ScanSource, Inc. (SCSC) AI Stock Analysis

Established in 1992 and based in Greenville, South Carolina, ScanSource, Inc. distributes technology products and solutions across the United States, Canada, and international markets. The company operates through two segments: Specialty Technology Solutions and Modern Communications & Cloud. Specialty Technology Solutions provides enterprise mobile computing, data capture, barcode printing, point of sale (POS) systems, payments solutions, electronic physical security, access control, video surveillance, and networking infrastructure. Modern Communications & Cloud offers voice communication systems, video conferencing, wireless technologies, unified communications and collaboration tools, IP networks, and cloud services for vertical markets including education, healthcare, and government.

ScanSource grew revenue 6.1% in FY2026 to $3.23B, recovering from declines of 13.9% in FY2024 and 6.7% in FY2025. Over the five years from FY2021 to FY2026, revenue CAGR stood at 0.5%. Gross margin expanded to 13.6% in FY2026, up from 12.1% in FY2022. FY2026 operating margin was 3.1%, while net income climbed to $78.9M, yielding diluted EPS of $4.26. For the latest quarter ended June 30, 2026, quarterly revenue grew 17.3% year-over-year, and quarterly earnings grew 41.3% year-over-year. Trailing twelve-month operating margin was 3.5% on $3.23B in revenue.

As of June 30, 2026, ScanSource held $88.4M in cash and short-term investments alongside $110.9M in total debt, resulting in net debt of $22.5M. The debt-to-equity ratio was 0.12, and the current ratio was 1.76 against shareholders' equity of $910.8M. For FY2026, operating cash flow reached $123.1M and free cash flow was $113.8M. Capital expenditures were $9.3M, and the company allocated $97.9M to share buybacks, contributing to a 16.2% share count reduction over 5 years.

ScanSource trades at a trailing P/E of 16.5x and a forward P/E of 11.8x, compared to medians of 28.1x and 18.8x for its US-listed Technology peers. Its enterprise value to EBITDA ratio is 8.8x, below the peer group median of 16.6x, and price-to-sales is 0.4x versus the peer median of 2.8x. Over the past year, the stock returned 44.2%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock gained 61.9% compared to 83.0% for the S&P 500.

Wall Street coverage includes 1 Strong Buy and 3 Hold ratings among tracked analysts. The mean price target is $64.50, representing a 7.5% upside from the last close of $60.02. For the fiscal year ending June 30, 2027, analysts project revenue of $3.56B and EPS of $4.84, representing 14.2% EPS growth. ScanSource has beaten EPS estimates in 3 of the last 4 quarters. The next earnings date is November 5, 2026.

This page is an AI-written research summary of ScanSource, Inc. (SCSC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SCSC income statement, SCSC balance sheet, SCSC key metrics, SCSC analyst forecast, SCSC chart. See the SCSC stock overview for the latest quote and news.