The mid-single-digit FY2027 guidance represents a severe growth deceleration from FY2026's 22% revenue expansion. Traders should watch for further details on the conference call regarding the drivers of this slowdown — whether it reflects normalization post-AI infrastructure buildout, market share loss, or macro headwinds. The stock is likely to sell off sharply on the guidance cut relative to expectations.
Price Chart
Executive Summary
ePlus reported Q4 FY2026 results with net sales up 20.6% YoY to $576.2M and GAAP EPS from continuing operations of $0.78, a 52.9% increase YoY. The company initiated FY2027 guidance for mid-single-digit growth across net sales, gross profit, and adjusted EBITDA, and increased its quarterly dividend by 8% to $0.27 per share. The sharp deceleration from FY2026's 22% revenue growth to mid-single-digit guidance for FY2027 is a significant negative signal that overshadows the solid Q4 beat.
Key Financial Metrics
Key Facts
- Q4 FY2026 net sales increased 20.6% YoY to $576.2M from $477.9M
- Q4 GAAP EPS from continuing operations was $0.78, up 52.9% from $0.51 YoY
- Q4 Non-GAAP EPS from continuing operations was $1.00, up 44.9% from $0.69 YoY
- FY2026 full-year net sales grew 22.1% to $2,442.5M; GAAP EPS from continuing operations was $4.71, up 64.1%
- FY2027 guidance initiated for mid-single-digit percentage growth in net sales, gross profit, and adjusted EBITDA — a dramatic deceleration from FY2026's 22% revenue growth
- Quarterly dividend increased 8% to $0.27 per share from $0.25
- Cash and cash equivalents were $410.8M as of March 31, 2026, up from $389.4M a year earlier
- Gross margin declined to 24.6% in Q4 from 26.5% in the prior year quarter due to product mix shift
- Product segment gross margin fell to 22.2% from 24.7% YoY
Financial Impact
Q4 revenue $576.2M (+20.6% YoY), GAAP EPS $0.78 (+52.9% YoY); FY2027 guidance for mid-single-digit growth vs FY2026's 22% revenue growth — a ~15-17 percentage point deceleration
Risk Factors
- Mid-single-digit FY2027 guidance implies a dramatic growth deceleration that could trigger significant multiple compression
- Product segment gross margin declining 250bps YoY in Q4 suggests competitive pressure or unfavorable mix shift
- The company's largest end market (telecom/media/entertainment, 31.7% of Q4 sales) grew 80% YoY — potential normalization risk if this is project-driven
- SLED (state/local/education) end market declined 1.7% in Q4 and 7.4% for FY2026 — a structural headwind
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-023148 |
| Document: ef20075008_8k.htm | 0001140361-26-023148 |
| Document: 0001140361-26-023148-index-headers.html | 0001140361-26-023148 |
| Document: 0001140361-26-023148-index.html | 0001140361-26-023148 |
| Document: 0001140361-26-023148.txt | 0001140361-26-023148 |
| 8-K Data (Synthetic) | 0001140361-26-023148 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | 144 | $94.75 | awaiting T+60 | — | $96.51 (+1.86%) |
Aug 5, 2026 11w ago | Insider Cluster | $90.35 | awaiting T+60 | — | $96.51 (+6.82%) |
Jul 31, 2026 12w ago | Insider Cluster | $93.66 | awaiting T+60 | — | $96.51 (+3.04%) |
May 28, 2026 21w ago | 8-K | $82.09 $86.26 | ▼ −5.08% | ▼ −3.90% | $96.51 (−17.57%) |
US Market Status
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