ePlus, Inc. (PLUS)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$92.10+1.35%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
Intact: The reason to own it still holds.
ePlus grows revenue over 20% yearly, reaching $2.44 billion in fiscal 2026. Profit margins remain strong with gross margin guidance raised to 19-21%. The company raised its quarterly dividend by 8% to $0.27, showing commitment to shareholder returns. Partnerships in AI with Nvidia and Cisco support future growth.
Growth could slow below mid-single digits as AI consulting progress is mixed. Cash flow remains fragile with some quarters of negative cash from operations. The stock trades cheap for a reason, reflecting risks in sustaining growth and profitability.
The price is about 29% below our fair value near $121. Analysts expect about 6% revenue growth, which is below the company’s recent 20% growth. Our view is more optimistic on growth and margin expansion.
Breaks if: AI consulting growth stalls or declines over next year
Breaks if: cash falls below $389M or dividend cut below $0.27
Breaks if: gross margin falls below 19% next quarter
Breaks if: revenue falls below $2.0 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a growth opportunity with some risks. The company aims for double-digit revenue and profit growth, but recent performance has been mixed, leading to a medium level of confidence in the thesis.
The market currently prices PLUS as cheap compared to its peers, with a slight expectations gap. This suggests that some fragility in execution is already considered, but not the full extent of potential challenges.
Management has reiterated its commitment to growth, with recent financial performance showing strong results. However, the risk label has recently shifted to elevated, indicating that while the company is performing well, there are concerns about future earnings surprises.
The future performance of PLUS will depend on several factors. Key triggers include guidance updates from management, actions by the Federal Reserve regarding interest rates, and performance from leading companies in the tech sector.
The multi-year view on PLUS remains intact, but investors should be aware of the elevated risks and market expectations. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the positive outlook. Additionally, the expansion in Microsoft's footprint reinforces revenue growth objectives. There are no new threats impacting the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.