ePlus delivered a quarter that surpassed Wall Street’s revenue and non-GAAP profit expectations, with broad-based organic growth across its customer base and a notable increase in gross billings. Management credited expanding demand for AI, cloud, and data center solutions, as well as increased customer investments in cybersecurity and IT modernization, for the company’s performance. CEO Mark Marron highlighted a "record quarter for gross billings" and noted that open orders were up nearly $750 million year-over-year, reflecting ongoing customer momentum. The positive market reaction suggests investors were encouraged by the company’s execution and demand trends.
Is now the time to buy PLUS? Find out in our full research report (it’s free for active Edge members).
ePlus (PLUS) Q3 CY2026 highlights:
- Revenue $667.9 million vs S&P analyst consensus of $636.1 million (9.7% year-on-year growth, 5% beat)
- Adjusted EPS $1.82 vs S&P analyst consensus of $1.47 (23.8% beat)
- Adjusted EBITDA $67.1 million vs analyst estimates of $56.85 million (10% margin, 18% beat)
- Operating margin 8.5%, in line with the same quarter last year
- Market capitalization $2.38 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from ePlus’s Q3 earnings call
- Greg Burns (Sidoti & Company) asked about supply constraints in high-end memory and networking. COO Darren Raiguel noted ongoing price increases in GPU and networking components but said broad market delays were limited, highlighting price rather than availability as the main challenge.
- Greg Burns (Sidoti & Company) inquired about the drivers behind the sharp increase in open orders. Raiguel explained that higher-end networking and data center projects, fueled by AI adoption, were key contributors, and CEO Mark Marron emphasized growing demand for IT modernization and cybersecurity.
- Maggie Nolan (William Blair) questioned how much of the open order backlog is expected to convert in the second half. Raiguel responded that significant activity is expected, with a portion pushing into the following year, but conversion rates are improving as inventory is shipped.
- Maggie Nolan (William Blair) asked about the impact of higher third-party costs in services. Raiguel and CFO Elaine Marion explained that these costs are generally passed through to customers and partly reflect the mix from acquisitions, especially Bailiwick.
- No further analyst questions were asked on the call.
Catalysts in upcoming quarters
Looking forward, the StockStory team will be watching (1) the pace at which ePlus can convert its large open order backlog into revenue, (2) the continued expansion of AI-driven and cloud infrastructure projects across key verticals, and (3) the integration and performance impact of the Daymark Solutions acquisition. We will also monitor margin developments as third-party costs and potential supply chain constraints remain areas of uncertainty.
ePlus currently trades at $92.09, up from $82.43 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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