ScanSource (NASDAQ: SCSC) Soars on Strong Q4 Earnings and MicroAge Acquisition

• ScanSource (NASDAQ: SCSC) reported non-GAAP diluted earnings of $1.46 per share, beating the cited $1.11 estimate by approximately 31.53%.
• Fourth-quarter net sales increased 17.3% year over year to $953.11 million, supported by strong hardware demand and broad-based growth in North America.
• ScanSource agreed to acquire MicroAge for $220.5 million in cash, expanding its capabilities in cloud computing, cybersecurity, data centers, artificial intelligence, and managed IT services.

ScanSource (NASDAQ: SCSC) is a technology distributor that provides hardware, software-as-a-service, connectivity, and cloud-service solutions through its channel partners. Its areas of focus include physical security, networking, communications, mobility, cloud computing, and connectivity.

ScanSource reported fourth-quarter GAAP net income of $25.62 million, or $1.24 per diluted share. This was up from GAAP net income of $20.09 million, or $0.88 per diluted share, in the same quarter of the previous year.

On a non-GAAP basis, net income increased 29.8% to $30.28 million, while diluted EPS increased 43.1% to $1.46 from $1.02 in the previous year. The $1.46 result exceeded the cited $1.11 estimate by approximately 31.53%. Compared with the separate $1.14 consensus estimate reported by other financial-data providers, the earnings surprise was approximately 28.07%.

Fourth-quarter net sales reached $953.11 million, representing an increase of 17.3% from $812.89 million in the previous year. The result exceeded both the cited $814.35 million estimate and the separate $821.95 million consensus reported by other sources.

ScanSource said the growth reflected strong hardware demand and broad-based expansion in North America. Specialty Technology Solutions generated $927.2 million in net sales, an increase of 17.6%, while Intelisys & Advisory sales increased 7.2% to $25.9 million.

Investors responded positively to the results and acquisition announcement. ScanSource shares rose approximately 19% in premarket trading and subsequently reached a record intraday price of $64.85. Because the share price changed significantly throughout the session, the original claim of a 28.4% increase should be tied to a specific intraday time if retained.

Alongside its earnings results, ScanSource announced a definitive agreement to acquire MicroAge, an IT solutions integrator and managed-services provider. The all-cash purchase price is $220.5 million, payable at closing. ScanSource expects the transaction to close during the quarter ending September 30, 2026, subject to regulatory approval and customary closing conditions.

MicroAge serves approximately 2,400 U.S. clients and has more than 200 employees. ScanSource expects the acquisition to add higher-margin capabilities and expand its presence in cloud computing, cybersecurity, data centers, artificial intelligence, and managed IT services. The company expects the transaction to increase its gross margin, adjusted EBITDA margin, and non-GAAP EPS during the first year following completion. 

Depending on the share price used, its trailing P/E ratio was approximately 16 before the post-earnings rally and approximately 18 near the reported intraday high. As of June 30, 2026, ScanSource held $88.4 million in cash and cash equivalents and had $101.4 million in total debt. Its debt-to-equity ratio was approximately 0.11–0.12. Although this indicates relatively modest leverage, ScanSource plans to finance the $220.5 million MicroAge acquisition with borrowings under its existing credit facility, which will increase debt if the transaction closes.