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Eplus (MLE) Q2 2027 Earnings Report

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DE:MLE Q2 2027 EPS Results

Actual EPS
EUR 1.63
Consensus EPS
EUR 1.32
Beat/Miss
Beat by +EUR 0.31
One Year Ago EPS
EUR 1.37

DE:MLE Q2 2027 Revenue Results

Actual Revenue
EUR 598.03M
Expected Revenue
EUR 569.53M
Beat/Miss
Beat by +EUR 28.49M
YoY Revenue Growth
+9.71%

Earnings Announcement Details

Quarter
Q2 2027
Date
11/05/2026
Time
After Close
Conference Call
Thursday, November 5, 2026
DE:MLE Upcoming Earnings

Eplus's next earnings date is estimated for February 9, 2027, based on past reporting schedules.

Q2 2027 Earnings Call Audio

DE:MLE Q2 2027 Earnings Call
0:00 / 0:00

Q2 2027 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2027 Earnings Call Summary

Q2 2027
Earnings Call Date:Nov 05, 2026|% Change Since:19.18%|
Earnings Call Sentiment|Positive

The call was strongly positive. Management reported broad-based revenue and profitability growth, record gross billings, a substantial increase in open orders, strong AI, data center, cloud, security, and managed services demand, a healthy balance sheet, capital returns, and raised fiscal 2027 guidance. The main challenges were declining professional services revenue and margins, project delays, higher third-party costs and operating expenses, high-end compute supply constraints, and some open orders shifting into fiscal 2028, but these issues did not outweigh the reported growth and improved outlook.

Company Guidance

For fiscal 2027, ePlus raised its guidance and now looks for upper single-digit growth in both net sales and gross profit, with adjusted EBITDA expected to grow in the low double digits, reflecting operating leverage inherent in the business; management expects the trend of operating income and adjusted EBITDA exceeding the growth of net sales and gross profit to continue in the second half, expects a significant portion of inventory to go out in the second half of the fiscal year, and said a good portion of open orders will push into FY 2028.

  • Strong Second-Quarter Revenue and Profitability GrowthSecond-quarter net sales increased 9.7% to $667.9 million, gross profit increased 11.2% to $180.3 million, operating income increased 15.8% to $56.5 million, and adjusted EBITDA increased 14.3% to $67.1 million. Adjusted EBITDA growth outpaced net sales growth, reflecting improved operating leverage.
  • Record Gross Billings and Expanding Open OrdersQuarterly gross billings reached a record $1.07 billion, up 4.3% year-over-year. Open orders were up nearly $750 million year-over-year and exceeded $1.8 billion in total, led by higher-end networking, data center activity, AI-related demand, and increased overall customer activity.
  • Raised Fiscal 2027 GuidanceFollowing strong first-half performance, healthy demand, and growth in bookings and open orders, management raised fiscal 2027 guidance to upper single-digit growth in both net sales and gross profit, with adjusted EBITDA expected to grow in the low double digits.
  • Product Segment GrowthProduct segment net sales increased 12.8% year-over-year to $547.1 million. Growth was led by data center and cloud, with additional strength in security and collaboration.
  • Data Center and Cloud MomentumData center and cloud net sales grew 39.2% during the quarter. ePlus secured several multimillion-dollar wins across data center, cloud, security, and networking, fueled by AI and IT modernization initiatives.
  • Increasing AI-Related Customer EngagementThe company reported a significant increase in AI-related customer engagements, ranging from use-case validation to purchasing and implementation. Customers are seeking help designing, deploying, and securing infrastructure for increasingly complex workloads, contributing to the pipeline and buildup of open orders.
  • Security Business GrowthSecurity product net sales increased 10.3% during the quarter. On a trailing 12-month basis, security products represented 22.9% of gross billings. Management also reported opportunities across both security products and services as customers address complex IT environments and AI-related threats.
  • Managed Services ExpansionManaged services net sales increased 11.9% to $53.1 million in the quarter, driven by demand for data center-related managed services, including storage as a service and enhanced maintenance services. Management stated that these recurring services support longer-term customer relationships and recurring revenue.
  • Gross Margin ExpansionConsolidated gross margin expanded 40 basis points to 27%. Product segment gross margin increased 130 basis points to 25.8%, reflecting a shift in product mix and increased revenue from third-party maintenance and subscriptions.
  • Broad-Based Customer and End-Market ExposureManagement said growth was largely organic and spread across a diversified customer base. On a trailing 12-month basis, telecom, media, and entertainment accounted for 26% of net sales, healthcare 14%, technology 13%, SLED 12%, financial services 12%, and other end markets 23%.
  • Daymark Solutions AcquisitionePlus acquired Daymark Solutions during the quarter. The acquisition broadens the company's presence in the Northeast, adds Microsoft Tier 1 CSP certification and expertise in highly regulated and data-intensive industries, and is expected by management to complement existing offerings and create opportunities for integrated solutions.
  • Strategic Focus on Higher-Growth Technology AreasAfter exiting the domestic finance business last year, ePlus is focused on AI, cloud, data centers, security, and networking. Management identified AI as an important catalyst for technology investment and a significant long-term growth driver.
  • Services Capabilities and Industry RecognitionePlus became the first company in North America to achieve Everpure Ambassador status, was named NetApp North American Flash Partner of the Year, and became a certified services partner in Anthropic's Claude Partner Network. Management also highlighted continued investment in field Chief Technology Officer and principal technologist teams.
  • Healthy Balance Sheet and Capital ReturnsCash and cash equivalents totaled $380.9 million at quarter end, providing flexibility for organic investment, strategic acquisitions, dividends, and share repurchases. ePlus repurchased approximately 148,000 shares during the quarter and approximately 400,000 shares in the first half for nearly $34 million, and declared a $0.27-per-share dividend payable December 16, 2026.
  • Year-to-Date Adjusted Earnings GrowthFor the first six months of fiscal 2027, net sales increased 5.2% to $1.32 billion, gross profit increased 5% to $331.6 million, non-GAAP earnings per share increased 5.1% to $3.11, and adjusted EBITDA increased 3.2% to $114.9 million.
  • Operating Systems and Process ModernizationThe company is modernizing internal systems and processes, including leveraging AI to improve efficiency and support greater operating leverage over time.

DE:MLE Earnings History

DE:MLE earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 09, 20272027 (Q3)1.45-1.3――
Nov 05, 20262027 (Q2)1.321.631.3718.95% (+0.26)
Aug 04, 20262027 (Q1)1.061.151.131.59% (+0.02)
May 28, 20262026 (Q4)0.880.900.99-9.91% (-0.10)
Feb 04, 20262026 (Q3)0.901.300.9536.79% (+0.35)
Nov 06, 20252026 (Q2)0.851.371.2212.50% (+0.15)
Aug 07, 20252026 (Q1)0.991.131.0111.50% (+0.12)
May 22, 20252025 (Q4)0.770.990.8319.35% (+0.16)
Feb 05, 20252025 (Q3)1.090.951.06-10.17% (-0.11)
Nov 12, 20242025 (Q2)1.251.221.25-2.86% (-0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed