ePlus Inc. reported significant financial growth for the fiscal year ending March 31, 2026, with net sales reaching $2.44 billion, a 22.1% increase from $2.00 billion in the previous year. The company's gross profit also rose to $616.1 million, up from $512.1 million, resulting in a gross margin of 25.2%. Operating income increased to $166.1 million, compared to $99.7 million in the prior year, reflecting a notable improvement in operational efficiency. Net earnings from continuing operations were $124.1 million, a substantial increase from $76.4 million in the previous fiscal year.
The company experienced a shift in its revenue streams, with notable growth in the product segment, which saw sales increase by 23.8% to $1.98 billion. The professional services segment also grew by 19.4%, while managed services increased by 10.6%. This growth was primarily driven by increased demand from large enterprise customers across various sectors, including telecommunications, media, healthcare, and financial services. However, sales to state and local government (SLED) customers decreased by 7.4%, indicating a potential area of concern for future revenue.
Strategically, ePlus completed the sale of its domestic financing business in June 2025, allowing the company to focus on its core technology solutions. This divestiture has led to a restructuring of its operations into three reportable segments: product, professional services, and managed services. The company also expanded its workforce, employing 2,148 individuals as of March 31, 2026, a slight decrease from 2,151 the previous year, reflecting ongoing adjustments in response to market conditions.
Looking ahead, ePlus anticipates continued growth driven by the increasing adoption of cloud services and AI technologies. The company is actively investing in its managed services portfolio to address customer challenges related to cloud adoption and operational complexity. However, ePlus acknowledges potential risks, including supply chain constraints and economic uncertainties, which could impact its ability to meet customer demands and maintain profitability. The company remains committed to enhancing its service offerings and expanding its market presence, particularly in international markets.
About EPLUS INC
ePlus Inc. provides integrated IT solutions, including hardware, software, professional, and managed services, to commercial, government, and educational markets. Its offerings span security, cloud, data center, networking, AI, and collaboration technologies, supported by vendor partnerships and advanced certifications. The company also offers financing for IT equipment and services, serving middle to large enterprises globally with a focus on innovation, customer trust, and comprehensive technology management.
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