ScanSource (NASDAQ:SCSC) Announces Quarterly Earnings Results

ScanSource (NASDAQ:SCSC) released its quarterly earnings results on Thursday. The industrial products company reported $0.80 earnings per share for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.20), FiscalAI reports. The firm had revenue of $766.51 million for the quarter, compared to analyst estimates of $782.46 million. ScanSource had a return on equity of 9.72% and a net margin of 2.48%.The company’s revenue was up 2.5% compared to the same quarter last year. During the same period last year, the company earned $0.85 EPS.

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

• Profitability was hit this quarter by unexpected period costs — primarily freight/mix increases and a customer-specific bad-debt reserve — which reduced gross profit and Adjusted EBITDA margins in the Specialty Technology Solutions segment.
• The company launched a new converged communications sales team that combines Specialty hardware and Intelisys cloud/CX capabilities to strengthen partner alignment and expand share-of-wallet.
• Intelisys new orders are growing faster than billings as management continues to invest ahead of revenue, and they expect many of those orders to convert into billings over roughly a one-year horizon.
• Management lowered FY2026 revenue guidance to $3.0–3.1 billion and Adjusted EBITDA to $140–150 million, attributing the change mainly to timing/slowdown of large deals, though they maintained an annual free cash flow target of at least $80 million.
• The company emphasizes a strong balance sheet and capital flexibility — ~ $83 million cash, net debt leverage ~0, $18 million of share repurchases this quarter and $179 million remaining under the buyback authorization — supporting buybacks and selective M&A.

ScanSource Stock Performance

Shares of SCSC opened at $36.36 on Friday. The company has a market cap of $797.74 million, a PE ratio of 11.33, a price-to-earnings-growth ratio of 0.72 and a beta of 1.28. The firm has a 50-day moving average of $40.95 and a 200-day moving average of $41.78. ScanSource has a one year low of $28.75 and a one year high of $46.25. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.16 and a quick ratio of 1.32.

Analysts Set New Price Targets

SCSC has been the subject of several recent research reports. Wall Street Zen cut shares of ScanSource from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Zacks Research cut shares of ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 21st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of ScanSource in a report on Monday, December 29th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $42.50.

Insider Activity

In other news, CFO Stephen Jones sold 5,020 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $42.30, for a total value of $212,346.00. Following the completion of the sale, the chief financial officer directly owned 83,326 shares of the company’s stock, valued at $3,524,689.80. This trade represents a 5.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Michael L. Baur sold 9,459 shares of ScanSource stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $41.42, for a total value of $391,791.78. Following the transaction, the chief executive officer owned 182,512 shares of the company’s stock, valued at $7,559,647.04. This represents a 4.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 25,020 shares of company stock valued at $1,035,669 over the last quarter. 3.18% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ScanSource

Several institutional investors and hedge funds have recently made changes to their positions in SCSC. Wasatch Advisors LP lifted its holdings in ScanSource by 34.9% during the 3rd quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company’s stock worth $50,130,000 after purchasing an additional 294,624 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its position in ScanSource by 65.6% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 389,915 shares of the industrial products company’s stock worth $17,152,000 after buying an additional 154,518 shares during the period. Bridgeway Capital Management LLC increased its position in ScanSource by 1.2% during the 3rd quarter. Bridgeway Capital Management LLC now owns 311,054 shares of the industrial products company’s stock worth $13,683,000 after buying an additional 3,821 shares during the period. Millennium Management LLC lifted its holdings in shares of ScanSource by 8.4% during the first quarter. Millennium Management LLC now owns 259,808 shares of the industrial products company’s stock worth $8,836,000 after buying an additional 20,086 shares in the last quarter. Finally, Qube Research & Technologies Ltd boosted its position in shares of ScanSource by 30.7% in the third quarter. Qube Research & Technologies Ltd now owns 235,370 shares of the industrial products company’s stock valued at $10,354,000 after acquiring an additional 55,262 shares during the period. Institutional investors and hedge funds own 97.91% of the company’s stock.

ScanSource News Summary

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Management launched a unified communications team to pursue a growing segment and diversify deal flow, a strategic move that could lift higher‑margin services over time. ScanSource updates FY26 revenue guidance to $3B–$3.1B amid slower large deal activity and launches unified communications team
• Positive Sentiment: Conference call/transcript emphasized steady underlying growth and execution on strategic initiatives (product/channel focus and go‑to‑market adjustments), which could support recovery if large‑deal cadence improves. ScanSource Inc (SCSC) Q2 2026 Earnings Call Highlights: Steady Growth Amid Strategic Initiatives
• Neutral Sentiment: The company noted modest year‑over‑year revenue growth (~2.5%) and announced a governance refresh — positive for oversight but unlikely to move near‑term results materially. ScanSource Posts Modest Q2 Growth and Governance Refresh
• Negative Sentiment: Q2 EPS of $0.80 missed consensus (~$1.00) and declined from $0.85 last year, signalling near‑term margin pressure and weaker profitability versus expectations. ScanSource (SCSC) Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: The company trimmed FY26 revenue guidance to $3.0–$3.1B (below Street ~$3.2B), explicitly citing slower large‑deal activity — the guidance cut is the primary driver of investor concern about near‑term growth. ScanSource updates FY26 revenue guidance to $3B–$3.1B amid slower large deal activity and launches unified communications team
• Negative Sentiment: Market reaction and news coverage cite the misses and guidance cut as reasons for the sell‑off; near‑term sentiment will likely track upcoming deal flow and whether management can book larger transactions again. Why ScanSource (SCSC) shares are sliding today

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.