Company Reports Q1 Revenue of $721.87M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2026
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Should l Buy CNXN?
Reports Q1 revenue $721.87M, consensus $696.09M. "Our financial performance was strong as we experienced solid demand in Q1 for both our Enterprise and Business Solutions segments, driven in part by our customers moving from AI experimentation to AI production," said Timothy McGrath, President and Chief Executive Officer. McGrath continued, "We believe that our experienced team is well positioned to help our customers navigate through the waves of technology."
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Analyst Views on CNXN
About CNXN
PC Connection, Inc. provides a range of information technology (IT) solutions, from desktops to the cloud, including computer systems, data center solutions, security, artificial intelligence, software and peripheral equipment, networking communications, and other products and accessories. The Company operates through three segments, which include Enterprise Solutions, Business Solutions and Public Sector Solutions. The Enterprise Solutions segment offers its corporate customers a method of sourcing, evaluating, purchasing, and tracking a variety of IT products and services. The Business Solutions segment uses a combination of outbound inside sales, including some on-site sales solicitation by business development managers, and Internet sales through customized Internet Business Accounts, to reach these customers. The Public Sector Solutions segment uses a combination of outbound inside sales, including some on-site sales solicitation by business development managers.
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.
PC Connection Q1 2026 Earnings Call Insights
- Strong Financial Performance: PC Connection reported Q1 2026 diluted EPS of $0.68, exceeding analysts' estimate of $0.62, with net sales reaching $721.9 million, surpassing the expected $696.0935 million, demonstrating resilience amid supply chain challenges.
- Cost Control Measures: CFO Thomas Baker emphasized the company's high degree of expense discipline, with a 3% year-over-year reduction in headcount and a $3.1 million severance charge aimed at enhancing operating leverage to meet growing demand, ensuring profitability in a competitive market.
- Market Outlook: CEO Timothy McGrath indicated that despite an anticipated decline in public sector business, the company aims to outperform the U.S. IT market by 200 basis points in 2026, reflecting confidence in future demand, particularly as the PC refresh cycle continues.
- Ongoing Supply Chain Challenges: Management highlighted that memory constraints and price increases have impacted customer behavior, and while uncertainty persists, the company is addressing potential double order risks through strict non-cancelable purchase order policies to ensure order quality and predictability.
See More
Connection Achieves Dell Technologies Titanium Black Partner Status
- Titanium Black Status: Connection has achieved Dell Technologies Titanium Black Partner status for 2026, placing it among Dell's most strategic partners, which signifies its leadership in the rapidly evolving technology landscape and enhances its ability to support customers in achieving transformative outcomes.
- Strengthened Collaboration: Dell's Chief Partner Officer, Denise Millard, noted that Connection's inclusion will deepen both companies' capabilities in addressing customer challenges and planning for the future, further solidifying their partnership.
- Recognition of Team Expertise: Connection's CEO, Tim McGrath, emphasized that achieving Titanium Black status is a testament to the expertise and dedication of their teams, showcasing the company's ability to deliver scalable, end-to-end solutions that help customers tackle complex business challenges.
- Industry Leadership: As a Fortune 1000 company, Connection has been simplifying technology for customers since 1982, providing industry-leading technology solutions that enhance growth and productivity, earning high accolades within the industry.
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 Q1 2026 Earnings Call Insights
- Strong Financial Performance: PC Connection reported Q1 2026 diluted EPS of $0.68, exceeding analysts' estimate of $0.62, with net sales reaching $721.9 million, surpassing the expected $696.0935 million, demonstrating resilience amid supply chain challenges.
- Cost Control Measures: CFO Thomas Baker emphasized the company's high degree of expense discipline, with a 3% year-over-year reduction in headcount and a $3.1 million severance charge aimed at enhancing operating leverage to meet growing demand, ensuring profitability in a competitive market.
- Market Outlook: CEO Timothy McGrath indicated that despite an anticipated decline in public sector business, the company aims to outperform the U.S. IT market by 200 basis points in 2026, reflecting confidence in future demand, particularly as the PC refresh cycle continues.
- Ongoing Supply Chain Challenges: Management highlighted that memory constraints and price increases have impacted customer behavior, and while uncertainty persists, the company is addressing potential double order risks through strict non-cancelable purchase order policies to ensure order quality and predictability.
See More
Connection Achieves Dell Technologies Titanium Black Partner Status
- Titanium Black Status: Connection has achieved Dell Technologies Titanium Black Partner status for 2026, placing it among Dell's most strategic partners, which signifies its leadership in the rapidly evolving technology landscape and enhances its ability to support customers in achieving transformative outcomes.
- Strengthened Collaboration: Dell's Chief Partner Officer, Denise Millard, noted that Connection's inclusion will deepen both companies' capabilities in addressing customer challenges and planning for the future, further solidifying their partnership.
- Recognition of Team Expertise: Connection's CEO, Tim McGrath, emphasized that achieving Titanium Black status is a testament to the expertise and dedication of their teams, showcasing the company's ability to deliver scalable, end-to-end solutions that help customers tackle complex business challenges.
- Industry Leadership: As a Fortune 1000 company, Connection has been simplifying technology for customers since 1982, providing industry-leading technology solutions that enhance growth and productivity, earning high accolades within the industry.
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
