Connection Reports Strong Q1 2025 Earnings Growth

Pc Connection ( (CNXN) ) has released its Q1 earnings. Here is a breakdown of the information Pc Connection presented to its investors.

PC Connection, Inc., operating under the name Connection, is a prominent information technology solutions provider serving business, government, healthcare, and education sectors, known for its custom-configured computer systems and extensive technical certifications. In its latest earnings report for the first quarter of 2025, Connection reported a 10.9% increase in net sales, reaching $701 million, alongside a modest rise in net income by 2.5% to $13.5 million. The company also announced a $50 million increase to its share repurchase program, reflecting a strong commitment to returning value to shareholders.

The company’s financial performance was marked by a 7.8% increase in gross profit, although the gross margin slightly decreased by 50 basis points to 18.2%. Notably, the Public Sector Solutions segment experienced a significant sales surge of 54.7%, driven by a 228% increase in federal government sales. Meanwhile, the Business Solutions and Enterprise Solutions segments showed steady growth, with net sales increasing by 1.0% and 5.4%, respectively.

Connection’s product mix saw notable growth in notebook/mobility and desktop sales, which rose by 21% year-over-year, now accounting for 50% of net sales. Software and servers/storage sales also experienced double-digit growth, while networking and accessories sales remained flat or decreased. Despite an increase in selling, general, and administrative expenses, the company maintained a stable operating margin of 2.1%.

Looking ahead, Connection’s management remains optimistic about future growth opportunities, emphasizing the demand for technology solutions that enhance operational efficiencies and productivity. The company’s strategic focus on digital workplace solutions and datacenter modernization is expected to continue driving profitability and shareholder value.