ePlus (PLUS) Q1 Revenue Beats but Margin Pressure Sinks Shares

ePlus Inc. (NASDAQ: PLUS) reported revenue of $576.2 million for its fiscal first quarter ended March 31, 2026, up 15.7% year over year and above analyst estimates. Non‑GAAP earnings of $1 per share also beat consensus by $0.02. Yet shares fell 4.6% to $84.13 on May 29 as investors fixated on compressed margins. The IT solutions provider credited broad‑based demand for AI, cloud, data center, and security offerings. CEO Mark Marron said the divestiture of the financing business sharpened focus on these high‑growth areas. However, COO Darren Raiguel cautioned that larger enterprise deals came at more competitive margins, and delayed professional services projects dragged on profitability. Looking ahead, management highlighted rising open orders but warned that a memory chip shortage and geopolitical risks could disrupt supply chains and revenue timing. The company intends to expand AI and managed services while keeping a lid on costs, though it acknowledged growth may decelerate from a strong prior year.