Should ePlus' (PLUS) Upbeat Earnings and Dividend Hike Prompt Reassessment by Investors?

• On November 6, 2025, ePlus announced strong second quarter earnings results, raised its fiscal year 2026 earnings guidance, and declared a quarterly dividend of US$0.25 per share payable on December 17, 2025, to shareholders of record as of November 25.
• The improved outlook reflects management’s ongoing confidence following double-digit year-over-year growth in revenue, gross profit, and net earnings for the second quarter.
• We'll explore how ePlus's raised full-year guidance, after robust Q2 results, could shift the company's previously cautious investment narrative.

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ePlus Investment Narrative Recap

To be a shareholder in ePlus, you have to believe in the company’s ability to drive consistent revenue and profit growth from accelerating demand for IT infrastructure, security, and digital transformation. The latest quarterly earnings beat, dividend announcement, and improved fiscal year guidance bring momentum to this outlook but do not eliminate the short-term risk of revenue volatility tied to large, project-based customer deals, this risk remains a key factor to monitor.

Among the recent announcements, ePlus’s raised full-year guidance stands out as particularly relevant. By projecting mid-teens growth in both net sales and gross profit, along with increased adjusted EBITDA, the company is signaling a strong expectation of continued operating leverage and profitability, reinforcing the positive catalyst of expanding demand for managed and recurring services.

Yet in contrast, investors should also be aware that customer concentration in key verticals still leaves ePlus exposed if spending patterns unexpectedly shift...

Read the full narrative on ePlus (it's free!)

ePlus' narrative projects $2.2 billion revenue and $78.4 million earnings by 2028. This requires a -0.2% yearly revenue decline and a $32.5 million decrease in earnings from $110.9 million today.

Uncover how ePlus' forecasts yield a $92.00 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Community estimates for ePlus’s fair value range widely, from US$34.92 to US$92, with just 2 individual perspectives submitted to Simply Wall St Community. Despite positive momentum from improved guidance, recurring revenue expansion will remain crucial as opinion on the company’s future varies greatly.

Explore 2 other fair value estimates on ePlus - why the stock might be worth as much as 25% more than the current price!

Build Your Own ePlus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ePlus research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free ePlus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ePlus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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