ScanSource FY2026 10-K: Revenue Up 6.1%, EPS $3.64, $97.5M Buyback
SCSC sits 75% above its 52-week low of $33.76.
Summary
ScanSource's FY2026 10-K shows 6.1% revenue growth, EPS of $3.64, and a $97.5M buyback, with strong liquidity to fund the MicroAge acquisition.
Key Events · Earnings and Guidance · SCSC
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FY2026 Revenue Up 6.1%
Net sales reached $3.226 billion, driven by 6.2% growth in Specialty Technology Solutions and 3.1% in Intelisys & Advisory.
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EPS Rises to $3.64
Diluted EPS increased 21% from $3.00 in FY2025, reflecting higher operating income and a lower share count from buybacks.
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$97.5M Share Repurchase
The company repurchased 2,420,668 shares in FY2026, reducing outstanding shares to 20.16 million, with $120.8 million remaining under authorization.
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Strong Liquidity Position
New $400M revolving credit facility and $100M term loan provide ample capacity; $400M was available for borrowing as of June 30, 2026.
Analysis · SCSC · Trade & Services
ScanSource's annual report confirms a solid fiscal 2026 with net sales rising 6.1% to $3.23 billion and diluted EPS of $3.64, up from $3.00 last year. The company repurchased $97.5 million of stock, reducing share count by over 2 million shares, and has $120.8 million remaining under its buyback authorization. The balance sheet remains strong with $400 million available on its new credit facility, providing ample liquidity for the $220.5 million MicroAge acquisition announced today. One area of caution: the Specialty Technology Solutions reporting unit's fair value exceeded its carrying value by only 2% in the annual goodwill impairment test, leaving little margin for error if performance falters.
At the time of this filing, SCSC was trading at $59.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1B. The 52-week trading range was $33.76 to $59.60. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.