ePlus inc. announced record-setting financial results for the first quarter of fiscal year 2026, with consolidated net sales increasing 19.0% to $637.3 million, surpassing analyst estimates of $523.9 million. The company achieved its strongest gross billings and net sales quarter in history, driven by double-digit growth across key financial metrics. Non-GAAP diluted earnings per share from continuing operations reached $1.26, exceeding the $1.06 expectation.
The services business was a standout, with revenues increasing nearly 50% year-over-year, including a 92.4% rise in professional services and a 9.0% increase in managed services. Product sales also grew by 13.9% to $521.0 million, led by strong performance in cloud and security offerings. Consolidated gross profit increased 16.8% to $148.2 million, and Adjusted EBITDA rose 19.6% to $46.7 million.
Reflecting this strong performance and confidence in its outlook, ePlus raised its fiscal year 2026 guidance, now expecting net sales and gross profit growth in the upper single digits, and Adjusted EBITDA growth in the mid-teens. The Board of Directors also declared the company's first-ever quarterly cash dividend of $0.25 per common share, payable on September 17, 2025. Additionally, a new share repurchase program was authorized for up to 1.5 million shares over a 12-month period, commencing August 11, 2025, further demonstrating a balanced capital allocation strategy.
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