ScanSource (SCSC) Shares Soar 19% Following Stellar Q4 Results and Strategic MicroAge Buy

Key Highlights

• The company delivered Q4 adjusted earnings per share of $1.46, surpassing analyst projections of $1.14 by $0.32
• Quarterly revenue reached $953.1 million, significantly exceeding expectations of $821.95 million and marking a 17% year-over-year increase
• ScanSource unveiled plans to purchase MicroAge in an all-cash transaction valued at $220.5 million
• Shares of SCSC climbed approximately 19% during Thursday’s premarket session
• Management projects fiscal 2027 net sales expansion of 6% to 10%, not accounting for the MicroAge transaction

Shares of ScanSource (SCSC) rocketed approximately 19% higher in Thursday’s premarket session following the technology distribution company’s impressive fourth-quarter earnings performance and its announcement of a $220.5 million deal to acquire IT solutions integrator MicroAge.

ScanSource, Inc., SCSC

The company reported adjusted earnings of $1.46 per share for the period, handily surpassing the Street consensus of $1.14 by $0.32. Quarterly sales totaled $953.1 million, substantially beating analyst forecasts of $821.95 million while representing a 17% jump from the $812.9 million recorded in the comparable quarter of the previous year.

Strong hardware demand fueled the quarterly performance. Within the Specialty Technology Solutions division, net sales reached $927.2 million, marking a 17.6% year-over-year gain driven by widespread expansion across North American markets.

The Intelisys and Advisory segment generated net sales of $25.9 million, representing a 7.2% year-over-year uptick, primarily attributed to increased Resourcive revenue.

Gross profit expanded 14% to $119.8 million, although the gross profit margin experienced a modest decline to 12.6% from 12.9% in the year-ago period.

Operating income advanced 19% to $31.7 million. On a GAAP basis, fourth-quarter net income improved to $25.6 million, or $1.24 per diluted share, compared with $20.1 million, or $0.88 per diluted share, in the prior year.

Strategic MicroAge Acquisition

The company revealed its agreement to acquire MicroAge for $220.5 million in cash. According to CEO Mike Baur, the transaction “will accelerate growth, expand margins, and adds new services capabilities.”

The transaction is anticipated to finalize during the quarter concluding September 30, 2026, subject to regulatory clearance.

Fiscal Year Performance

For the complete fiscal year 2026, ScanSource generated net sales of $3.23 billion, representing a 6.1% year-over-year gain. Annual gross profit climbed 7% to $437.4 million, while gross profit margin improved to 13.6% from 13.4%.

Annual operating income increased to $98.6 million from $85.2 million. On a GAAP basis, fiscal 2026 net income totaled $78.9 million, or $3.64 per diluted share, versus $71.5 million, or $3.00 per diluted share, in fiscal 2025.

Adjusted EBITDA for the full year advanced 4.8% to $151.5 million.

The company concluded fiscal 2026 holding $88.4 million in cash against $101.4 million in total debt. ScanSource produced $123.1 million in operating cash flow and $113.8 million in free cash flow throughout fiscal 2026.

During the year, the company executed share buybacks totaling $97.9 million.

For fiscal 2027, management issued guidance calling for net sales growth between 6% and 10% alongside adjusted EBITDA ranging from $158 million to $165 million, excluding any impact from the MicroAge acquisition.