ScanSource reported fourth-quarter results that exceeded analyst expectations, sending shares up 17% in premarket trading to $60.18. Adjusted earnings per share rose 43% year-over-year to $1.46, surpassing the $1.14 consensus estimate by 28.1%. Revenue grew 17% to $953.1 million, beating the $822.0 million forecast by $131.2 million.
For the full fiscal year 2026, net sales increased 6% to $3.12 billion, with product sales up 5.9% and recurring revenues climbing 10.6%. Gross profit from recurring revenues accounted for 34% of consolidated results, while consolidated gross profit rose 7% year-over-year. The company’s Specialty Technology Solutions segment reported an 18% increase in quarterly net sales and a 16% rise in gross profit to $94 million. Adjusted EBITDA for the segment grew 28% to $36.7 million, with a margin of 3.96%.
The Intelisys & Advisory segment posted a 7% increase in net sales and an 8% rise in gross profits for the quarter. Adjusted EBITDA reached $9.4 million, with a margin of 36.4%. Full-year segment revenues grew 3.1% to $101 million, while net billings totaled approximately $2.88 billion.
ScanSource’s cash position stood at $88 million at quarter-end, with free cash flow for the year reaching $114 million. The company maintained a net debt leverage ratio near zero and a current ratio of 1.86. Return on invested capital was 18.2% for the quarter and 14.7% for the full year. Share repurchases totaled $27 million in the quarter and $98 million for the year, leaving $121 million authorized for future buybacks.
Management guided fiscal 2027 organic revenue growth between 6% and 10%, excluding the pending MicroAge acquisition. Adjusted EBITDA is projected at $158 million to $165 million, with a margin of 4.6% to 4.65%. Free cash flow is expected to be at least $85 million, while the effective income tax rate is forecasted between 27.5% and 28.5%. The MicroAge deal is anticipated to close by the end of the first quarter of fiscal 2027.
CEO Mike Baur stated that the company has returned to growth and is positioned for a stronger trajectory, adding that ScanSource is prioritizing investment in core businesses with strong returns. CFO Steve Jones highlighted the record non-GAAP EPS of $1.46, up 43% year-over-year.
