PC Connection (CNXN)
NASDAQ:CNXN
Want to see CNXN full AI Analyst Report?
Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.04Last Year’s EPS
0.97Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a generally positive operational and financial beat: consolidated sales, gross profit, operating income, net income and EPS all improved year-over-year, Enterprise and Business Solutions delivered strong growth, backlog is at a multi-year high, liquidity is robust, and the company received notable partner recognitions. Offsetting risks include a significant decline in Public Sector sales tied to a nonrecurring prior-year contract, ongoing supply-chain and memory-driven price volatility, a sizeable inventory build and working-capital absorption, a $3.1M severance charge, and management's caution about potential softening in the back half of 2026. Overall, the positive execution, margin expansion, cash position and capital returns outweigh the near-term operational headwinds and uncertainties.Company Guidance
Consolidated Revenue and Profit Growth
Gross billings grew 4.3% to $1.0 billion (from $978.9M). Total net sales were $721.9 million, up 3.0% year-over-year. Gross profit increased 4.3% to $132.7 million and consolidated gross margin expanded 20 basis points to 18.4%.
Strong Enterprise Solutions Performance
Enterprise Solutions net sales rose 16.3% to $346.5 million; gross profit increased 18.7% to $50.2 million. Gross billings grew 10.3% to $439.6 million and gross margin improved 30 basis points to 14.5%. Segment ended the quarter with a record backlog.
Business Solutions Growth and Record Profit
Business Solutions net sales increased 6.6% to $275.6 million. Gross profit reached a record $67.5 million (up 3.2%), and gross billings grew 9.3% to $446.0 million.
Improved Operating and Net Income Metrics
Operating income increased 39.3% to $20.2 million (33.4% ex-severance to $23.3M). Operating margin improved to 2.8% (3.2% excluding severance). Net income rose 27.8% to $17.2 million; diluted EPS was $0.68, up 33.4% ($0.17). Adjusted diluted EPS was $0.77, up 28.3% ($0.17).
Improved Adjusted EBITDA and Expense Discipline
Trailing 12-month adjusted EBITDA increased 7.5% to $132.3 million from $123.1 million. SG&A was 15.2% of net sales, down 50 basis points year-over-year, reflecting expense control and a 3% reduction in headcount.
Strong Liquidity and Capital Return
Ended the quarter with $411.4 million in cash, cash equivalents and short-term investments. Paid a quarterly dividend of $0.20 per share, repurchased ~42,000 shares for $2.4 million, and have $81.2 million remaining under the repurchase program.
Vertical Market Momentum
Notable vertical performance: Retail net sales +20% and gross profit +17%; Healthcare net sales and gross profit +15%; Financial Services net sales +17% and gross profit +12%, indicating broad-based demand across key verticals.
Partner & Solution Recognitions
Received strategic partner recognitions including Dell Technologies Titanium Black Partner, VMware Americas Rising Star Partner of the Year (2025) and Zebra Technologies 2025 Partner of the Year for top revenue growth.
CNXN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CNXN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $63.19 | $63.55 | +0.57% |
Feb 04, 2026 | $59.78 | $65.25 | +9.14% |
Oct 29, 2025 | $60.35 | $59.44 | -1.51% |
Jul 30, 2025 | $63.32 | $60.91 | -3.81% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does PC Connection (CNXN) report earnings?
PC Connection (CNXN) is schdueled to report earning on Aug 05, 2026, After Close (Confirmed).
What is PC Connection (CNXN) earnings time?
PC Connection (CNXN) earnings time is at Aug 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CNXN EPS forecast?
CNXN EPS forecast for the fiscal quarter 2026 (Q2) is 1.04.