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Scansource (SCSC) Q3 FY26 earnings results (third quarter fiscal 2026)

10-Q filed May 7, 2026

Scansource (SCSC) reported revenue of $767M for the third quarter fiscal 2026 (Q3 FY26), +9% from a year earlier and 0% from the quarter before. Operating margin was 3.0%, net earnings $16.9M (2.2% of revenue).

Revenue$767M
Year over year+9%
Quarter over quarter0%
Operating margin3.0%
Net earnings$16.9M

Scansource, Q3 FY26: revenue $767M (+9% year over year), operating margin 3.0%, net earnings $16.9M, operating cash flow $71.4M. The chart follows the revenue to costs, profit and cash.

Q3 FY26AmountQ/QY/Y
Revenue$767M0%+9%
Gross profit$107M+4%+7%
Operating profit$23.1M+29%+3%
Net earnings$16.9M+2%-3%
Operating cash flow$71.4M+131%+8%
Free cash flow$69.0M+139%+7%

What changed

Revenue was $766.8M in Q3 FY26, up 9% year over year and roughly flat from the previous quarter. Products and services was the largest line at 95% of revenue. Products and services added $60.5M year over year (up 9%), 98% of the total change.

Gross margin was 14.0%, down 0.2 points from Q3 FY25. Operating profit was $23.1M, a 3.0% margin (down 0.2 points year over year). Of the extra revenue versus Q3 FY25, 1% reached operating profit, below the 3% margin then. Operating expenses grew 8% against revenue growth of 9%. The fastest-growing cost line was SG&A (+12%). Net earnings were $16.9M, down 3% year over year. The effective tax rate was 29.8%.

Operating cash flow was $71.4M (up 8% year over year), 423% of net earnings. Non-cash charges added back $5.7M of depreciation and amortization and $4.0M of share-based compensation. Working capital and other items added $44.8M. Capital expenditures of $2.4M left free cash flow of $69.0M.

Questions

What was Scansource's revenue in the third quarter fiscal 2026?

Scansource (SCSC) reported revenue of $767M for the third quarter fiscal 2026 (Q3 FY26), +9% from a year earlier and 0% from the quarter before.

Was Scansource profitable in the third quarter fiscal 2026?

Operating profit was $23.1M (3.0% of revenue) and net earnings $16.9M.

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Source: Scansource 10-Q on SEC EDGAR.