ScanSource (NASDAQ:SCSC) Issues Quarterly Earnings Results

ScanSource (NASDAQ:SCSC) announced its quarterly earnings data on Thursday. The industrial products company reported $0.94 EPS for the quarter, beating the consensus estimate of $0.91 by $0.03, FiscalAI reports. The business had revenue of $758.59 million during the quarter, compared to analyst estimates of $738.55 million. ScanSource had a return on equity of 9.35% and a net margin of 2.38%.The company’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.86 earnings per share.

Here are the key takeaways from ScanSource’s conference call:

• ScanSource delivered a strong Q3—adjusted EBITDA, EPS, free cash flow and ROIC all increased, with net sales up 9% driven by improved hardware demand (notably networking and security).
• Management launched a new Converged Communications business unit combining Specialty Communications and Intelisys CX to create a unified “One ScanSource” partner experience and dedicated sales resources to drive cross?sell of cloud recurring revenue and hardware.
• Intelisys & Advisory net sales declined 1% year?over?year and executives said new order growth is not accelerating as desired, prompting additional investments and a 6–18 month timeline to see improved results.
• Financial position is strong—$120M cash, net debt leverage roughly 0, $69M free cash flow in the quarter ($119M YTD), $33M of share repurchases this quarter, and raised FY2026 free cash flow guidance to at least $90M.
• Recurring revenue progress continues—approximately 15% of Specialty segment gross profit now comes from recurring offerings (helped by Advantix and DataXoom), supporting the company’s multi?year goal to grow recurring contributions.

ScanSource Stock Up 6.0%

Shares of NASDAQ:SCSC traded up $2.61 on Friday, hitting $45.90. 395,896 shares of the company traded hands, compared to its average volume of 219,611. ScanSource has a 52 week low of $33.76 and a 52 week high of $46.25. The company has a quick ratio of 1.22, a current ratio of 1.86 and a debt-to-equity ratio of 0.11. The stock has a 50 day simple moving average of $37.77 and a 200-day simple moving average of $39.47. The company has a market cap of $985.93 million, a PE ratio of 13.91, a PEG ratio of 0.73 and a beta of 1.28.

Analysts Set New Price Targets

Several brokerages have commented on SCSC. Zacks Research raised ScanSource from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 7th. Wall Street Zen lowered ScanSource from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $43.00.

Key ScanSource News

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: ScanSource beat quarterly expectations, reporting adjusted EPS of $0.94 versus $0.91 expected and revenue of $758.6 million versus $738.6 million estimated, a sign that demand is holding up better than anticipated. ScanSource Delivers Strong Third Quarter Results
• Positive Sentiment: Third-quarter net sales rose 8.8% year over year to $766.8 million, while gross profit increased 6.9%, suggesting improved operating momentum and supporting investor sentiment. ScanSource Delivers Strong Third Quarter Results
• Positive Sentiment: Management also updated fiscal 2026 guidance, with revenue outlook of $3.0 billion to $3.1 billion, indicating confidence in continued top-line growth even if the range is roughly in line with expectations. ScanSource Delivers Strong Third Quarter Results
• Neutral Sentiment: Investors are also digesting the earnings call transcript and related coverage, which may provide additional detail on margins, demand trends, and the outlook for the rest of the year. ScanSource SCSC Q3 2026 Earnings Call Transcript

Insider Buying and Selling at ScanSource

In related news, Director Charles Alexander Mathis purchased 6,000 shares of ScanSource stock in a transaction dated Wednesday, February 11th. The stock was purchased at an average cost of $35.20 per share, for a total transaction of $211,200.00. Following the completion of the acquisition, the director directly owned 24,793 shares of the company’s stock, valued at $872,713.60. The trade was a 31.93% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Michael L. Baur sold 21,173 shares of the firm’s stock in a transaction on Friday, March 13th. The shares were sold at an average price of $35.76, for a total value of $757,146.48. Following the transaction, the chief executive officer owned 161,339 shares of the company’s stock, valued at $5,769,482.64. The trade was a 11.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 3.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On ScanSource

Several institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. increased its holdings in shares of ScanSource by 56.5% during the fourth quarter. Invesco Ltd. now owns 439,442 shares of the industrial products company’s stock valued at $17,165,000 after acquiring an additional 158,722 shares in the last quarter. Summit Global Investments increased its holdings in ScanSource by 3.3% in the 4th quarter. Summit Global Investments now owns 14,177 shares of the industrial products company’s stock worth $554,000 after buying an additional 451 shares in the last quarter. State of Tennessee Department of Treasury increased its holdings in ScanSource by 83.0% in the 4th quarter. State of Tennessee Department of Treasury now owns 30,973 shares of the industrial products company’s stock worth $1,332,000 after buying an additional 14,049 shares in the last quarter. Empowered Funds LLC increased its holdings in ScanSource by 4.0% in the 4th quarter. Empowered Funds LLC now owns 116,706 shares of the industrial products company’s stock worth $4,559,000 after buying an additional 4,503 shares in the last quarter. Finally, XTX Topco Ltd bought a new stake in ScanSource in the 4th quarter worth about $383,000. 97.91% of the stock is currently owned by institutional investors.

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.