The IT solutions provider reported fiscal Q1 net sales of $637.3 million, up 19% from last year and easily above consensus estimates. Adjusted earnings per share rose nearly 25% to $1.26, and adjusted EBITDA landed at $46.7 million, both beating analyst expectations. ePlus is shifting more focus toward rewarding shareholders, launching both a quarterly dividend and a buyback as profits and cash flow climb. Its services division led the charge with nearly 49% revenue growth, boosted by the Bailiwick acquisition, while product sales climbed nearly 14% thanks to strong demand for cloud and security solutions. The company also completed the sale of its US financing business to shore up its balance sheet. Looking ahead, ePlus projects net sales and gross profit to grow in the upper single digits for fiscal 2026, with adjusted EBITDA expected to rise in the mid-teens.

With ePlus turning on dividends and buybacks for the first time, the firm's signaling confidence in its outlook and balance sheet strength. Analysts have a bullish stance, with a 12-month price target around 31% above where shares trade today. Shares are also trading at a modest 13 times forward earnings, down from 14 a few months ago, looking reasonable against IT services peers and drawing the eye of value-focused investors.

The bigger picture: Cloud momentum is rewriting the tech playbook.

With cloud and cybersecurity demand spreading across industries, ePlus is racking up gains where many IT consultancies are looking for growth. Strategic moves like the Bailiwick acquisition have boosted recurring revenue, while shedding the US financing arm has tightened the firm's tech focus and balance sheet. As more companies shift toward digital solutions, ePlus is positioning itself to catch the next wave of tech transformation.