Why ePlus (PLUS) Is Up 6.3% After Raising 2026 Growth Guidance and Reporting Strong Results

• ePlus announced strong financial results for the quarter and six months ended September 30, 2025, with revenue rising to US$608.83 million for the quarter and net income reaching US$34.86 million, accompanied by a quarterly dividend declaration of US$0.25 per share.
• The company also raised its fiscal year 2026 guidance, expecting mid-teens growth in net sales and gross profit, along with a higher increase in adjusted EBITDA, reflecting ongoing operational momentum.
• We'll assess how ePlus's raised full-year outlook, driven by broad-based growth, impacts the current investment narrative for the company.

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ePlus Investment Narrative Recap

To be a shareholder in ePlus right now, you need to believe in its ability to sustain broad-based growth in IT services, managed solutions, and AI-led infrastructure, despite prior reliance on lumpy, large enterprise deals. The recent raised guidance highlights management’s confidence in ongoing demand and helps support the short-term growth catalyst, but it does not materially change the chief risk: unpredictable future revenue streams if large deals are not repeated or recurring growth fails to offset volatility.

Among the latest announcements, the increase in full-year guidance for net sales and adjusted EBITDA stands out most, as it directly reinforces the company's ability to deliver against its most important growth catalysts. Investors now have increased clarity around management’s expectations for operating leverage and near-term expansion, with stronger momentum supporting the shift toward a services-driven business model.

But for investors, it’s critical to remember that this momentum may face challenges if large, one-time customer projects do not recur as expected...

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

ePlus' outlook anticipates $2.2 billion in revenue and $78.4 million in earnings by 2028. This reflects a -0.2% annual revenue decline and a decrease of $32.5 million in earnings from the current $110.9 million level.

Uncover how ePlus' forecasts yield a $108.00 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for ePlus range from US$39.11 to US$108 across two perspectives. Investors should also consider that strong revenue visibility from raised guidance could be offset by future unpredictability if major project wins are not sustained.

Explore 2 other fair value estimates on ePlus - why the stock might be worth as much as 20% 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 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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