ScanSource Reports Strong Q3 Results, Raises Full-Year Free Cash Flow Outlook
Summary
ScanSource reported strong Q3 FY26 financial results with an 8.8% increase in net sales and a 9.3% rise in non-GAAP diluted EPS, leading to a raised full-year free cash flow outlook.
Key Events
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Strong Q3 FY26 Financial Performance
Net sales increased 8.8% year-over-year to $766.8 million, with non-GAAP diluted EPS rising 9.3% to $0.94. GAAP diluted EPS also increased 5.4% to $0.78.
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Raised Free Cash Flow Outlook
The company raised its full-year fiscal 2026 free cash flow outlook to at least $90 million, up from the previous guidance of at least $80 million.
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Annual Guidance Reaffirmed
ScanSource reaffirmed its annual outlook for net sales, expecting $3.0 billion to $3.1 billion, and adjusted EBITDA, projected at $140 million to $150 million.
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Continued Share Repurchases
The company reported $71.4 million in share repurchases for the first nine months of fiscal 2026, demonstrating ongoing capital return to shareholders.
Analysis
ScanSource delivered strong third-quarter fiscal year 2026 results, exceeding prior-year performance in key metrics and raising its full-year free cash flow guidance. Net sales increased by 8.8% year-over-year, driven by growth in Specialty Technology Solutions. Non-GAAP diluted EPS saw a significant 9.3% increase. The company also reaffirmed its annual outlook for net sales and adjusted EBITDA, while notably increasing its free cash flow outlook by $10 million to at least $90 million. This improved liquidity forecast, alongside $71.4 million in share repurchases for the first nine months of fiscal 2026, signals robust operational performance and a continued commitment to shareholder returns.
At the time of this filing, SCSC was trading at $40.93 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $879.2M. The 52-week trading range was $33.76 to $46.25. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.