| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 84 | 15.9x | 17.8x | Top tier | |
Growth | 28 | 6.1% | 7.1% | Bottom tier | |
Quality | 49 | 7.1% | 4.5% | Around median | |
Safety | 79 | — | 2.6x | Top tier | |
Capital Return | 87 | — | 2.12% | Top tier | |
Momentum | 91 | 23.1% | 2.9% | Top tier | |
Sentiment | 33 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ScanSource operates as a specialized technology distributor and services provider through partner channels, benefiting from longstanding relationships with solution providers, advisors, and end customers. Its business drivers include physical security, mobility, networking, customer experience, cloud computing, and connectivity, while the Intelisys and advisory segment adds recurring revenue and channel-related services; in fiscal 2026, Specialty Technology Solutions generated approximately $3.12 billion in revenue, compared with $101 million for the Intelisys and advisory segment.
In fiscal Q4 2026, sales rose 17% year over year to $953.1 million, gross profit reached $119.8 million with a gross margin of approximately 12.6%, and net income totaled $25.6 million. Adjusted earnings per share reached a company record of $1.46, up 43%, exceeding the analyst estimate of $1.11; gross profit for Specialty Technology Solutions also increased 16% to $94 million, while the segment’s adjusted earnings before interest, taxes, depreciation, and amortization reached $36.7 million with a margin of 3.96%.
ScanSource ended fiscal 2026 with revenue of $3.2 billion, gross profit of $437.4 million, net income of $78.9 million, and earnings per share of $3.64. Product sales increased 5.9% and recurring revenue grew 10.6%, with recurring revenue contributing 34% of consolidated gross profit, while the company generated free cash flow of $114 million, equivalent to 124% of adjusted net income.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on SCSC is Neutral, with a unified target of $43 and no variation between the highest and lowest estimates, so the target range does not provide broad independent confirmation of a bullish thesis. The $43 target is approximately 36% below the 52-week range high of $66.78 and is in the lower portion of the full $33.76–$66.78 range, reflecting caution despite improved results and organic guidance. The data did not include a usable price-to-earnings ratio, so the risk assessment here is based on the Neutral consensus, the 52-week range, and the size of the MicroAge transaction relative to the market capitalization.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Sales rose 17% year over year to $953.1 million, driven by broad-based demand and the return of large deals. Gross profit reached $119.8 million and net income totaled $25.6 million, while adjusted earnings per share climbed 43% to a record $1.46. Management identified physical security, mobility, networking, customer experience, cloud computing, and connectivity as areas of improvement during the second half of fiscal 2026.
On August 20, 2026, ScanSource signed a definitive agreement for the planned acquisition of MicroAge for $220.5 million, and it was expected to close by the end of fiscal Q1 2027. The transaction is intended to add capabilities in cloud migration and management, cybersecurity services, artificial intelligence data center implementation, and artificial intelligence solution development. Management did not disclose MicroAge’s revenue mix or expected earnings during the call and said it would update fiscal 2027 guidance after closing.
The company expects organic revenue growth of between 6% and 10%, with this range excluding any benefit from the planned acquisition of MicroAge. It also expects adjusted earnings before interest, taxes, depreciation, and amortization of between $158 million and $165 million, with a margin ranging from 4.6% to 4.65%. Free cash flow guidance is at least $85 million, compared with $114 million achieved in fiscal 2026, with an expected effective tax rate of between 27.5% and 28.5%.
In fiscal 2026, product sales increased 5.9%, while recurring revenue grew at a faster rate of 10.6%. Recurring revenue contributed 34% of consolidated gross profit and approximately 15% of the annual gross profit of Specialty Technology Solutions. The Intelisys and advisory segment generated annual revenue of $101 million and net billings of approximately $2.88 billion in fiscal 2026.
ScanSource ended fiscal Q4 2026 with $88 million in cash and a net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ratio of approximately zero. During fiscal 2026, it generated free cash flow of $114 million, equivalent to 124% of adjusted net income. It also repurchased $98 million of shares during the year, with approximately $121 million remaining under the repurchase authorization as of June 30, 2026.
The company faces the challenge of integrating MicroAge and managing potential sales-channel conflict with its partners, although management assesses the risk as low. Juniper supply constraints are also delaying the fulfillment of partner opportunities, and management said on August 20, 2026 that the business would not reach its expected full run rate before the second half of fiscal 2027. In addition, growth comparisons will be more difficult in the second half following the strength of fiscal Q4 2026, while weak revenue in Brazil required structural headcount changes to preserve profitability.
