PC Connection (NASDAQ:CNXN) Releases Earnings Results, Beats Expectations By $0.31 EPS

Posted by Brenda Bartman on Jul 31st, 2026

PC Connection (NASDAQ:CNXN – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $1.31 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.31, FiscalAI reports. PC Connection had a net margin of 3.21% and a return on equity of 11.02%. The company had revenue of $854.00 million for the quarter, compared to analyst estimates of $764.79 million.

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 Stock Up 1.8%

CNXN traded up $1.49 during midday trading on Friday, hitting $83.97. The company had a trading volume of 124,360 shares, compared to its average volume of 104,532. The stock’s 50 day moving average price is $73.88 and its 200 day moving average price is $65.81. PC Connection has a 52 week low of $54.97 and a 52 week high of $88.31. The company has a market capitalization of $2.12 billion, a price-to-earnings ratio of 22.22, a PEG ratio of 2.11 and a beta of 0.88.

PC Connection Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, August 11th will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, August 11th. PC Connection’s payout ratio is 23.26%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Weiss Ratings upgraded shares of PC Connection from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, June 3rd. Wall Street Zen upgraded PC Connection from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy”.

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More PC Connection News

Here are the key news stories impacting PC Connection this week:

Positive Sentiment: Record Q2 results beat expectations. PC Connection reported earnings of $1.31 per share, up from $0.97 a year earlier and well above the $1.00 consensus estimate. Revenue reached $854 million versus expectations of approximately $765 million, providing evidence of strong demand for its technology solutions. Connection Reports Second Quarter 2026 Results
Positive Sentiment: Dividend supports shareholder returns. The board declared a quarterly dividend of $0.20 per share, payable August 28 to shareholders of record August 11. The dividend announcement accompanied the record quarterly results and signals continued confidence in cash generation. PC Connection Posts Record Q2 Results, Raises Dividend
Positive Sentiment: Sidoti raised its full-year outlook. The analyst increased its FY2026 EPS estimate to $4.08 from $3.93 and its FY2027 estimate to $4.55 from $4.44. These forecasts are above the current full-year consensus estimate of $3.93, suggesting potential for earnings upside if operating momentum continues.
Neutral Sentiment: Relative performance remains a focus. A Zacks comparison examines CNXN’s year-to-date performance against CarMax and other retail-wholesale companies, which may influence investor views of whether the recent rally is company-specific or part of a broader sector trend. Is PC Connection Stock Outpacing Its Retail-Wholesale Peers This Year?
Negative Sentiment: Some near-term estimates were reduced. Sidoti lowered its Q3 and Q4 2026 EPS forecasts to $1.00 from $1.06 and $1.05, respectively, and made smaller cuts to Q1 and Q4 2027 estimates. The revisions indicate possible caution about near-term earnings momentum, partially offsetting the strong results and longer-term upgrades.

Insider Activity

In other news, Chairman Patricia Gallup sold 7,384 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $71.91, for a total value of $530,983.44. Following the completion of the sale, the chairman directly owned 7,027,747 shares in the company, valued at $505,365,286.77. This trade represents a 0.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Over the last quarter, insiders have sold 28,592 shares of company stock worth $2,048,512. 56.60% of the stock is owned by corporate insiders.

Institutional Trading of PC Connection

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its holdings in PC Connection by 22.1% in the fourth quarter. Invesco Ltd. now owns 219,220 shares of the company’s stock worth $12,662,000 after acquiring an additional 39,716 shares in the last quarter. Vident Advisory LLC grew its stake in PC Connection by 10.1% in the fourth quarter. Vident Advisory LLC now owns 9,782 shares of the company’s stock valued at $565,000 after acquiring an additional 901 shares during the period. Verdad Advisers LP bought a new stake in shares of PC Connection during the fourth quarter valued at approximately $473,000. Numerai GP LLC bought a new stake in shares of PC Connection during the fourth quarter valued at approximately $1,692,000. Finally, Guggenheim Capital LLC acquired a new position in shares of PC Connection during the fourth quarter worth approximately $254,000. 42.85% of the stock is owned by institutional investors.

PC Connection Company Profile

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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.