Why ePlus (PLUS) Could Benefit From Rising Corporate IT Spending

In the second quarter of 2026, investment management firm First Pacific Advisors reported that its small-cap value fund outperformed the Russell 2000 Value Index and S&P 600 Index. The fund's technology sector experienced significant growth, with holdings increasing by 72.39%, contributing 14.87 percentage points to the fund's returns.

Small-cap earnings growth accelerated compared to large-cap earnings. While the fund trimmed appreciated technology holdings during the AI-driven rally, it maintained a bottom-up investment approach, avoiding beaten-down SaaS stocks due to the varied outcomes of AI-related investments.

ePlus (NASDAQ:PLUS), a technology solutions and professional services provider specializing in IT infrastructure, cloud, cybersecurity, and digital transformation, was highlighted by the fund in its Q2 2026 investor letter. The company, which became an addition to the portfolio in 2025, is a value-added reseller (VAR) with a customer consultation-focused business model.

FPA Queens Road Small Cap Value Fund believed that companies like ePlus are broadly exposed to corporate IT spending, tend to grow faster and with less volatility than industrial distributors.

The fund's technology holdings contributed significantly to the fund's returns, with the sector surging nearly 100% in the first half of 2026. However, First Pacific Advisors acknowledged the risk associated with ePlus and prioritized AI stocks that offered greater return potential within a shorter time frame. The fund eliminated capital gains of $62 million in Q2 2026 and approximately $140 million year-to-date, maintaining a cash position of 10.2% at the end of the quarter. ePlus closed at approximately $87.28 per share on August 31, 2026, with a market capitalization of about $2.30 billion.