Revenue in 2Q:F26 grew 23.4% year over year to $608.8 million, coming in well above our $518.0 million forecast. EPS also beat our estimate by a wide margin, growing 63% to $1.45, versus our $0.98 forecast. Demand was broad based. The recovery in hardware demand we saw in the first quarter followed through into the second quarter, with product sales rising 24.5% year over year. Service revenue also grew a 19.3%. The better-than-projected revenue growth produced stronger operating leverage and margin expansion. Management raised guidance for the year, with revenue now projected to grow in the mid-teens (from the high single digits) and EBITDA expected to grow at twice the rate of revenue (from the mid-teens). ePlus ended 2Q:F26 with no debt and near record cash of $402 million ($15.23 per share). The Board is using the company's increased financial strength to reward shareholders with the initiation of a $0.25 quarterly dividend and a new stock repurchase program. We raise our estimates and price target to $108 (from $92), based on an unchanged 20x our new F2027 EPS estimate of $5.38 (from $4.56). Given the company's track record of profits and a debt-free balance sheet, we assign the stock a Moderate risk rating.