ScanSource (NASDAQ:SCSC) Trading Down 14% on Disappointing Earnings

ScanSource, Inc. (NASDAQ:SCSC) fell 14% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $36.87 and last traded at $38.1110. 7,414 shares changed hands during trading, a decline of 96% from the average session volume of 202,279 shares. The stock had previously closed at $44.33.

The industrial products company reported $0.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.00 by ($0.20). The company had revenue of $766.51 million for the quarter, compared to the consensus estimate of $782.46 million. ScanSource had a return on equity of 9.72% and a net margin of 2.48%.The business’s revenue was up 2.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.85 EPS.

Key Stories Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Management launched a unified communications team to pursue a growing segment and diversify deal flow, a strategic move that could lift higher‑margin services over time. ScanSource updates FY26 revenue guidance to $3B–$3.1B amid slower large deal activity and launches unified communications team
• Positive Sentiment: Conference call/transcript emphasized steady underlying growth and execution on strategic initiatives (product/channel focus and go‑to‑market adjustments), which could support recovery if large‑deal cadence improves. ScanSource Inc (SCSC) Q2 2026 Earnings Call Highlights: Steady Growth Amid Strategic Initiatives
• Neutral Sentiment: The company noted modest year‑over‑year revenue growth (~2.5%) and announced a governance refresh — positive for oversight but unlikely to move near‑term results materially. ScanSource Posts Modest Q2 Growth and Governance Refresh
• Negative Sentiment: Q2 EPS of $0.80 missed consensus (~$1.00) and declined from $0.85 last year, signalling near‑term margin pressure and weaker profitability versus expectations. ScanSource (SCSC) Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: The company trimmed FY26 revenue guidance to $3.0–$3.1B (below Street ~$3.2B), explicitly citing slower large‑deal activity — the guidance cut is the primary driver of investor concern about near‑term growth. ScanSource updates FY26 revenue guidance to $3B–$3.1B amid slower large deal activity and launches unified communications team
• Negative Sentiment: Market reaction and news coverage cite the misses and guidance cut as reasons for the sell‑off; near‑term sentiment will likely track upcoming deal flow and whether management can book larger transactions again. Why ScanSource (SCSC) shares are sliding today

Wall Street Analysts Forecast Growth

SCSC has been the topic of a number of recent analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of ScanSource in a report on Monday, December 29th. Wall Street Zen lowered shares of ScanSource from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Finally, Zacks Research cut shares of ScanSource from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 21st. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $42.50.

Insider Activity at ScanSource

In other ScanSource news, CFO Stephen Jones sold 5,020 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $42.30, for a total value of $212,346.00. Following the transaction, the chief financial officer directly owned 83,326 shares of the company’s stock, valued at $3,524,689.80. This represents a 5.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Michael L. Baur sold 9,559 shares of the firm’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $40.82, for a total transaction of $390,198.38. Following the transaction, the chief executive officer directly owned 191,971 shares in the company, valued at approximately $7,836,256.22. This represents a 4.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 25,020 shares of company stock worth $1,035,669 in the last ninety days. 3.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Abacus Wealth Partners LLC acquired a new stake in ScanSource during the fourth quarter worth about $313,000. Dana Investment Advisors Inc. lifted its holdings in shares of ScanSource by 7.3% during the 4th quarter. Dana Investment Advisors Inc. now owns 224,048 shares of the industrial products company’s stock worth $8,751,000 after acquiring an additional 15,196 shares during the period. Denali Advisors LLC boosted its position in shares of ScanSource by 5.6% during the 4th quarter. Denali Advisors LLC now owns 110,337 shares of the industrial products company’s stock worth $4,310,000 after acquiring an additional 5,896 shares in the last quarter. Strs Ohio boosted its position in shares of ScanSource by 4.5% during the 4th quarter. Strs Ohio now owns 16,300 shares of the industrial products company’s stock worth $637,000 after acquiring an additional 700 shares in the last quarter. Finally, Horizon Investments LLC increased its stake in ScanSource by 16.2% in the fourth quarter. Horizon Investments LLC now owns 15,039 shares of the industrial products company’s stock valued at $587,000 after acquiring an additional 2,098 shares during the last quarter. Institutional investors and hedge funds own 97.91% of the company’s stock.

ScanSource Trading Up 5.5%

The firm’s 50-day simple moving average is $40.95 and its 200 day simple moving average is $41.78. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.16 and a quick ratio of 1.32. The firm has a market capitalization of $841.29 million, a price-to-earnings ratio of 11.91, a P/E/G ratio of 0.72 and a beta of 1.28.

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.