ePlus Q2 net sales rise on AI-driven demand; lifts FY outlook
PLUS•ePlus fiscal second-quarter net sales rose 9.7% year over year to $667.9 million, while adjusted EPS increased 19% to $1.82. The company raised fiscal 2027 guidance, expecting upper-single-digit growth in net sales and gross profit and low-double-digit adjusted EBITDA growth.
1. Quarterly results
ePlus reported fiscal second-quarter net sales of $667.9 million, up 9.7% year over year, and gross profit of $180.3 million, with a gross margin of 27%. Adjusted EPS rose 19% to $1.82.
2. Raised outlook
The company raised its fiscal 2027 guidance to upper-single-digit growth in net sales and gross profit and expects adjusted EBITDA growth in the low double digits. It cited AI adoption, data center demand and cybersecurity as drivers of long-term growth.
3. Revenue drivers
Higher product sales, particularly in cloud, security, collaboration and other products, drove the net sales increase. Managed services revenue rose 11.9%, mainly from increased cloud managed services, while professional services revenue and margin declined due to project delays from retail customers.
