EPlus Sees FY26 Sales Boom As AI Is ‘Becoming Embedded’

Why It Matters

The results underscore how AI‑centric spending is accelerating revenue for solution providers, while market volatility can still suppress equity valuations.

Key Takeaways

• FY26 gross billings hit $3.8 bn, +17% YoY
• Net sales rose 22% to $2.4 bn
• Adjusted EBITDA surged 49.5% to $204.8 m
• AI integration fuels growth across infrastructure, security, cloud
• Cisco accounts for 29% of sales; Verizon 24% of revenue

Pulse Analysis

AI has moved from a strategic buzzword to a core operating requirement for midsize and large enterprises, and ePlus is positioned at the intersection of that shift. Customers are no longer asking merely for compute power; they need end‑to‑end environments that blend data‑center hardware, secure networking, and cloud orchestration. By leveraging its relationships with vendors such as Cisco, NetApp and HPE, ePlus can bundle these components into AI‑ready solutions, turning a single storage request into a broader digital‑transformation engagement.

Financially, ePlus delivered a standout FY26, posting $3.8 billion in gross billings and $2.4 billion in net sales—both double‑digit gains that outpaced many peers. The 49.5% jump in adjusted EBITDA highlights disciplined cost management and the scalability of its services platform. Yet the market reaction was muted, with shares sliding nearly 10% after the release, suggesting investors remain cautious about macro‑headwinds, including chip shortages and geopolitical uncertainty, despite the company’s strong top‑line momentum.

Looking ahead, ePlus’s growth trajectory hinges on deepening AI‑related engagements while diversifying its vendor mix. Although Cisco still represents 29% of revenue, the company is expanding partnerships with other hardware and software providers to mitigate concentration risk. The firm also faces external challenges—persistent memory‑chip constraints and global supply‑chain volatility could pressure margins. Nonetheless, management’s confidence in a long runway for AI adoption, combined with internal AI‑driven efficiencies, positions ePlus to capture a larger share of the enterprise modernization market.