olivLaw · US equity research
ePlus inc. PLUS
Wholesale-Computers & Peripheral Equipment & Software · SIC 5045 · Vertical: Wholesale-Computers & Peripheral Equipment & Software (SIC 5045)
ePlus inc. is an IT solutions provider that combines products, professional services and managed services across AI, cloud, security and networking. For the first quarter of fiscal 2027 the company reported net sales of 649.1 million USD, and management reaffirmed mid-single-digit growth guidance, making the shift toward recurring revenue a key point to follow.
At the close of 04 Nov 2026, ePlus inc. (PLUS) stock was 90.47 USD (+0.69% on the day), with market capitalisation 2.4 bn USD, P/E 19.0 on diluted EPS of 4.76 USD over the last 12 months, dividend yield 0.83%, beta 0.98, 52-week range 73.37–97.05 USD. Latest reported quarter (Q1 2027): revenue of 649.1 m USD (+1.0% YoY), net income of 30.3 m USD (−28.9% YoY), diluted EPS 1.16 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 42.7
- weak (30–45)
- Bollinger (20, 2)
- 89.49 – 98.24
- in the lower half of the band · %B 0.11 · band width 9.3%
- SMA 50 / 200
- 91.89 / 85.81
- mixed trend
- MACD (12, 26, 9)
- -0.18 / 0.56
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −2.7% | −1.1% | −1.6 pp | — |
| 3 months | −4.3% | −0.5% | −3.9 pp | — |
| 6 months | +8.4% | +4.4% | +4.0 pp | — |
| Year to date | +3.2% | +12.3% | −9.2 pp | — |
| 1 year | +23.4% | +13.5% | +9.9 pp | +38.6% |
| 3 years | +39.2% | +76.4% | −37.2 pp | +102.0% |
| 5 years | +47.8% | +63.7% | −15.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 493.4 m | 493.2 m | 477.9 m | 642.8 m | 608.8 m | 614.8 m | 581.6 m | 649.1 m |
| Cost of revenue | 366.1 m | 368.1 m | 345.1 m | 489.1 m | 446.7 m | 456.1 m | 434.5 m | 497.8 m |
| Gross profit | 127.3 m | 125.1 m | 132.9 m | 153.7 m | 162.1 m | 158.7 m | 147.1 m | 151.3 m |
| SG&A | 94.5 m | 100.9 m | 100.6 m | 103.7 m | 106.5 m | 108.7 m | 103.3 m | 106.6 m |
| Operating income | 27.0 m | 16.5 m | 24.8 m | 42.9 m | 48.8 m | 43.5 m | 37.6 m | 38.8 m |
| Depreciation & amortisation | 5.8 m | 7.7 m | 7.8 m | 7.4 m | 6.8 m | 6.5 m | 6.4 m | 6.2 m |
| Interest expense | — | 517.0 k | -1.6 m | — | — | — | — | — |
| Pre-tax income | 27.3 m | 19.9 m | 25.7 m | 43.6 m | 54.0 m | 45.6 m | 37.0 m | 42.0 m |
| Income tax | 7.5 m | 5.4 m | 7.8 m | 11.5 m | 15.8 m | 12.2 m | 11.6 m | 11.7 m |
| Net income | 31.3 m | 24.1 m | 21.8 m | 42.6 m | 34.9 m | 35.1 m | 25.0 m | 30.3 m |
| Diluted EPS | 1.17 | 0.91 | 0.82 ≈ | 1.61 | 1.32 | 1.33 | 0.95 ≈ | 1.16 |
| Operating cash flow | -21.6 m ≈ | 65.7 m ≈ | 160.9 m | -99.0 m | -34.8 m ≈ | -87.4 m ≈ | 105.0 m | 76.5 m |
| Capex | — | — | 1.9 m | 835.0 k | — | — | 1.2 m | 853.0 k |
| Dividends paid | — | 0 ≈ | 0 | 0 | 6.6 m ≈ | 6.5 m ≈ | 6.5 m | 7.1 m |
| Share repurchases | 12.0 m ≈ | 9.9 m ≈ | 13.5 m | 3.3 m | 4.0 m ≈ | 17.0 m ≈ | 6.3 m | 25.5 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 97 percentile of its own 39-quarter history (min 6.1, median 11.4, max 23.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.4 bn | 1.6 bn | 1.6 bn | 1.8 bn | 2.1 bn | 2.2 bn | 2.0 bn | 2.4 bn |
