Overview

* ScanSource ( SCSC ) Q4 net sales rise 8.9%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q4 beats consensus, rising to $1.02, per LSEG data

* Adjusted EBITDA for Q4 increases 13%, surpassing estimates, per LSEG data

Outlook

* ScanSource ( SCSC ) sees FY26 net sales between $3.1 bln and $3.3 bln

* Company expects FY26 adjusted EBITDA of $150 mln to $160 mln

* ScanSource ( SCSC ) anticipates FY26 free cash flow of at least $80 mln

Result Drivers

* RECURRING REVENUE - Recurring revenue increased 30% year-over-year, driven by acquisitions

* NORTH AMERICA GROWTH - Specialty Technology Solutions sales rose 9.2%, fueled by broad-based growth in North America

* PRODUCT AND SERVICE SALES - Net sales for products and services grew 8.1% year-over-year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $812.89 $776.90

mln mln (3

Analysts

)

Q4 Beat $1.02 $0.92 (3

Adjusted Analysts

EPS )

Q4 Beat $23.32 $22.10

Adjusted mln mln (2

Net Analysts

Income )

Q4 Beat $38.64 $36.60

Adjusted mln mln (3

EBITDA Analysts

)

Q4 Gross $105.10

Profit mln

Q4 $26.79

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the computer hardware peer group is "buy"

* Wall Street's median 12-month price target for Scansource Inc ( SCSC ) is $54.00, about 21.2% above its August 20 closing price of $42.53

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)