ScanSource posts record quarterly EPS as MicroAge deal targets AI and data center growth
A record non-GAAP EPS print of $1.46 in Q4 fiscal 2026 puts ScanSource, Inc. in focus. Management cited 17% year-over-year net sales growth and a broad recovery in physical security, mobility, and networking demand as the drivers. The next confirmable milestone is the MicroAge acquisition close, expected before the end of Q1 fiscal 2027, when the company has said it will issue a formal update to annual guidance.
Key takeaways
- ScanSource reported a record non-GAAP EPS of $1.46 in Q4 fiscal 2026, driven by 17% year-over-year net sales growth.
- Management attributed the outperformance to genuine demand recovery in physical security, mobility, and networking—not price inflation—as large pipeline deals closed.
- For fiscal 2027, ScanSource projects organic revenue growth of 6% to 10%, with higher growth expected in the first half due to easier prior-year comparisons.
- The pending MicroAge acquisition expands ScanSource's addressable market into AI, cybersecurity, and data center solutions, and is expected to close before the end of Q1 fiscal 2027.
- Juniper networking supply chain constraints are expected to limit fulfillment through the first two quarters of fiscal 2027, with backlog easing in the second half.
A record non-GAAP EPS print of $1.46 in Q4 fiscal 2026 puts ScanSource, Inc. in focus. Management cited 17% year-over-year net sales growth and a broad recovery in physical security, mobility, and networking demand as the drivers. The next confirmable milestone is the MicroAge acquisition close, expected before the end of Q1 fiscal 2027, when the company has said it will issue a formal update to annual guidance.
The Q4 print
The quarter's outperformance came from the return of large deals that had been sitting in the pipeline. Management attributed the result to genuine demand recovery rather than price inflation. Mid-teen growth in both net sales and gross profits, paired with disciplined working capital management, produced the record EPS figure. Management added that new leadership has shifted the company's orientation from defending market share to actively taking it in high-growth segments.
For fiscal 2027, ScanSource projects organic revenue growth of 6% to 10%, assuming continued strong demand and normalized lead times across technology categories. The first half is expected to carry higher year-over-year growth rates because comparisons against the prior year's first half are easier. Management said it is not currently seeing supply shortages in memory or other components that would pressure that guide.
What the MicroAge deal adds
The pending acquisition expands ScanSource's total addressable market into AI, cybersecurity, and data center solutions. The premise is that smaller channel partners typically cannot afford to build capabilities like security operations centers or network operations centers themselves, so ScanSource would provide those as a wholesale service layer. Cloud migration and AI solutions are also part of the MicroAge capability set management plans to co-sell through existing partners.
ScanSource's "converged communications" strategy frames this: connecting on-premise hardware to cloud recurring revenue so partners can capture the full technology stack. Management characterized the MicroAge deal as offering better long-term capital returns than share repurchases alone given its growth profile. The company's leverage target remains a net debt ratio of 1x to 2x adjusted EBITDA.
One front-half headwind: Juniper networking supply chain constraints are expected to limit fulfillment through the first two quarters of fiscal 2027. Management said the backlog should ease in the second half as supply clears. In Brazil, the company implemented headcount reductions to protect margins after top-line revenue there disappointed.
The MicroAge close before the end of Q1 fiscal 2027 and the guidance revision that follows it are the events to watch.
Related reading
Filed by the newsroom of MarketPR on August 21, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.