Aug 20, 2026 earnings call — MicroAge acquisition and strong Q4 growth
Signed agreement to acquire MicroAge; Q4 non-GAAP EPS was a record $1.46 per share.
Revenue $1.0B (est $0.8B) · EPS $1.46 (est $1.14)
Key quotes
"We are excited about today's announcement that we signed a definitive agreement to acquire MicroAge."
"Sales were up 17% year over year in the fourth quarter and 6% for the full year."
"On an organic basis, we expect revenues to increase between 6% to 10%, believing we will see continued strong demand across our technologies and with normal lead times."
Analyst Q&A 4
Why results beat guide; supply risk
Q (Greg Burns · Sidoti): He asked what came in stronger than expected that drove outperformance, whether macro or memory supply risks affected the business, and which product areas were strongest.
A: Management said the full-year outcome matched what they expected: a stronger second half with very strong demand and the return of large deals. They remain cautious on macro factors but are not expecting supply disruptions. On product segments, strength was broad based and physical security performed well.
"So I would say what we saw this year when we think about the full year was really what we thought was going to happen coming into the year." — Stephen T. Jones (CFO)
First-half growth; Juniper timing; Intelisys; Brazil
Q (Keith Housum · Northcoast): He asked whether first-half percentage growth would be stronger than the second half, how the Juniper line-card addition will benefit results and timing, whether there were new customer wins, progress at Intelisys and bookings, and why Brazil was weak.
A: They said first-half year-over-year percentage growth should be stronger because first-half comps are easier, and that is built into the 6% to 10% guidance. On Juniper, they expect supply constraints now will slow fulfillment, so benefits will develop slowly through the first half and be in full swing in the second half. They noted a shift toward a winning sales mindset helped results, Intelisys is being refocused with investments showing in SG&A and stronger results in cloud, connectivity and CX, bookings are not disclosed, and Brazil stayed profitable though top-line was disappointing so they made headcount changes.
"I would say right now, 1 of the challenges that we have already faced is Juniper has some supply chain constraints." — Michael L. Baur (CEO·CHAIR)
Guidance drivers and price vs. volume
Q (Guy Hardwick · Barclays): He asked how much of the 6%–10% organic guidance depends on large deals or the sales reenergizing, and how much of Q4 revenue was driven by price versus volume, especially in specialty technologies.
A: They said the 6% to 10% is organic and excludes acquisition benefits; large deals are expected to continue rolling out and the business should operate more normally in FY 2027. On price versus volume, they acknowledged broad-based year-over-year price increases helped, but most sales are under special pricing agreements so isolating price impact is difficult, and the majority of the result was demand driven.
"We definitely benefited year over year from broad based price increases." — Stephen T. Jones (CFO)
Why buy MicroAge instead of buybacks
Q (Adam Tindle · Raymond James): He asked why they chose the MicroAge acquisition over share repurchases, for a ballpark EBITDA contribution, and how vendors and customers will react.
A: They said this acquisition was part of a long-term plan to add services capabilities partners need, and MicroAge is a profitable growth company in those service adjacencies. They will not project EBITDA before close and will give details at Q1, and they said partners were enthusiastic and vendors were pleased because ScanSource can scale MicroAge more than it could alone.
"So if the core business that they are in is going to grow and give strong returns, why would we not want to invest in that with our balance sheet?" — Michael L. Baur (CEO·CHAIR)