| Revenue YoY | −3.3% | +15.7% | −1.3% | +16.1% | +13.5% | +5.3% | −8.2% | +22.1% |
| Net income | 63.2 m | 69.1 m | 74.4 m | 105.6 m | 119.4 m | 118.0 m | 104.6 m | 132.6 m |
| Net income YoY | +14.6% | +9.3% | +7.7% | +41.9% | +13.0% | −1.2% | −11.4% | +26.8% |
| Diluted EPS | 4.65 | 2.57 | 2.77 | 3.93 | 4.48 | 4.41 | 3.93 | 5.03 |
| Diluted EPS YoY | +17.7% | −44.7% | +7.8% | +41.9% | +14.0% | −1.6% | −10.9% | +28.0% |
| net % | 4.6% | 4.3% | 4.7% | 5.8% | 5.8% | 5.4% | 5.2% | 5.4% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | 240.8 m | 296.9 m | -120.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 410.8 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.1 bn USD
- Total assets
- 1.8 bn USD
- Debt / equity
- unavailable
- Current ratio
- 2.24x
- ROE
- 13.0%
- ROA
- 7.2%
- FCF margin
- -4.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.6 bn | 1.8 bn | 2.1 bn | 2.2 bn | 2.0 bn | 2.4 bn | SEC (XBRL)· 28 May 2026verified |
| Cost of revenue | 1.2 bn | 1.4 bn | 1.6 bn | 1.7 bn | 1.5 bn | 1.8 bn | SEC (XBRL)· 28 May 2026verified |
| Gross profit | 393.6 m | 461.0 m | 517.5 m | 511.7 m | 512.1 m | 616.1 m | SEC (XBRL)· 28 May 2026verified |
| SG&A | 271.3 m | 297.1 m | 333.5 m | 355.6 m | 386.7 m | 423.4 m | SEC (XBRL)· 28 May 2026verified |
| Operating income | 106.3 m | 147.3 m | 166.2 m | 133.8 m | 99.7 m | 166.1 m | SEC (XBRL)· 28 May 2026verified |
| Depreciation & amortisation | 20.0 m | 24.3 m | 18.6 m | 22.5 m | 27.2 m | 27.6 m | SEC (XBRL)· 28 May 2026verified |
| EBITDA | 126.3 m ≈ | 171.6 m ≈ | 184.8 m ≈ | 156.3 m ≈ | 126.9 m ≈ | 193.8 m ≈ | SEC (XBRL)· 28 May 2026derived |
| Interest expense | 2.0 m | 1.9 m | 4.1 m | 3.8 m | 0 | 0 | SEC (XBRL)· 28 May 2026verified |
| Pre-tax income | 106.9 m | 146.9 m | 163.0 m | 135.2 m | 106.1 m | 173.4 m | SEC (XBRL)· 28 May 2026verified |
| Income tax | 32.5 m | 41.3 m | 43.6 m | 37.9 m | 29.7 m | 49.3 m | SEC (XBRL)· 28 May 2026verified |
| Net income | 74.4 m | 105.6 m | 119.4 m | 118.0 m | 104.6 m | 132.6 m | SEC (XBRL)· 28 May 2026verified |
| Diluted EPS | 2.77 | 3.93 | 4.48 | 4.41 | 3.93 | 5.03 | SEC (XBRL)· 28 May 2026verified |
| Weighted average diluted shares | 26.8 m | 26.9 m | 26.7 m | 26.7 m | 26.7 m | 26.4 m | SEC (XBRL)· 28 May 2026verified |
| Dividend per share | — | — | — | — | — | 0.75 | SEC (XBRL)· 28 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 129.6 m | 155.4 m | 103.1 m | 253.0 m | 389.4 m | 410.8 m | SEC (XBRL)· 28 May 2026verified |
| Receivables | 391.6 m | 430.4 m | 504.1 m | 644.6 m | 508.3 m | 650.0 m | SEC (XBRL)· 04 Aug 2026verified |
| Inventories | 70.0 m | 155.1 m | 243.3 m | 139.7 m | 120.4 m | 200.9 m | SEC (XBRL)· 28 May 2026verified |
| Current assets | 777.6 m | 897.5 m | 1.1 bn | 1.3 bn | 1.4 bn | 1.4 bn | SEC (XBRL)· 28 May 2026verified |
| Property, plant & equipment, net | 7.4 m | 7.9 m | 11.9 m | 12.9 m | 15.6 m | 12.8 m | SEC (XBRL)· 28 May 2026verified |
