PC Connection (NASDAQ:CNXN) Releases Quarterly Earnings Results, Beats Estimates By $0.15 EPS

PC Connection (NASDAQ:CNXN) released its quarterly earnings results on Wednesday. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.62 by $0.15, FiscalAI reports. PC Connection had a return on equity of 9.87% and a net margin of 2.91%.The business had revenue of $721.87 million during the quarter, compared to analyst estimates of $698.84 million.

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

• Consolidated Q1 performance was strong — gross billings rose 4.3% to $1.0B, net sales increased 3.0% to $721.9M, gross profit grew 4.3% to $132.7M, and adjusted diluted EPS was $0.77, up 28.3% year‑over‑year.
• Enterprise Solutions led the quarter with net sales up 16.3% to $346.5M, gross profit up 18.7%, and a record backlog driven by strong endpoint demand that positions the segment for continued momentum.
• Public Sector net sales fell 31% to $99.8M due to a large, non‑recurring federal contract in the prior year, though management expects underlying stability and improvement later in 2026.
• Industry‑wide memory constraints drove price inflation and lower unit volumes; Connection proactively increased inventory (+$50.7M) to secure supply, but management warned this supply/pricing uncertainty could introduce timing variability and pressure in the back half of the year.
• Cost discipline and restructuring improved operating leverage — operating income rose 39.3% (adjusted margin 3.2%) — and the company retains strong liquidity with $411.4M in cash/short‑term investments while continuing dividends and share repurchases ($81.2M repurchase capacity remaining).

PC Connection Trading Up 0.9%

NASDAQ:CNXN traded up $0.59 during midday trading on Thursday, reaching $63.97. The company had a trading volume of 18,714 shares, compared to its average volume of 77,707. The firm has a market capitalization of $1.61 billion, a price-to-earnings ratio of 19.56, a PEG ratio of 1.69 and a beta of 0.83. The stock’s fifty day simple moving average is $60.98 and its 200-day simple moving average is $60.11. PC Connection has a 12-month low of $54.97 and a 12-month high of $71.17.

PC Connection Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Tuesday, May 12th will be issued a $0.20 dividend. The ex-dividend date is Tuesday, May 12th. This represents a $0.80 dividend on an annualized basis and a yield of 1.3%. PC Connection’s dividend payout ratio (DPR) is 24.46%.

Key PC Connection News

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

• Positive Sentiment: Earnings and revenue beat: CNXN reported Q1 EPS of $0.77 vs. consensus $0.62 and revenue of about $721.9M (above estimates). Operating profit and net income rose year‑over‑year, signaling margin improvement and better profitability. Connection Reports First Quarter 2026 Results
• Positive Sentiment: Quarterly dividend declared: the board approved $0.20/share quarterly dividend (annualized yield ~1.2%), payable May 29 to holders of record May 12 — supports income investors and signals confidence in the cash outlook. Connection Reports First Quarter 2026 Results
• Neutral Sentiment: Call/transcript details: Management commentary and the full earnings call transcript provide color on supply chain dynamics and demand trends; these details may guide near‑term expectations but didn’t materially change the headline beat. Q1 2026 Earnings Call Highlights Earnings Call Transcript
• Neutral Sentiment: Key metrics: modest gross margin expansion, ROE ~9.9% and net margin near 2.9% — steady profitability but not exceptionally high relative to peers. MarketBeat CNXN Summary
• Negative Sentiment: Cash flow and balance sheet concerns: cash from operations fell sharply year‑over‑year and total liabilities increased materially, which could limit financial flexibility and raise investor caution despite the earnings beat. QuiverQuant Q1 2026 Summary

Institutional Trading of PC Connection

Institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC increased its position in shares of 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 purchasing an additional 500 shares in the last quarter. PNC Financial Services Group Inc. increased its position in PC Connection by 196.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 629 shares of the company’s stock worth $39,000 after purchasing an additional 417 shares during the period. Quarry LP acquired a new position in PC Connection during the 3rd quarter worth approximately $75,000. Russell Investments Group Ltd. grew its holdings in shares of PC Connection by 194.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,411 shares of the company’s stock worth $87,000 after acquiring an additional 931 shares during the period. Finally, Tower Research Capital LLC TRC grew its holdings in shares of PC Connection by 535.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,601 shares of the company’s stock worth $105,000 after acquiring an additional 1,349 shares during the period. 42.85% of the stock is owned by hedge funds and other institutional investors.

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.