ePlus Inc. Reports 1% Revenue Growth to $649.1 Million for Quarter Ended June 30, 2026

ePlus Inc. reported its financial results for the three months ended June 30, 2026, revealing a total revenue of $649.1 million, a 1% increase from $642.8 million in the same period last year. The growth was primarily driven by increased sales in the technology, healthcare, retail, and financial services sectors, although it was partially offset by declines in the telecom and media sectors. The company's gross profit for the quarter was $151.3 million, down from $153.7 million a year earlier, resulting in a gross profit margin of 23.3%, a decrease from 23.9% in the prior year.

Operating income for the quarter was reported at $38.8 million, down from $42.9 million in the previous year, reflecting a decrease in profitability. The company’s net earnings from continuing operations were $30.3 million, compared to $32.0 million in the same quarter last year. This decline in net earnings was attributed to lower operating profits, despite an increase in other income, which rose to $3.1 million from $0.6 million a year earlier, driven by higher interest income and reduced foreign exchange losses.

In terms of operational metrics, ePlus reported an increase in its employee headcount, rising to 2,171 from 2,138 a year ago. The company continues to focus on expanding its managed services offerings, which saw revenue growth to $51.3 million, up from $44.6 million in the prior year. The product segment also performed well, generating $529.6 million in sales, a slight increase from $526.4 million. However, the professional services segment experienced a decline, with revenues falling to $68.1 million from $71.7 million.

Strategically, ePlus completed the divestiture of its domestic financing business in June 2025, which has allowed the company to concentrate on its core technology solutions. This shift has resulted in a reorganization of its business segments into product, professional services, and managed services. The company is also navigating challenges related to supply chain constraints, particularly in the semiconductor market, which may impact product availability and pricing in the near term.

Looking ahead, ePlus remains optimistic about its growth prospects, particularly in the areas of artificial intelligence, cloud solutions, and digital transformation. The company anticipates that ongoing investments in these areas will drive future revenue growth, although it acknowledges potential risks related to economic conditions and supply chain disruptions. The management's outlook suggests a commitment to enhancing its service offerings and expanding its market presence, particularly in international markets.