Olympus Reports Q1 Earnings and Revenue Down 12.1% Y/Y, Forecasts FY26 Revenue of ¥998B

Olympus reported Q1 diluted earnings per share of ¥7.96 and a 12.1% YoY decline in revenue to ¥206.5bn. The company forecasts FY26 revenue of ¥998bn.

ePlus Inc. (NASDAQ:PLUS), a technology solutions provider, delivered robust financial performance in the first quarter of fiscal year 2026 (Q1 FY26), setting new quarterly records for both GAAP revenue and non-GAAP earnings per share (EPS). The company reported GAAP revenue of $637.3 million, surpassing analyst estimates by 21.6% and marking a 19.0% year-over-year (YoY) increase [1]. Non-GAAP EPS reached $1.26, exceeding expectations by $0.20 and growing 24.8% YoY.

The quarter was characterized by broad-based revenue expansion, driven primarily by services, which accounted for 48.8% YoY growth. Professional services nearly doubled, increasing by 92.4%, while managed services grew by 9.0%. The product business also contributed, with cloud-related net sales (GAAP) surging 50.8% to $206.996 million and security product sales advancing 27.3% (GAAP). However, networking and collaboration products declined by 7.0% and 43.7%, respectively [1].

ePlus also initiated its first-ever quarterly dividend of $0.25 per share and authorized a new 1.5 million share buyback program. These moves reflect the company's commitment to shareholder returns and its enhanced capital return profile. The quarter saw a 17.4% increase in operating expenses, primarily due to a 275-person headcount expansion in customer-facing roles [1].

The company's exit from its US financing business and the acquisition of Bailiwick Services contributed to the strong performance. Customer vertical performance was mixed, with significant growth in the Telecom, Media, and Entertainment sector and the "All Other" category, offset by declines in technology, healthcare, and financial services. Overall, ePlus's pivot to pure-play technology and strategic focus on cloud, AI, and security position it well to benefit from secular trends in these areas [1].

For fiscal 2026, ePlus raised its financial outlook, expecting net sales and gross profit to grow in the upper single-digit percentage range, while adjusted EBITDA is projected to rise in the mid-teens. The company's cash position strengthened, with cash and equivalents totaling $480.2 million, up from $389.4 million as of Q4 FY2025 [1].

References:
[1] https://www.nasdaq.com/articles/eplus-plus-q1-revenue-jumps-19