TSS Q2 revenue falls 20% and misses analyst estimates
TSSI•Q2 revenue misses estimates
TSS said second-quarter revenue fell 20% and missed analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Miss | $35.14 mln | $47.10 mln (3 Analysts) |
| Q2 EPS | $0.05 | ||
| Q2 Net Income | $1.43 mln | ||
| Q2 Basic EPS | $0.05 |
Outlook and analyst coverage
TSS maintained its 2026 adjusted EBITDA outlook at the upper end of the $20 mln to $22 mln range.
The company expects the second half of 2026 to be stronger than the first half and anticipates accelerated growth in systems integration revenue in H2 2026.
The current average analyst rating on the shares is "buy," with 3 "strong buy" or "buy" recommendations, no "hold" and no "sell" or "strong sell."
Wall Street's median 12-month price target for TSS Inc is $16.00, about 32.1% above its August 12 closing price of $12.11.
The stock recently traded at 42 times the next 12-month earnings versus a P/E of 57 three months ago.
Investment in next-gen AI data center tech
TSS began a $17 mln investment in next-gen AI data center technology, aiming to boost future integration revenue.
Revenue mix shifts toward higher-margin services
The US data center services firm said lower total revenue reflected a move away from lower-margin procurement to higher-margin systems integration and facilities management.
