PC Connection (NASDAQ:CNXN) Announces Quarterly Earnings Results

PC Connection (NASDAQ:CNXN) issued its earnings results on Wednesday. The company reported $1.31 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.31, FiscalAI reports. The business had revenue of $854.00 million for the quarter, compared to the consensus estimate of $764.79 million. PC Connection had a net margin of 3.02% and a return on equity of 10.17%.

Here are the key takeaways from PC Connection’s conference call:

• Connection reported record net sales of $854 million, up 12.4% year over year, with gross profit rising 14.3% to $157.5 million and operating income increasing 39.2% to a record $43 million. Diluted EPS grew 35.1% to $1.31.
• Growth was broad-based, including a 19.5% increase in notebooks, mobility and desktops, 15% software growth, and 11.5% networking growth. Business Solutions and Enterprise Solutions posted double-digit sales growth and both ended the quarter with elevated or record backlogs.
• Management said customer investment remains strong in data-center modernization, cybersecurity, cloud, AI-ready endpoints and enterprise AI infrastructure, and expects to outperform the U.S. IT market by approximately 200 basis points in 2026.
• Management expects third-quarter revenue to decline sequentially and grow at a high-single-digit rate year over year, partly due to Microsoft’s June year-end, typical seasonal patterns, and purchases pulled forward ahead of potential price increases. Some supply-chain-related backlog may not be fulfilled until the fourth quarter.
• First-half operating cash flow was negative $49.5 million as inventory increased by $61.5 million and accounts receivable rose by $80.6 million. Management expects inventory to decline somewhat by year-end, but receivables may remain elevated if current business levels persist.

PC Connection Price Performance

NASDAQ CNXN traded down $0.13 on Wednesday, hitting $82.97. The company had a trading volume of 136,326 shares, compared to its average volume of 103,223. The company has a market capitalization of $2.09 billion, a PE ratio of 24.12, a PEG ratio of 2.07 and a beta of 0.88. The company’s fifty day moving average price is $73.15 and its 200-day moving average price is $65.46. PC Connection has a 12-month low of $54.97 and a 12-month high of $84.81.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Weiss Ratings raised shares of PC Connection from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, June 3rd. Wall Street Zen raised shares of PC Connection from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, PC Connection currently has an average rating of “Moderate Buy”.

Insider Buying and Selling

In other news, Chairman Patricia Gallup sold 7,142 shares of PC Connection stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $72.86, for a total value of $520,366.12. Following the sale, the chairman directly owned 7,006,321 shares of the company’s stock, valued at $510,480,548.06. The trade was a 0.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. In the last ninety days, insiders sold 28,592 shares of company stock worth $2,048,512. 56.60% of the stock is currently owned by insiders.

Institutional Trading of PC Connection

A number of hedge funds have recently bought and sold shares of the business. Amundi purchased a new position in PC Connection during the first quarter worth approximately $519,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in PC Connection by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,900 shares of the company’s stock valued at $431,000 after buying an additional 312 shares during the period. Millennium Management LLC lifted its position in PC Connection by 98.8% in the first quarter. Millennium Management LLC now owns 115,237 shares of the company’s stock valued at $7,193,000 after buying an additional 57,257 shares during the last quarter. Invesco Ltd. lifted its position in PC Connection by 2.4% in the second quarter. Invesco Ltd. now owns 179,487 shares of the company’s stock valued at $11,807,000 after buying an additional 4,146 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in PC Connection by 625.0% during the second quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company’s stock worth $38,000 after buying an additional 500 shares during the period. Institutional investors and hedge funds own 42.85% of the company’s stock.

PC Connection Company Profile

PC Connection, Inc (NASDAQ: CNXN), now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection’s product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.