ScanSource (SCSC) Q4 FY2026 Earnings Call: Record EPS, FY2027 Growth Outlook
Source Tradingkey
Key Takeaways
- ScanSource reported fiscal Q4 2026 net sales growth of 17% year over year, while non-GAAP EPS rose 43% to a company record of $1.46.
- Full-year sales increased 6%. Product revenue grew 5.9%, recurring revenue increased 10.6%, and consolidated gross profit rose 7%.
- Fiscal 2026 free cash flow reached $114 million, representing 124% conversion of non-GAAP net income. The company ended the year with $88 million in cash and net debt leverage of approximately zero.
- Management expects organic fiscal 2027 revenue growth of 6% to 10%, adjusted EBITDA of $158 million to $165 million, and at least $85 million in free cash flow. The outlook excludes the planned MicroAge acquisition.
- ScanSource expects to close the MicroAge acquisition by the end of fiscal Q1 2027. Management said the transaction will expand its addressable market in cloud, cybersecurity, data center and AI technologies.
- Demand strengthened broadly in the second half across physical security, mobility, networking, customer experience, cloud compute and connectivity, supported by the return of large deals.
Key Financial Data
| Metric | Q4 FY2026 | Full-Year FY2026 | Commentary |
|---|---|---|---|
| Net sales growth | 17% YoY | 6% YoY | Q4 growth reflected broad-based demand and large deals |
| Non-GAAP EPS | $1.46, up 43% YoY | — | Company record |
| Product revenue growth | — | 5.9% YoY | Part of the company’s three-year growth framework |
| Recurring revenue growth | — | 10.6% YoY | Contributed 34% of consolidated gross profit |
| Consolidated gross profit growth | Mid-teens YoY | 7% YoY | Full-year result was at the high end of the company’s range |
| Free cash flow | — | $114 million | 124% conversion of non-GAAP net income |
| Cash | $88 million | $88 million | Balance at June 30, 2026 |
| Share repurchases | $27 million | $98 million | $121 million remained under the authorization |
| Adjusted ROIC | 18.2% | 14.7% | Management cited working-capital and capital-allocation discipline |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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