ePlus Inc. rides enterprise AI: revenue +24.6%, earnings double, raises outlook

ePlus rides enterprise AI wave

AI demand drives outsized revenue and margin expansion

HERNDON, Va. — ePlus Inc. posts strong double‑digit growth as demand for AI infrastructure and modernization fuels its technology services and solutions business. For the third fiscal quarter ended Dec. 31, 2025, consolidated net sales rise 24.6% to $614.8 million while consolidated gross profit climbs 26.8% to $158.7 million, lifting gross margin to 25.8% from 25.4% a year earlier. The company sees broad-based strength across cloud, compute, storage and networking as enterprises accelerate AI-related projects, and management says that mix drives higher margin capture and operating leverage.

Earnings show pronounced improvement as operating leverage benefits the company’s services and solutions delivery model. Net earnings from continuing operations more than double, up 129.3% to $33.4 million in the quarter, and adjusted EBITDA rises 97.4% to $53.4 million; diluted earnings per share from continuing operations increase 130.9% to $1.27 (non‑GAAP diluted EPS $1.45). For the first nine months of fiscal 2026, net sales grow 22.2% to $1.86 billion, consolidated gross profit rises 23.7% to $469.0 million, and nine‑month net earnings from continuing operations increase 68.5% to $98.7 million, reflecting sustained demand from enterprise and mid‑market customers.

Chief Executive Mark Marron attributes the momentum to customers prioritizing modernization and AI deployments that require integrated cloud, compute, storage and networking solutions. The company is leveraging its systems integrator and services capabilities to capture larger deals and a higher‑value mix, which management says underpins the decision to raise full‑year fiscal 2026 guidance and to return capital to shareholders through a quarterly dividend.

Financing unit sale completes

ePlus also confirms it completed the sale of its domestic financing business on June 30, 2025, a move that the company presents as sharpening its focus on core technology solutions and services. Management frames the divestiture as simplifying operations and improving capital allocation for strategic growth areas.

Dividend declared and guidance lifted

Alongside results, ePlus announces a quarterly common stock dividend of $0.25 per share and raises fiscal 2026 outlook, citing continued tailwinds from AI‑related projects and enterprise modernization spending that support sustained revenue and margin expansion.