Key Highlights
- ScanSource delivered Q4 adjusted earnings per share of $1.46, surpassing analyst expectations of $1.14 by $0.32
- Quarterly revenue reached $953.1 million, significantly exceeding the $821.95 million forecast and marking a 17% annual increase
- The technology distributor unveiled plans to acquire MicroAge in a $220.5 million all-cash transaction
- SCSC shares soared approximately 19% during Thursday’s premarket session
- Management projects fiscal 2027 net sales expansion of 6% to 10%, not factoring in the MicroAge transaction
Shares of ScanSource (SCSC) skyrocketed nearly 19% in Thursday’s premarket hours following the technology distributor’s impressive fourth-quarter performance and the revelation of a $220.5 million purchase of IT solutions provider MicroAge.
The company’s adjusted earnings per share reached $1.46 for the period, handily beating Wall Street’s consensus estimate of $1.14 by thirty-two cents. Top-line results totaled $953.1 million, substantially surpassing the projected $821.95 million and representing a 17% jump from the prior year’s $812.9 million.
Hardware demand served as the primary growth engine. The company’s Specialty Technology Solutions division generated net sales of $927.2 million, reflecting a 17.6% year-over-year expansion fueled by widespread demand across North American markets.
Meanwhile, the Intelisys and Advisory segment saw net sales increase 7.2% annually to $25.9 million, primarily attributable to stronger Resourcive performance.
Gross profit advanced 14% to $119.8 million, although the gross profit margin experienced a modest compression to 12.6% from the previous year’s 12.9%.
Operating income expanded 19% to reach $31.7 million. According to GAAP metrics, fourth-quarter net income improved to $25.6 million, or $1.24 per diluted share, compared to $20.1 million, or $0.88 per diluted share, in the comparable period last year.
Strategic MicroAge Acquisition
ScanSource revealed its agreement to purchase MicroAge for $220.5 million in cash. Chief Executive Officer Mike Baur stated the transaction “will accelerate growth, expand margins, and adds new services capabilities.”
The MicroAge acquisition is anticipated to finalize during the quarter concluding September 30, 2026, subject to customary regulatory approvals.
Complete Fiscal Year Performance
For the entirety of fiscal year 2026, ScanSource recorded net sales of $3.23 billion, representing a 6.1% year-over-year gain. Annual gross profit climbed 7% to $437.4 million, while gross profit margin strengthened to 13.6% versus 13.4% previously.
Annual operating income increased to $98.6 million from $85.2 million. On a GAAP basis, fiscal 2026 net income totaled $78.9 million, or $3.64 per diluted share, up from $71.5 million, or $3.00 per diluted share, in fiscal 2025.
Full-year adjusted EBITDA advanced 4.8% to reach $151.5 million.
The company concluded fiscal year 2026 with cash holdings of $88.4 million and total debt of $101.4 million. ScanSource produced $123.1 million in operating cash flow and $113.8 million in free cash flow throughout the fiscal year.
During the period, management executed share buybacks totaling $97.9 million.
For the upcoming fiscal 2027, ScanSource provided guidance calling for net sales growth between 6% and 10% alongside adjusted EBITDA ranging from $158 million to $165 million, excluding any potential impact from the planned MicroAge acquisition.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
