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PC Connection ( (CNXN) ) just unveiled an update.
On February 4, 2026, Connection reported its fourth-quarter and full-year 2025 results, showing modest top-line pressure but improved profitability metrics. Fourth-quarter 2025 net sales edged down 0.8% to $702.9 million, while gross billings rose 2.9% to $1.1 billion and gross profit climbed 4.5% to $135.6 million, lifting gross margin by 100 basis points to 19.3%; net income was stable at $20.7 million, with diluted EPS improving to $0.82 and adjusted diluted EPS to $0.91. Segment performance was mixed, with Business Solutions net sales up 4.2% and Enterprise Solutions up 11.9%, offset by a 36.8% drop in Public Sector Solutions sales, even as that segment posted record gross margin, and product mix shifted toward higher-margin software, which grew 24% and represented a larger share of sales. For full-year 2025, net sales increased 2.5% to $2.9 billion, gross billings grew 2.7% to $4.1 billion, gross profit rose 3.8% with margin expanding to 18.8%, while net income declined 3.9% to $83.7 million and diluted EPS slipped to $3.27, though adjusted diluted EPS improved to $3.44 and adjusted EBITDA rose 6% to $126.4 million. The company ended 2025 with $406.7 million in cash and short-term investments after repurchasing $10.7 million of stock in the fourth quarter, and on February 4, 2026 its board declared a quarterly dividend of $0.20 per share and approved a $50 million increase to the share repurchase program, bringing remaining authorization to $81.2 million, underscoring continued capital returns and confidence in its strategy to drive profitable growth in an AI-first IT landscape.
The most recent analyst rating on (CNXN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on PC Connection stock, see the CNXN Stock Forecast page.
Spark’s Take on CNXN Stock
According to Spark, TipRanks’ AI Analyst, CNXN is a Outperform.
PC Connection’s overall stock score reflects strong financial health and positive earnings call highlights, such as record gross profit and growth in key segments. However, the declining revenue trend, bearish technical indicators, and moderate valuation weigh on the score.
To see Spark’s full report on CNXN stock, click here.
More about PC Connection
Connection (PC Connection, Inc.; NASDAQ: CNXN) is a leading information technology solutions provider serving business, government, healthcare, and education customers, offering a broad mix of IT hardware, software, and services tailored to organizations modernizing their environments, including for AI-focused workloads.
Average Trading Volume: 76,415
Technical Sentiment Signal: Hold
Current Market Cap: $1.52B
For an in-depth examination of CNXN stock, go to TipRanks’ Overview page.