers, cybersecurity and other mission-critical markets. Supported by our strong balance sheet and disciplined approach to capital allocation, we will continue investing in our capabilities, for both products and services, while executing on our strategy to deliver long-term sustainable growth and shareholder value. Reflecting our confidence in the business and the visibility into our open orders we have today, we are reaffirming our fiscal 2027 guidance.
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