| Goodwill | 126.6 m | 126.5 m | 136.1 m | 161.5 m | 202.9 m | 202.9 m | SEC (XBRL)· 28 May 2026verified |
| Intangibles (excl. goodwill) | 38.6 m | 27.3 m | 25.0 m | 44.1 m | 82.0 m | 61.3 m | SEC (XBRL)· 28 May 2026verified |
| Total assets | 1.1 bn | 1.2 bn | 1.4 bn | 1.7 bn | 1.9 bn | 1.8 bn | SEC (XBRL)· 28 May 2026verified |
| Accounts payable | 165.2 m | 136.2 m | 220.2 m | 315.7 m | 323.9 m | 264.6 m | SEC (XBRL)· 28 May 2026verified |
| Long-term debt | — | — | — | — | 38.8 m | — | SEC (XBRL)· 22 May 2025verified |
| Current liabilities | 459.4 m | 460.0 m | 561.3 m | 657.0 m | 799.1 m | 638.1 m | SEC (XBRL)· 28 May 2026verified |
| Total liabilities | 514.4 m | 505.5 m | 632.6 m | 751.7 m | 908.4 m | 732.0 m | SEC (XBRL)· 28 May 2026verified |
| Equity | 562.4 m † | 660.7 m † | 775.7 m † | 897.4 m † | 970.7 m † | 1.1 bn † | SEC (XBRL)· 28 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 129.5 m | -20.6 m | -15.4 m | 248.4 m | 302.1 m | -116.2 m | SEC (XBRL)· 28 May 2026verified |
| Capex | — | — | — | 7.7 m | 5.3 m | 4.4 m | SEC (XBRL)· 28 May 2026verified |
| Free cash flow | — | — | — | 240.8 m ≈ | 296.9 m ≈ | -120.7 m ≈ | SEC (XBRL)· 28 May 2026derived |
| Investing cash flow | -35.8 m | -1.3 m | -18.9 m | -62.0 m | -128.9 m | 159.8 m | SEC (XBRL)· 28 May 2026verified |
| Financing cash flow | -49.8 m | 47.2 m | -21.0 m | -36.6 m | -37.6 m | -22.9 m | SEC (XBRL)· 28 May 2026verified |
| Dividends paid | — | — | — | 0 | 0 | 19.7 m | SEC (XBRL)· 28 May 2026verified |
| Share repurchases | 6.9 m | 13.6 m | 7.2 m | 9.9 m | 46.9 m | 30.6 m | SEC (XBRL)· 28 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 50 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet100
- Growth37
- Quality60
- Returns69
- Valuation35
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 65.71 – 81.72 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E65.71 – 81.72 (Mid 70.63)4 companies used · median multiple 14.8x · quartiles 13.8x – 17.2xCNXN, INGM, SCSC, SNX
- Dividend discount (DDM)outside the aggregate9.86 – 13.25 (Mid 11.31)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 50/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 5.1% | 100 (vs peers) | 10% |
| FCF conversion · Quality | 43.7% | 20 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 5.7% | 48 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 3.9% | 26 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 19.0x | 40 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 2.3% | 29 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3.4% | 48 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 48.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth37/100 · 2/2 factors with a value
- Quality60/100 · 2/3 factors with a value
- Returns69/100 · 2/2 factors with a value
- Valuation35/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ePlus inc. (PLUS). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.4 bn USD in 2026; YoY growth 22.1%; net margin 5.1%; ROE 12.0%.
