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what it is
EPlus helps companies, schools, hospitals, and governments buy and manage messy enterprise tech so their systems keep working.
how it gets paid
Last year Eplus made $2.0B in revenue.
why growth slowed
Revenue fell 2.9% last year. Gains at these groups were partially offset by an 8% decline in revenues at the professional services group.
what just happened
PLUS delivered $1.45 in EPS, beating the $0.90 estimate by 61.1% on a strong holiday-quarter sales print.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
15.0x trailing p/e — the market's not buying it — or you found a deal
1.7% dividend yield — cash in your pocket every quarter
11.0% return on capital — nothing to write home about
xvary composite: 62/100 — average
What they do
ePlus helps companies, schools, hospitals, and governments buy and manage messy enterprise tech so their systems keep working.
This business wins because your IT stack is a plumbing job, not a beauty contest. If your cloud, security, networking, and data center tools run through one vendor, ripping that out is painful. ePlus serves that pain across a $2.0B revenue base with 2,200 employees, which gives you scale, customer reach, and enough trust to sell into governments and healthcare.
How they make money
$2.0B
annual revenue · revenue declined -2.9% last year
total revenue
$2.0B
2.9%
The products that matter
resells core infrastructure
Product segment
latest quarter revenue hit $615M
management said demand in networking, cloud, security, and collaboration products drove much of the $615M quarter. This is the volume engine.
top-line driver
maintenance and cloud support
Managed services
supported a $0.96 EPS quarter
the company called out ongoing growth in enhanced maintenance support and cloud services in the same quarter that delivered $0.96 in EPS. This is the steadier piece of the model.
recurring support
implementation and project work
Professional services
-8% in the latest update
this group declined 8% because some retail and consumer projects were delayed. Same company. Same quarter. That is your reminder that services work can slip even when product demand is strong.
execution risk
Key numbers
5.0%
projected EPS growth
Past earnings grew 15.5%; the projection is 5.0%. That is the whole debate in one number.
15.0x
trailing p/e
P/E → plain English: price divided by profit → so what: you are not paying a crazy price, but you are also not buying a premium business.
10.0%
operating margin
Operating margin → plain English: profit left after running the business → so what: ePlus is efficient enough, not cushioned enough.
11.0%
return on capital
Return on capital → plain English: profit earned on money put into the business → so what: 11.0% is respectable, not elite.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- net profit margin 6.2% — keeps 6 cents of every dollar in revenue
- return on equity 11% — $0.11 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in PLUS 3 years ago → it's now worth $15,390.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
PLUS delivered $1.45 in EPS, beating the $0.90 estimate by 61.1% on a strong holiday-quarter sales print.
Quarterly sales were $615M, up 20% vs. prior year and about $85M above the base estimate in the primary coverage. Excluding the financing business sale, revenue growth was 25%, while professional services fell 8%.
$615M
revenue
$1.45
eps
25.2%
gross margin
61.1% EPS surprise
That 61.1% beat matters because it shows the business can still produce sharp upside surprises even while long-term growth estimates are being cut to 5.0%.
-
eplus posted strong results for the fiscal 2025 third quarter (ended december 31st).
-
sales of $615 million were nearly $85 million above our estimate and increased 20% compared to the previous-year tally.
-
excluding the sale of the company’s domestic financing business last june, the top line surged 25%.the advance was largely driven by the product segment, which benefited from robust demand for networking, cloud, security, and collaboration products. the managed services division also reported good results, thanks to ongoing growth in enhanced maintenance support and cloud services.
-
gains at these groups were partially offset by an 8% decline in revenues at the professional services group, which was hurt by project delays from certain retail and consumer customers.
-
december-period share earnings of $1.45 were well above both our estimate and the prior-year tally.the advance was supported by the higher sales, a favorable product mix, and an increase in vendor incentives.
source: company earnings report, 2026
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What could go wrong
the #1 risk is margin normalization after a vendor-incentive-boosted quarter.
med
vendor incentive fade
management said higher vendor incentives helped the earnings beat. That is useful when it shows up. It is less comforting when you need it to keep showing up.
with only a 5.9% net margin on $1.9B of revenue, even modest gross-margin pressure can hit EPS fast.
med
project delays in services
professional services revenue fell 8% in the latest update because retail and consumer customers pushed projects out.
if delays spread beyond one customer set, the part of the model that looks steadier can stop acting that way.
med
one-business concentration
there is no unrelated second engine here. all of the company’s $1.9B revenue base sits inside enterprise tech demand, product mix, and vendor relationships.
when IT budgets tighten, you feel it across the whole story, not one segment.
med
growth deceleration risk
49.3% growth is a gift and a burden. The next comp gets harder, and a stock with a recent growth burst can still rerate lower if that pace cools sharply.
the valuation looks cheap at 15.0x only if the business keeps proving the recent step-up was more than a hot streak.
all $1.9B of revenue sits in a business that kept 5.9% as net profit last year. That means small execution misses can hit earnings harder than sales.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings release
you want to see whether revenue stays closer to the recent 20–25% quarterly cadence or starts drifting away from that strong print.
metric
net margin on a bigger revenue base
5.9% on $1.9B is decent. If revenue climbs toward the $3B estimate, margin discipline matters more than the headline growth rate.
trend
product strength versus services softness
the product segment carried the recent quarter while professional services fell 8%. You want that gap narrowing, not widening.
risk
vendor incentives
management explicitly cited higher vendor incentives as part of the EPS strength. If that becomes the recurring explanation, quality of earnings gets weaker.
Analyst rankings
short-term outlook
average
momentum score 3. In human-speak, analysts are not seeing a dramatic short-term edge here.
risk profile
average
stability score 3 — middle-of-the-road risk. Not especially safe. Not a chaos stock either.
chart momentum
top 20%
technical score 2 — price action has been better than most stocks, even if the fundamental story is still being debated.
earnings predictability
85 / 100
high predictability means the business usually reports numbers close to expectations. That matters more when the margin profile is only 5.9%.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 102 buyers vs. 88 sellers in 4q2025. total institutional holdings: 26.4M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$41
$99
$78
current price
$70
target midpoint · 10% from current · 3-5yr high: $155 (+100% · 20% ann'l return)
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