ScanSource Inc

IT distribution and solutions stocks reported strong second-quarter results, with the eight companies tracked beating revenue consensus estimates by 9.9% and guiding next quarter's revenue 10.4% above expectations. Despite the outperformance, shares of the group have fallen 5.1% on average since reporting. CDW posted revenue of $6.57 billion, up 10% year over year and 5.2% above estimates, but its stock dropped 10.8% to $137.30. TD SYNNEX led with revenue of $19.57 billion, up 31% and 16.6% above estimates, yet its shares fell 10.5% to $247.96. ScanSource delivered the biggest beat at 18.8% above estimates with revenue of $953.1 million, and its stock rose 5.5% to $54.23.

ScanSource shares surged 9.7% after the company reported fourth-quarter 2026 earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.11 per share. Advance Auto Parts shares plunged 24.6% after the company reported second-quarter 2026 revenues of $2 billion, missing the Zacks Consensus Estimate by 1.66%. Deere & Company shares rose 6.9% after the company reported third-quarter 2026 earnings of $5.1 per share, beating the Zacks Consensus Estimate of $4.79 per share. Nordson Corporation shares rose 8% after the company reported third-quarter 2026 earnings of $3.25 per share, beating the Zacks Consensus Estimate of $3.09 per share.

ScanSource reported a 17% year-over-year increase in fourth-quarter sales, driven by disciplined execution and a broad-based recovery in demand for physical security, mobility, and networking technologies. The company posted record non-GAAP earnings per share of $1.46 for the quarter, supported by mid-teen growth in net sales and gross profits. Management announced the acquisition of MicroAge, expected to close by the end of the first quarter of fiscal 2027, to expand its total addressable market into AI, cybersecurity, and data center solutions. Organic revenue growth for fiscal 2027 is projected between 6% and 10%, with higher growth expected in the first half due to easier comparisons. The company also noted supply chain constraints for Juniper networking products that will limit sales fulfillment in the first half before easing in the second half.

ScanSource, Inc. has agreed to acquire MicroAge, a leading IT solutions integrator and managed services provider, in an all-cash transaction valued at $220.5 million. The deal is expected to close in the quarter ending September 30, 2026, subject to regulatory approval and customary conditions. MicroAge serves approximately 2,400 U.S. clients with more than 200 associates and holds partnerships with Microsoft, Dell, Sophos, HPE, CrowdStrike, and VMware. ScanSource expects the acquisition to be accretive to gross profit margin, adjusted EBITDA margin, and non-GAAP EPS in the first year following close, and to be free cash flow positive. The transaction will be funded through borrowings under ScanSource's existing credit facility.

Hewlett Packard Enterprise is broadening its distribution agreement with ScanSource to include Juniper Networks products following its acquisition of Juniper. ScanSource, a foundational channel partner that has distributed HPE Aruba networking products across the US for nearly two decades, announced on June 30 that it will add Juniper products to its portfolio through its Launch Point program, which provides marketing strategies and sales support. The move expands the market reach of HPE's networking business, which includes an AI-enabled platform for managing wireless, wireline, and software-defined networks.

Hewlett Packard Enterprise has expanded its partnership with ScanSource to include HPE Juniper Networking, aiming to improve network performance and simplify operations for partners. On June 17, HPE also announced that Vultr selected HPE and NVIDIA for large-scale AI datacenter deployments using the NVIDIA GB300 NVL72 by HPE and NVIDIA Spectrum-X Ethernet networking. Additionally, HPE unveiled advancements in its self-driving networking strategy, including new AI data center networking, routing, and security innovations, along with new HPE Juniper Networking QFX Switches optimized for inferencing.