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PC Connection ( (CNXN) ) has provided an announcement.
On April 29, 2026, Connection reported first-quarter 2026 results showing net sales up 3% year on year to $721.9 million and gross billings up 4.3% to $1.0 billion, while net income jumped 27.8% to $17.2 million and diluted EPS rose to $0.68. The same day, the board declared a quarterly dividend of $0.20 per share, payable May 29, 2026 to shareholders of record on May 12, 2026, underscoring management’s confidence despite a mixed performance across segments.
Enterprise Solutions led growth with a 16.3% increase in net sales to $346.5 million and stronger margins, while Business Solutions posted mid-single-digit sales growth but slightly lower gross margin, and Public Sector Solutions saw a 31% sales decline even as its margin improved. Product demand was strongest in software and networking, and the company held SG&A roughly flat, absorbed $3.1 million in severance tied to cost reductions, maintained over $411 million in cash and investments, modestly repurchased shares, and increased trailing 12-month adjusted EBITDA by 7%, signaling ongoing emphasis on efficiency and positioning around customers’ transition from AI experimentation to production workloads.
Spark’s Take on CNXN Stock
According to Spark, TipRanks’ AI Analyst, CNXN is a Outperform.
The score is driven mainly by strong financial resilience (exceptionally low leverage) and a positive earnings call outlook (backlog strength, improving profitability, cost savings, and shareholder returns). Technicals are supportive with the stock above key moving averages, though momentum appears somewhat stretched. Valuation is fair but not notably cheap, and recent revenue contraction/cash-flow variability remain the primary fundamental risks.
To see Spark’s full report on CNXN stock, click here.
More about PC Connection
Connection (PC Connection, Inc.; NASDAQ: CNXN) is a Fortune 1000 information technology solutions provider serving business, government, healthcare, and education customers across the United States and internationally. The company delivers custom-configured IT products and services, including hardware, software, networking and accessories, through its Technology Integration and Distribution Center, specialized business units, and its GlobalServe subsidiary for global IT procurement and service management.
Connection Business Solutions focuses on small- and medium-sized businesses, offering rapid-response access to more than 460,000 brand-name IT products via technically trained account managers, print publications, and its e-commerce platform. The company emphasizes certified technical expertise, with thousands of professional certifications enabling it to address complex customer infrastructure and technology transformation needs in a competitive IT services market.
Average Trading Volume: 82,034
Technical Sentiment Signal: Strong Buy
Current Market Cap: $1.61B
See more insights into CNXN stock on TipRanks’ Stock Analysis page.