AI Demand Fuels ePlus Sales, Profits; Guidance Up and Dividend Declared

Herndon IT integrator posts AI-driven surge in demand

AI demand fuels ePlus’ infrastructure and services lift

Herndon, Virginia-based IT solutions provider ePlus is seeing rapid growth driven by enterprise and mid‑market demand for AI‑related infrastructure and modernization projects. The company is capitalizing on increased spending across cloud, compute, storage and networking as customers pursue AI deployments and digital transformation, a trend CEO Mark Marron attributes to the firm’s recent momentum and improving operating leverage.

That demand is reshaping ePlus’ project mix and margin profile as the company sells more integrated, higher‑value solutions rather than standalone products. ePlus is leveraging partnerships and systems integration capabilities to bundle hardware, software and managed services across the technology stack, which supports larger, multi‑quarter engagements and steadier gross margins. Management says this mix shift underpins stronger profitability even as pure services revenues show a modest decline in the quarter.

Looking ahead, ePlus concentrates on scaling these AI‑oriented offerings and the professional services that accompany them, aiming to translate customer modernization budgets into repeatable solution packages. The company is also emphasizing execution on multi‑vendor infrastructure deals and lifecycle services to sustain operating leverage as deployments move from proof‑of‑concept to production.

Financial snapshot: quarterly and nine‑month results

For the third fiscal quarter ended Dec. 31, 2025, ePlus reports consolidated net sales rising 24.6% to $614.8 million and gross billings increasing 15.6% to $982.1 million. Consolidated gross profit grows 26.8% to $158.7 million and gross margin expands to 25.8%. Net earnings from continuing operations more than double to $33.4 million and adjusted EBITDA rises to $53.4 million. For the first nine months, net sales increase 22.2% to $1.8609 billion, gross profit is $469.0 million, net earnings climb to $98.7 million and adjusted EBITDA reaches $158.8 million.

Corporate moves and shareholder actions

ePlus is streamlining its business after completing the sale of its domestic financing unit on June 30, 2025, a move management says sharpens focus on core IT solutions. The company raises its fiscal 2026 guidance and announces a quarterly common stock dividend of $0.25 per share as it balances reinvestment in solution capabilities with returning capital to shareholders.