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ePlus (PLUS) Stock Trades Up, Here Is Why

PLUS Cover Image

What Happened?

Shares of IT solutions provider ePlus (NASDAQ: PLUS) jumped 10.1% in the morning session after the company reported strong second-quarter 2025 results that significantly beat Wall Street's expectations for both revenue and profit. The company posted revenue of $637.3 million, up 17% year-on-year, which easily surpassed the analyst consensus of $516.7 million. The outperformance was even more pronounced on the bottom line, with GAAP earnings per share (EPS) of $1.43. This result was 55.4% higher than the consensus estimate of $0.92 and marked a substantial increase from the $1.02 reported in the same quarter of the previous year. This significant beat on key financial metrics demonstrated strong operational performance and boosted investor confidence.

Is now the time to buy ePlus? Access our full analysis report here, it’s free.

What Is The Market Telling Us

ePlus’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for ePlus and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 3.1% on the news that a surprisingly weak U.S. jobs report was released, fueling concerns about a slowing economy. The U.S. economy added only 73,000 jobs, falling significantly short of economists' expectations, while figures for May and June were revised down, erasing 258,000 previously reported jobs. The professional and business services industry itself shed 14,000 jobs. This data points to a cooling labor market, fueling concerns of a slowing economy. A weaker economic outlook often leads to reduced corporate spending on key services like IT consulting and professional staffing, which directly impacts the sector's revenue and growth prospects. The report immediately increased investor expectations of an interest rate cut by the Federal Reserve.

ePlus is down 5.9% since the beginning of the year, and at $69.60 per share, it is trading 31.5% below its 52-week high of $101.67 from October 2024. Investors who bought $1,000 worth of ePlus’s shares 5 years ago would now be looking at an investment worth $1,780.

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