The estimated value range is 65.71–81.72 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 70.63 USD, the price of 90.47 USD leaves a potential of -21.9% (value / price − 1) and a margin of safety of -28.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 50/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 5.1%
- Current ratio: 2.1x
- Payout ratio (FCF): 48.8%
What contradicts it
- FCF conversion: 43.7%
- EPS CAGR 3Y: 3.9%
- FCF yield: 2.3%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Wholesale-Computers & Peripheral Equipment & Software (SIC 5045) · same industry (4-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SNXTd Synnex Corporation | 18.4 bn | 14.0 | 14.9% | 1.8% | +6.9% | +51% / +134% |
| INGMIngram Micro Holding Corp | 6.0 bn | 13.2 | 10.9% | 0.8% | +9.5% | +22% / unavailable |
| PLUSePlus inc. | 2.4 bn | 19.0 | 12.0% | 5.1% | +22.1% | +23% / +39% |
| CNXNPc Connection, Inc. | 2.2 bn | 21.7 | 10.9% | 3.3% | +2.5% | +51% / +47% |
| SCSCScanSource, Inc. | 1.1 bn | 15.7 | 8.7% | 2.4% | +6.1% | +39% / +70% |
| CLMBClimb Global Solutions, Inc. | 803.2 m | 33.8 | 19.5% | 3.1% | +40.1% | +70% / +261% |
| CGTLCreative Global Technology Holdings Limited | 56.2 m | — | -84.9% | -63.2% | −40.6% | −79% / unavailable |
| PNSkycorp Solar Group Limited | — | — | -14.9% | -4.3% | +27.0% | −85% / unavailable |
1- and 3-year price returns: for PLUS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 54.56 Total return -39% · Per year -39% | 96.41 Total return 7% · Per year 7% | 145.14 Total return 61% · Per year 61% |
| 3 years | 54.25 Total return -38% · Per year -15% | 107.73 Total return 22% · Per year 7% | 177.89 Total return 100% · Per year 26% |
| 5 years | 53.94 Total return -37% · Per year -9% | 120.38 Total return 38% · Per year 7% | 218.04 Total return 148% · Per year 20% |
- Exit P/E± 26.93
- Net margin± 18.85
- Annual revenue growth± 15.30
- Annual dilution± 1.58
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
ePlus inc. is an IT solutions provider that combines products, professional services and managed services across AI, cloud, security and networking. For the first quarter of fiscal 2027 the company reported net sales of 649.1 million USD 3, and management reaffirmed mid-single-digit growth guidance, making the shift toward recurring revenue a key point to follow.
SWOT
Strengths
- Broad portfolio of technology partners and top-level certifications that allow multi-vendor solutions tailored to customers.
- Growing managed services business with an increasingly important recurring revenue base.
- Solid financial position with consistent cash generation and capacity for investment and capital returns.
Weaknesses
- Dependence on a few large customers and key vendors, which increases concentration exposure.
- Gross margins under pressure in the products segment and in professional services.
- Revenue from recurring models is recognized more slowly, which can affect short-term results.
Opportunities
- Demand for AI infrastructure, data centers and cybersecurity could generate new orders.
- Expanding managed services and cloud offerings could raise recurring revenue.
- Acquisitions and regional partnerships could extend coverage in targeted market segments.
Threats
- The chip shortage and long delivery times could affect sales and customer relationships.
- Price pressure from competitors and online platforms could reduce margins.
- Vendors selling directly can bypass the distribution channel and limit the company's revenue.
Risks
- Customer concentrationhigh
A reduction in purchases from large customers could affect results, and contracts generally carry no volume commitments and can be terminated on short notice 1.
- Vendor dependencehigh
A substantial part of revenue depends on a few vendors, and supply interruptions or policy changes at those vendors can affect sales 1.
- Data securitymedium
The company handles sensitive customer and employee data, and a cyberattack or breach could generate liability and reputational damage 1.
- Competitive pressuremedium
Competitors offering lower prices or better terms could limit the company's ability to maintain margins 1.
- Supply chainmedium
The chip shortage and transport delays could prolong delivery times and lead to lost orders 2.
Investment thesis
What would need to be true (bull case)
- If demand for AI, security and cloud is sustained, the open orders reported at quarter end could support a stronger second half.
- Growth in managed services and recurring revenue could make results more predictable and less sensitive to purchasing cycles.
- The cash position and capacity for capital returns give the company flexibility for investment and acquisitions.
What would break the thesis
- Dependence on a few large customers and vendors remains a vulnerability, and losing a major contract could quickly affect sales.
- The chip shortage and price pressure could compress margins, especially in products and professional services.
- If customers delay purchases because of economic uncertainty, the announced growth could fall short of expectations.
