Connection Achieves Cisco Gold Provider Status, Expanding Security Offerings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
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Should l Buy CNXN?
Source: Newsfilter
- Global First Certification: Connection becomes the first partner globally to achieve Cisco's new global requirements, successfully earning Gold Provider status, which underscores its leadership in IT solutions.
- Enhanced Security Services: By passing audits for its Managed Firewall and Managed XDR services, Connection demonstrates industry-leading expertise in operationalizing security services that effectively help customers prevent, detect, and respond to threats.
- Increased Customer Trust: The Gold Provider certification reinforces customer trust in Connection's services, aligning with Cisco's updated high standards that ensure accountability, governance, and measurable service outcomes.
- Foundation for AI Innovation: This achievement lays the groundwork for Connection and Cisco to build the Cisco Secure AI Factory, empowering customers to adopt and scale AI with confidence, thereby enhancing the company's competitive position in the market.
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Analyst Views on CNXN
About CNXN
PC Connection, Inc. delivers custom-configured computer systems overnight from its ISO 9001:2015-certified technical configuration lab at its distribution center in Wilmington, Ohio. The Company provides a range of information technology (IT) solutions, from the desktop to the cloud, including computer systems, data center solutions, software and peripheral equipment, networking communication, and other products and accessories, which the Company purchases from manufacturers, distributors and other suppliers. The Company operates through three segments: Connection Enterprise Solutions, Connection Business Solutions and Connection Public Sector Solutions. Connection Enterprise Solutions segment is engaged in serving large enterprise customers. The Connection Business Solutions segment is engaged in serving small to medium-sized businesses (SMBs). Connection Public Sector Solutions segment is engaged in serving federal, state, and local government and educational institutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Connection Shares Decline, Analysts Bearish
- Poor Stock Performance: Over the last six months, Connection's shares have fallen to $56.50, resulting in a 9.5% loss for investors while the S&P 500 remained flat, indicating the company's weak market position.
- Disappointing Long-Term Revenue Growth: Connection's sales have grown at a sluggish 2.1% compounded annual growth rate over the past five years, significantly below industry standards, which may undermine investor confidence in its long-term viability.
- Weak EPS Growth: Although Connection's EPS grew at a modest 3.3% compounded annual growth rate over the last two years, surpassing its flat revenue, it still falls short of analyst expectations, revealing limited management adaptability to softer demand.
- Low Free Cash Flow Margin: With an average free cash flow margin of 3.3%, Connection lags behind its peers, restricting its ability to return capital to shareholders and potentially hindering future reinvestment opportunities.
See More
Connection Named Zebra's 2025 Partner of the Year for Revenue Growth
- Partner of the Year Recognition: Connection has been named Zebra Technologies' 2025 Partner of the Year, acknowledging its exceptional performance and sustained revenue growth in the IT solutions sector, highlighting its strong competitive position in the market.
- Significant Revenue Growth: The company achieved remarkable revenue growth over the past year, driving customer adoption of Zebra solutions through effective sales execution and solution expertise, further solidifying Zebra's market presence.
- Commitment to Customer Success: Connection focuses on modernizing operations, enhancing visibility, and increasing efficiency for customers using Zebra's industry-leading technologies, demonstrating its customer-first service philosophy that drives business development.
- Future Growth Outlook: CEO Tim McGrath emphasized the intention to expand collaboration with Zebra, aiming to help customers reduce complexity and drive growth, showcasing the company's leadership and market potential in technology solutions.
See More
Connection Achieves Cisco Gold Provider Status, Expanding Security Offerings
- Global First Certification: Connection becomes the first partner globally to achieve Cisco's new global requirements, successfully earning Gold Provider status, which underscores its leadership in IT solutions.
- Enhanced Security Services: By passing audits for its Managed Firewall and Managed XDR services, Connection demonstrates industry-leading expertise in operationalizing security services that effectively help customers prevent, detect, and respond to threats.
