PC Connection Q4 Earnings Beat Expectations

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 4d ago

0mins

CNXN+3.46%

Should l Buy CNXN?

Source: seekingalpha

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.

Trade with 70% Backtested Accuracy

Stop guessing "Should I Buy CNXN?" and start using high-conviction signals backed by rigorous historical data.

CNXN

$67.92+Infinity%1D

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.

PC Connection Declares 33.3% Increase in Quarterly Dividend

3 days agoseekingalpha

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.

PC Connection, Inc. Reports Record Q4 2025 Earnings

3 days agoseekingalpha

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.