ePlus Q1 FY2027: A Modest Beat, Margin Compression, and a Fresh $1.5M Buyback
PLUS sits 56% above its 52-week low of $62.11.
Summary
ePlus posted a modest Q1 beat with $649.1M in sales and $47.8M in adjusted EBITDA, but gross margins slipped and operating income declined. A new 1.5M-share buyback was authorized.
Key Events · Earnings and Guidance · PLUS
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Q1 Revenue and Earnings Beat
Net sales rose 1% to $649.1M, with adjusted EBITDA of $47.8M exceeding consensus. Net earnings from continuing operations were $30.3M, or $1.16 per diluted share.
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Gross Margin Compression
Gross margin fell 60 bps to 23.3%, driven by lower professional services margins and a shift toward lower-margin product sales. Operating income declined 9.6% to $38.8M.
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Prior-Period Financial Revision
The company revised Q1 FY2025 financials to correct an immaterial revenue misstatement, increasing net sales by $5.5M and net earnings by $4.9M for that period.
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New Share Repurchase Authorization
On August 4, 2026, the board authorized the repurchase of up to 1.5M shares over 12 months, replacing the expiring program. The company also declared a $0.27 quarterly dividend.
Analysis · PLUS · Trade & Services
ePlus delivered a slight Q1 beat, with net sales of $649.1M and adjusted EBITDA of $47.8M both coming in above consensus. Gross margin, however, contracted 60 bps to 23.3%, and operating income fell 9.6% year-over-year, pressured by higher third-party delivery costs and a shift in product mix. The company also revised prior-period financials for an immaterial revenue misstatement and announced a new 1.5M-share repurchase authorization alongside its regular $0.27 dividend. While the results confirm steady demand, the margin pressure could weigh on profitability if the trend persists.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.9% of the 1656 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PLUS was trading at $97.05 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $62.11 to $98.14. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.