- Increased Customer Trust: The Gold Provider certification reinforces customer trust in Connection's services, aligning with Cisco's updated high standards that ensure accountability, governance, and measurable service outcomes.
- Foundation for AI Innovation: This achievement lays the groundwork for Connection and Cisco to build the Cisco Secure AI Factory, empowering customers to adopt and scale AI with confidence, thereby enhancing the company's competitive position in the market.
See More
PC Connection Declares 33.3% Increase in Quarterly Dividend
- Dividend Increase: PC Connection has declared a quarterly dividend of $0.20 per share, marking a 33.3% increase from the previous $0.15, reflecting enhanced profitability and commitment to shareholder returns.
- Yield Performance: The forward yield of 1.31% not only boosts investor return expectations but may also attract more income-seeking investors to the company's stock, enhancing its market appeal.
- Shareholder Arrangement: The dividend will be payable on March 6, with a record date of February 17 and an ex-dividend date also on February 17, ensuring that existing shareholders benefit from this distribution, thereby bolstering shareholder confidence.
- Market Performance Target: PC Connection aims for a 200 basis point market outperformance in 2026 through expanded AI-enabled solutions, indicating a proactive strategic positioning in technology innovation and market competitiveness.
See More
PC Connection, Inc. Reports Record Q4 2025 Earnings
- Performance Highlights: PC Connection achieved a record gross profit of $135.6 million in Q4 2025, reflecting a 4.5% year-over-year increase, indicating strong performance in Business and Enterprise Solutions despite challenges in the Public Sector.
- Sales Data: Total net sales reached $702.9 million, down 0.8% year-over-year primarily due to delays in public sector projects, while Enterprise Solutions saw an 11.9% increase in sales to $338.7 million, demonstrating robust market demand.
- Shareholder Returns: The Board authorized an additional $50 million for the share repurchase program and declared a $0.20 per share dividend, a 33% increase from the previous year, reflecting confidence in future cash flows and commitment to shareholders.
- Future Outlook: Management expects to outperform the U.S. IT market by 200 basis points in 2026, continuing to focus on high-value solutions in cloud, cybersecurity, and AI to drive long-term customer relationships and profitable growth.
See More
PC Connection Q4 Earnings Beat Expectations
- Earnings Beat: PC Connection reported a Q4 non-GAAP EPS of $0.91, exceeding expectations by $0.05, indicating a solid performance in profitability despite revenue challenges.
- Revenue Decline: The company’s revenue of $702.9 million represents a 0.8% year-over-year decline, missing market expectations by $32.59 million, highlighting challenges in achieving sales growth in a competitive landscape.
- Market Reaction Analysis: Although revenue fell short, the earnings beat may positively impact the stock price in the short term, as investors could remain optimistic about the company's profitability.
- Future Outlook: The company must implement strategies to address the revenue decline, potentially through product innovation or operational optimization to enhance market competitiveness and achieve sustainable growth.
See More
Connection Shares Decline, Analysts Bearish
- Poor Stock Performance: Over the last six months, Connection's shares have fallen to $56.50, resulting in a 9.5% loss for investors while the S&P 500 remained flat, indicating the company's weak market position.
- Disappointing Long-Term Revenue Growth: Connection's sales have grown at a sluggish 2.1% compounded annual growth rate over the past five years, significantly below industry standards, which may undermine investor confidence in its long-term viability.
- Weak EPS Growth: Although Connection's EPS grew at a modest 3.3% compounded annual growth rate over the last two years, surpassing its flat revenue, it still falls short of analyst expectations, revealing limited management adaptability to softer demand.
- Low Free Cash Flow Margin: With an average free cash flow margin of 3.3%, Connection lags behind its peers, restricting its ability to return capital to shareholders and potentially hindering future reinvestment opportunities.
See More
Connection Named Zebra's 2025 Partner of the Year for Revenue Growth
- Partner of the Year Recognition: Connection has been named Zebra Technologies' 2025 Partner of the Year, acknowledging its exceptional performance and sustained revenue growth in the IT solutions sector, highlighting its strong competitive position in the market.