What to watch
- Trend in open orders and delivery lead timesQ2 2027
- Gross margin in products and professional servicesQ2 2027
- Growth pace of managed servicesQ2 2027
- Reaffirmation of fiscal 2027 growth guidancenext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
ePlus inc. has operated since 1990 as a reseller and integrator of technology for middle market and large enterprises, as well as state and local government and education institutions, serving 4,200 customers 1. The company runs three reportable segments: products, professional services and managed services, and works with major partners such as Cisco, Dell, HPE, NetApp and Microsoft 1. For fiscal 2026, net sales were 2442.5 million USD 1, and part of its revenue is recognized on a net basis.
The offering includes hardware, software and third-party maintenance sales, along with managed services for infrastructure, cloud, security and collaboration, plus AI advisory and deployment services. The company also manages storage-as-a-service and cloud disaster recovery on consumption and subscription models, which gradually changes the revenue profile.
The customer base is concentrated: in fiscal 2026 Verizon Communications Inc. accounted for a significant share of net sales 1, and dependence on a small number of vendors, especially Cisco, remains a notable risk factor 1.
Segments
Professional services
This segment covers architecture, deployment, staff augmentation and cloud and security consulting. In the first quarter of fiscal 2027 revenues declined slightly and gross margin fell, which the company attributed to a shift in services mix 3.
Market context
The company describes the IT solutions market as highly competitive and sensitive to macroeconomic cycles 1. Demand is supported by artificial intelligence, security and data center modernization, but supply chains are strained by a worldwide shortage of memory chips 2, which could prolong delivery times.
Customers are increasingly moving from upfront purchases toward subscription and consumption models, which lengthens revenue recognition periods 2. For the company, part of its growth depends on converting product sales into recurring services.
Trends
- Memory chip shortagemixed
Demand for AI-ready products has created a worldwide shortage of memory chips and rapid price increases, and the company expects extended lead times and higher prices to persist for at least the next few quarters 2. The effect is mixed: it can limit shipments but may raise the value of open orders.
- Shift to recurring modelstailwind
The IT industry is moving from upfront purchases to subscription and consumption models, which increases the importance of recurring revenue and managed services 2. The trend favors the managed services segment but can slow revenue recognition in the short term.
- Demand for AI and securitytailwind
Customers' top priorities include AI, security and cloud solutions 2. If investment in these areas continues, it could support orders for the company's products and consulting services.
- Economic and trade uncertaintyheadwind
Government policy, tariffs, inflation and interest rates may influence customers' willingness to spend on IT 1. If these conditions worsen, technology budgets could be reduced, which would weigh on order volumes.
Competitive position
Competition includes national and regional resellers, consulting firms, service providers and vendors that may sell directly to customers 1. Many competitors compete on price, and online marketplaces and cloud providers can pressure the company's margins 1.
Some competitors have greater financial resources, brand recognition and vendor relationships 1. The company says its differentiation comes from managed services and its consultative approach, not only from product pricing 1.
- Insight EnterprisesNSIT
Technology integrator and reseller that falls in the IT reselling category described in the source and competes for mid-size and large enterprise clients.
- Distributors such as Ingram Micro and TD SYNNEX
The source names these distributors as main product suppliers and, in some cases, as entities that can resell directly to customers.
- Cloud providers and online marketplaces
The source states that online marketplaces and hyperscale cloud providers compete with the company and may offer lower prices.
- Vendors selling directly
The source warns that vendors may sell directly to end users, bypassing channel partners such as the company.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- ePlus (PLUS) Expands Its Microsoft Footprint Even As Profit Margins SlipYahoo Finance — News · 03 Sept 2026 · EN
- Why ePlus (PLUS) Could Benefit From Rising Corporate IT SpendingYahoo Finance — News · 01 Sept 2026 · EN
The latest news item in our archive is from 03 Sept 2026; the newest SEC filing is from 14 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report14 Sept 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Current report04 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Proxy statement24 Jul 2026
- Current report06 Jul 2026Departure or appointment of officers · Financial statements and exhibits
- Annual report28 May 2026
- Current report28 May 2026Results of operations · Other events · Financial statements and exhibits
- Current report17 Feb 2026Amendments to articles or bylaws · Financial statements and exhibits
- Quarterly report04 Feb 2026
- Current report04 Feb 2026Results of operations · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / ePlus inc. · 28 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / ePlus inc. · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / ePlus inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.