PC Connection (NASDAQ:CNXN) Posts Earnings Results, Beats Expectations By $0.05 EPS

PC Connection (NASDAQ:CNXN) announced its earnings results on Wednesday. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.05, FiscalAI reports. PC Connection had a return on equity of 9.61% and a net margin of 2.91%.The firm had revenue of $702.94 million for the quarter, compared to the consensus estimate of $735.49 million.

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

• Business Solutions and Enterprise Solutions delivered record gross profit and margin expansion, with Business Solutions gross margin up 160 bps and Enterprise Solutions net sales up 11.9%, driving outperformance versus expectations.
• The Public Sector business declined sharply, with net sales down 36.8% due to a non‑repeating project and K‑12 rollout delays, creating an almost $30–$40 million near‑term headwind into Q1 2026.
• Consolidated profitability improved as gross profit rose 4.5% to $135.6 million, gross margin expanded 100 bps to 19.3%, and adjusted diluted EPS increased 16.7% to $0.91 despite slightly lower net sales.
• Management executed a voluntary retirement and additional reductions (Q4 charges of $3.1M; $5.9–$6.2M expected across Q4/Q1) that are projected to deliver roughly $7–$8M of annual cost savings and support improved operating leverage.
• Capital returns and liquidity remain strong — the company returned $91.4M in 2025, added $50M to its buyback program, raised the quarterly dividend 33% to $0.20 per share, and ended Q4 with $406.7M in cash and short‑term investments.

PC Connection Price Performance

CNXN traded up $2.86 during trading on Thursday, reaching $61.65. 7,469 shares of the company’s stock were exchanged, compared to its average volume of 75,691. PC Connection has a 1 year low of $54.97 and a 1 year high of $73.31. The company’s fifty day simple moving average is $58.71 and its 200-day simple moving average is $60.62. The stock has a market capitalization of $1.56 billion, a P/E ratio of 19.09, a price-to-earnings-growth ratio of 1.55 and a beta of 0.83.

PC Connection Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Tuesday, February 17th will be issued a $0.20 dividend. This is a boost from PC Connection’s previous quarterly dividend of $0.15. The ex-dividend date is Tuesday, February 17th. This represents a $0.80 annualized dividend and a yield of 1.3%. PC Connection’s dividend payout ratio is currently 18.58%.

Wall Street Analysts Forecast Growth

CNXN has been the topic of a number of research analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of PC Connection in a research note on Monday, December 29th. Zacks Research raised shares of PC Connection from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of “Hold”.

Institutional Investors Weigh In On PC Connection

Several hedge funds have recently added to or reduced their stakes in CNXN. Amundi acquired a new stake in PC Connection during the 1st quarter worth about $519,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in PC Connection by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,900 shares of the company’s stock worth $431,000 after acquiring an additional 312 shares during the period. Millennium Management LLC lifted its holdings 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 acquiring an additional 57,257 shares during the period. Invesco Ltd. grew its stake in shares of PC Connection by 2.4% during the 2nd quarter. Invesco Ltd. now owns 179,487 shares of the company’s stock worth $11,807,000 after purchasing an additional 4,146 shares during the period. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of PC Connection by 625.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company’s stock valued at $38,000 after purchasing an additional 500 shares in the last quarter. 42.85% of the stock is owned by hedge funds and other institutional investors.

About PC Connection

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.