ScanSource Q3 sales and EPS beat estimates, raises free cash flow outlook

ScanSource

07/05/2026 13:38

Overview

U.S. technology distributor's fiscal Q3 net sales rose 8.8%, beating analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations

Company raised full-year free cash flow outlook, reaffirmed net sales and adjusted EBITDA guidance

Outlook

ScanSource sees FY26 net sales of $3.0 bln to $3.1 bln

Company expects FY26 adjusted EBITDA of $140 mln to $150 mln

ScanSource raises FY26 free cash flow outlook to at least $90 mln from at least $80 mln

Result Drivers

SPECIALTY TECHNOLOGY SOLUTIONS - Growth across most technologies in North America drove higher segment sales

PRODUCTS AND SERVICES - Net sales for products and services rose 9.1% year-over-year

RECURRING REVENUE - Recurring revenue increased 3.6% year-over-year, including acquisitions

Company press release: ID:nBw8YxB6Ra

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$766.79 mln
$722.91 mln (3 Analysts)
Q3 Adjusted EPS
Beat
$0.94
$0.92 (4 Analysts)
Q3 Adjusted Net Income
$20.37 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

Wall Street's median 12-month price target for Scansource Inc is $50.00, about 22.2% above its May 6 closing price of $40.93

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)