ScanSource Reports 30% Revenue Growth in Q1 2027 Amid Margin Compression and MicroAge Acquisition
ScanSource (SCSC) reported strong top-line growth for the first quarter of fiscal year 2027, with net sales rising 30.1% year-over-year to $962.3 million. This surge was primarily driven by robust hardware demand in North America and the recent acquisition of MicroAge, which significantly boosted Intelisys & Solution Services revenue by nearly 86%. Despite the revenue growth, profitability faced headwinds. Non-GAAP diluted EPS fell to $0.86 from $1.06 in the prior year, as gross margins compressed to 12.2% due to a higher mix of large, lower-margin hardware deals. Additionally, the company faced increased bad debt expenses stemming from credit issues with Brazilian telecommunications firm Oi SA. Looking ahead, ScanSource has raised its full-year fiscal 2027 net sales guidance to between $3.8 billion and $4.0 billion to account for MicroAge's contributions. The company also increased its adjusted EBITDA guidance to a range of $175 million to $185 million.
Tickers: $SCSC
Topics: acquisition cash flow eps net sales revenue growth