Eplus Inc (PLUS) · Nov 5, 2026 · Earnings

ePlus earnings beat as FY27 guidance rises

Beat — GAAP EPS $1.56 vs ~$1.47 consensus

ePlus earnings beat consensus and lifted fiscal 2027 guidance, with cloud, security and managed services growth offsetting weaker professional services.

ePlus is a technology-solutions provider leaning into cloud, cybersecurity, AI infrastructure and managed services, while its older project-based professional-services business is under pressure. Its fiscal 2027 story began with only mid-single-digit growth guidance and a soft first quarter; the second quarter materially improves that trajectory.

The quarter beat a modest market bar by a wide margin. GAAP diluted EPS was $1.56 versus published consensus of roughly $1.47, while revenue reached $667.9 million versus approximately $636.1 million expected. The beat was supported by product growth, better product margins and managed-services expansion rather than by a single unusual earnings item.

FigureQ2 FY27Q2 FY26Consensus
Revenue (Financial Highlights)$667.9M (+9.7%)$608.8M$636.1M
Diluted GAAP EPS (Income Statement)$1.56 (+7.6%)$1.45$1.47
Adjusted EBITDA (Financial Highlights)$67.1M (+14.3%)$58.7M
Gross margin (Financial Highlights)27.0%26.6%
Services revenue (Financial Highlights)$120.8M (-2.4%)$123.8M

The more important change is the outlook upgrade. ePlus moved from mid-single-digit fiscal 2027 growth guidance to upper-single-digit growth for net sales and gross profit, plus low-double-digit Adjusted EBITDA growth. 〔0〕 That is a genuine improvement to the operating story, not merely a confirmation of prior expectations. The first-quarter release had reiterated mid-single-digit growth guidance.

Growth is concentrating in the parts of the portfolio most aligned with current technology spending. Second-quarter product sales rose 12.8%, cloud sales rose 39.2%, security sales rose 10.3%, and managed-services revenue rose 11.9%. Product gross margin also expanded to 25.8% from 24.5%, helping gross profit grow faster than revenue.

The weakness is real but currently contained. Professional-services revenue fell 11.3% and its gross margin dropped to 35.4% from 38.2% because retail-project delays reduced activity. Managed-services margin also slipped to 28.8% from 29.4%. For now, product mix and managed-services growth more than offset that drag, but the result is stronger because the higher-growth businesses carried the quarter—not because every segment improved.

The balance sheet shows growth consuming more working capital. Cash declined to $380.9 million from $410.8 million at fiscal year-end, while inventory rose 35.1% and trade receivables rose 14.9%, attributed to ongoing projects. That does not overturn the stronger earnings signal, but it means the upgraded growth outlook requires more capital tied up in execution.

The leadership change is orderly and largely non-operational. General Counsel and Chief Compliance Officer Erica Stoecker will retire after a transition period, with Deputy General Counsel Amanda Dupree taking over on November 27, 2026; Stoecker remains as Special Counsel until approximately June 30, 2027. 〔1〕 The overlap and internal succession make this a limited story relative to the earnings and guidance news. The $0.27 quarterly dividend is also a continuation of the existing capital-return policy rather than a fresh strategic signal.

Bottom line: This filing upgrades ePlus from a mid-single-digit growth story to one showing stronger cloud, security and managed-services execution, with management confident enough to raise the full-year outlook. The professional-services slump and heavier working-capital needs are the main offsets, but they do not outweigh the clear earnings beat and guidance increase.

What to watch next

Q3 FY27 earnings report

Original filing on SEC EDGAR

More Eplus Inc news

ePlus earnings beat as FY27 guidance rises | PLUS Stock News
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