- Significant Revenue Growth: The company achieved remarkable revenue growth over the past year, driving customer adoption of Zebra solutions through effective sales execution and solution expertise, further solidifying Zebra's market presence.
- Commitment to Customer Success: Connection focuses on modernizing operations, enhancing visibility, and increasing efficiency for customers using Zebra's industry-leading technologies, demonstrating its customer-first service philosophy that drives business development.
- Future Growth Outlook: CEO Tim McGrath emphasized the intention to expand collaboration with Zebra, aiming to help customers reduce complexity and drive growth, showcasing the company's leadership and market potential in technology solutions.
See More
Connection Achieves Cisco Gold Provider Status, Expanding Security Offerings
- Global First Certification: Connection becomes the first partner globally to achieve Cisco's new global requirements, successfully earning Gold Provider status, which underscores its leadership in IT solutions.
- Enhanced Security Services: By passing audits for its Managed Firewall and Managed XDR services, Connection demonstrates industry-leading expertise in operationalizing security services that effectively help customers prevent, detect, and respond to threats.
- Increased Customer Trust: The Gold Provider certification reinforces customer trust in Connection's services, aligning with Cisco's updated high standards that ensure accountability, governance, and measurable service outcomes.
- Foundation for AI Innovation: This achievement lays the groundwork for Connection and Cisco to build the Cisco Secure AI Factory, empowering customers to adopt and scale AI with confidence, thereby enhancing the company's competitive position in the market.
See More
PC Connection Declares 33.3% Increase in Quarterly Dividend
- Dividend Increase: PC Connection has declared a quarterly dividend of $0.20 per share, marking a 33.3% increase from the previous $0.15, reflecting enhanced profitability and commitment to shareholder returns.
- Yield Performance: The forward yield of 1.31% not only boosts investor return expectations but may also attract more income-seeking investors to the company's stock, enhancing its market appeal.
- Shareholder Arrangement: The dividend will be payable on March 6, with a record date of February 17 and an ex-dividend date also on February 17, ensuring that existing shareholders benefit from this distribution, thereby bolstering shareholder confidence.
- Market Performance Target: PC Connection aims for a 200 basis point market outperformance in 2026 through expanded AI-enabled solutions, indicating a proactive strategic positioning in technology innovation and market competitiveness.
See More
PC Connection, Inc. Reports Record Q4 2025 Earnings
- Performance Highlights: PC Connection achieved a record gross profit of $135.6 million in Q4 2025, reflecting a 4.5% year-over-year increase, indicating strong performance in Business and Enterprise Solutions despite challenges in the Public Sector.
- Sales Data: Total net sales reached $702.9 million, down 0.8% year-over-year primarily due to delays in public sector projects, while Enterprise Solutions saw an 11.9% increase in sales to $338.7 million, demonstrating robust market demand.
- Shareholder Returns: The Board authorized an additional $50 million for the share repurchase program and declared a $0.20 per share dividend, a 33% increase from the previous year, reflecting confidence in future cash flows and commitment to shareholders.
- Future Outlook: Management expects to outperform the U.S. IT market by 200 basis points in 2026, continuing to focus on high-value solutions in cloud, cybersecurity, and AI to drive long-term customer relationships and profitable growth.
See More
PC Connection Q4 Earnings Beat Expectations
- Earnings Beat: PC Connection reported a Q4 non-GAAP EPS of $0.91, exceeding expectations by $0.05, indicating a solid performance in profitability despite revenue challenges.
- Revenue Decline: The company’s revenue of $702.9 million represents a 0.8% year-over-year decline, missing market expectations by $32.59 million, highlighting challenges in achieving sales growth in a competitive landscape.
- Market Reaction Analysis: Although revenue fell short, the earnings beat may positively impact the stock price in the short term, as investors could remain optimistic about the company's profitability.
- Future Outlook: The company must implement strategies to address the revenue decline, potentially through product innovation or operational optimization to enhance market competitiveness and achieve sustainable growth.
See More
