Fool - Investing News·Jun 30, 2026
Chairman Sells 14,000 PC Connection Shares for $998,000As a national IT solutions provider serving diverse U.S. clients, this tech distributor reported a notable insider sale in recent filings.
PC Connection, Inc.(CNXN)Earnings, Financials & Key Ratios
CNXN•NASDAQ
$73.48
22.5× P/E·Price updated Jul 6, 2026
AboutPC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories, as well as provides services related to design, configuration, and implementation of IT solutions. The company markets its products and services through its websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) that include small office/home office customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales, and marketing programs targeted to specific customer populations, as well as through digital, web, and print media advertising. The company was founded in 1982 and is headquartered in Merrimack, New Hampshire.Show more
- Revenue$2.87B+2.5%
- EBITDA$117M+6.3%
- Net Income$84M-3.9%
- EPS (Diluted)3.27-0.6%
- Gross Margin18.77%+1.2%
- EBITDA Margin4.07%+3.7%
- Operating Margin3.56%+2.9%
- Net Margin2.91%-6.2%
- ROE9.19%-7.5%
CNXN Price & Volume
PC Connection, Inc. (CNXN) stock price & volume — 10-year historical chart
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Volatile Revenue Cycles Challenge Margin Stability
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Fortress
Cash Flow:Mixed
Primary Risk:Thin operating margin sensitivity
Key Thesis Takeaways
- PC Connection maintains a fortress balance sheet with a debt-to-equity ratio near 0.00%, providing a significant buffer against the inherent volatility of its IT distribution model.
- However, the company faces structural headwinds as operating margins contracted to 3.4% in 2026Q1, and top-line growth remains inconsistent, fluctuating between a 13.1% contraction and a 10.9% expansion over the last ten quarters.
- Investors should monitor the impact of stock-based compensation, which reached $2.6 million in 2026Q1, alongside the persistent risk of OEM disintermediation that may further pressure long-term profitability.
Verdict Logic
while the company maintains a strong liquidity position with $196.3 million in cash, the current P/E of 21.84 appears elevated given the inconsistent revenue growth and the structural pressure on operating margins.
CNXN Growth Metrics
PC Connection, Inc. (CNXN) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years1.1%
5 Years2.09%
3 Years-2.77%
TTM0.78%
Profit CAGR
10 Years5.98%
5 Years8.47%
3 Years-2.1%
TTM0.05%
EPS CAGR
10 Years6.39%
5 Years9.05%
3 Years-1%
TTM4.24%
Return on Capital
10 Years14.52%
5 Years12.86%
3 Years11.46%
Last Year11.01%
CNXN Recent Earnings
PC Connection, Inc. (CNXN) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 9/12 qtrs (75%)●Beat Revenue 5/12 qtrs (42%)
Q2 2026Latest
Apr 29, 2026Metric
Actual
Est
EPS
$0.77+24.2%
$0.62
Rev
$722M+3.7%
$696M
Q1 2026
Feb 4, 2026Metric
Actual
Est
EPS
$0.91+5.8%
$0.86
Rev
$703M-4.4%
$735M
Q4 2025
Oct 29, 2025Metric
Actual
Est
EPS
$0.97-4.0%
$1.01
Rev
$709M-3.6%
$735M
Q3 2025
Jul 30, 2025Metric
Actual
Est
EPS
$0.97+6.6%
$0.91
Rev
$760M-2.0%
$775M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 29, 2026 | $0.77vs $0.62+24.2% | $722Mvs $696M+3.7% |
| Q1 2026 | Feb 4, 2026 | $0.91vs $0.86+5.8% | $703Mvs $735M-4.4% |
| Q4 2025 | Oct 29, 2025 | $0.97vs $1.01-4.0% | $709Mvs $735M-3.6% |
| Q3 2025 | Jul 30, 2025 | $0.97vs $0.91+6.6% | $760Mvs $775M-2.0% |
Based on last 12 quarters of dataView full earnings history →
Latest CNXN News
Recent stock market news and headlines for PC Connection, Inc. (CNXN)
Business Wire·Jun 16, 2026
Connection Recognized as Dell's 2026 North America Channel Services Sales Partner of the YearMERRIMACK, N.H.--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading provider of information technology solutions to business, government, healthcare, and education markets, is proud to announce that it has been named the 2026 Dell Technologies North America Channel Services Sales Partner of the Year. This prestigious recognition highlights Connection's commitment to delivering innovative, outcome-driven solutions and services that help organizations accelerate their digi.
Peers Comparison
Key metrics vs top competitors for PC Connection, Inc. (CNXN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $73.48 | $1.85B | 22.47 | 2.52% | 2.91% | 9.19% | 0.82% | |
| $134.19 | $17.14B | 16.61 | 6.79% | 4.7% | 42.37% | — | |
| $111.71 | $3.37B | 22.99 | -5.22% | 2.17% | 11.17% | — | |
| $238.92 | $19.11B | 24.01 | 6.94% | 1.63% | 13.12% | — | |
| $82.46 | $6.75B | 29.99 | -6.55% | 0.86% | 4.33% | — | |
| $197.82 | $10.12B | 18.10 | 10.49% | 2.17% | 11.03% | — |
Compare CNXN vs Peers
PC Connection, Inc. (CNXN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
CNXN SEC Filings & Documents
PC Connection, Inc. (CNXN) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 29, 2026·SEC
Material company update
Feb 4, 2026·SEC
Material company update
Oct 29, 2025·SEC
10-K Annual Reports
410-Q Quarterly Reports
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CNXN Frequently Asked Questions
PC Connection, Inc. (CNXN) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is PC Connection, Inc.'s revenue?
PC Connection, Inc. (CNXN) reported $2.89B in revenue for fiscal year 2025. This represents a 426% increase from $550.6M in 1997.
How fast is PC Connection, Inc. growing?
PC Connection, Inc. (CNXN) grew revenue by 2.5% over the past year. Growth has been modest.
Is CNXN profitable?
Yes, PC Connection, Inc. (CNXN) is profitable, generating $87.5M in net income for fiscal year 2025 (2.9% net margin).
Dividend & Returns
Does CNXN pay dividends?
Yes, PC Connection, Inc. (CNXN) pays a dividend with a yield of 0.82%. This makes it attractive for income-focused investors.
What is CNXN's return on equity?
PC Connection, Inc. (CNXN) has a return on equity (ROE) of 9.2%. This is below average, suggesting room for improvement.
What is PC Connection, Inc.'s free cash flow?
PC Connection, Inc. (CNXN) generated $124.4M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.