olivLaw · US equity research
PC Connection, Inc. CNXN
Wholesale-Computers & Peripheral Equipment & Software · SIC 5045 · Vertical: Wholesale-Computers & Peripheral Equipment & Software (SIC 5045)
PC Connection is an IT solutions provider that sells hardware, software and services to large enterprises, small and mid-sized businesses and public institutions in the United States. Net sales rose 12.4% in the second quarter of 2026, supported by demand for infrastructure tied to artificial intelligence.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, PC Connection, Inc. (CNXN) stock was 87.81 USD (+0.31% on the day), with market capitalisation 2.2 bn USD, P/E 21.7 on diluted EPS of 4.05 USD over the last 12 months, dividend yield 0.39%, beta 0.66, 52-week range 55.83–95.22 USD. Latest reported quarter (Q3 2026): revenue of 874.3 m USD (+23.3% YoY), net income of 31.5 m USD (+27.2% YoY), diluted EPS 1.24 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 48.5
- neutral
- Bollinger (20, 2)
- 83.71 – 94.44
- in the lower half of the band · %B 0.38 · band width 12.0%
- SMA 50 / 200
- 87.33 / 72.83
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- -0.38 / -0.02
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −5.0% | −1.1% | −3.9 pp | — |
| 3 months | +2.2% | −0.5% | +2.6 pp | — |
| 6 months | +35.5% | +4.4% | +31.1 pp | — |
| Year to date | +52.0% | +12.3% | +39.7 pp | — |
| 1 year | +50.0% | +13.5% | +36.5 pp | +22.0% |
| 3 years | +47.2% | +76.4% | −29.2 pp | +102.0% |
| 5 years | +74.9% | +63.7% | +11.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 708.9 m | 701.0 m | 759.7 m | 709.1 m | 702.9 m | 721.9 m | 854.0 m | 874.3 m |
| Cost of revenue | 579.1 m | 573.7 m | 621.9 m | 570.4 m | 567.3 m | 589.1 m | 696.5 m | 712.5 m |
| Gross profit | 129.8 m | 127.3 m | 137.8 m | 138.6 m | 135.6 m | 132.7 m | 157.5 m | 161.9 m |
| SG&A | 107.1 m | 109.9 m | 106.9 m | 108.4 m | 108.9 m | 109.5 m | 114.5 m | 120.9 m |
| Operating income | 22.6 m | 14.5 m | 30.9 m | 30.3 m | 23.6 m | 20.2 m | 43.0 m | 41.0 m |
| Depreciation & amortisation | 1.9 m | 3.1 m | 2.9 m ≈ | 2.9 m ≈ | 1.6 m | 2.8 m | 2.7 m ≈ | 2.6 m ≈ |
| Pre-tax income | 27.3 m | 18.5 m | 34.1 m | 34.0 m | 27.2 m | 23.6 m | 45.5 m | 43.4 m |
| Income tax | 6.6 m | 5.0 m | 9.3 m | 9.2 m | 6.5 m | 6.4 m | 12.4 m | 12.0 m |
| Net income | 20.7 m | 13.5 m | 24.8 m | 24.7 m | 20.7 m | 17.2 m | 33.2 m | 31.5 m |
| Diluted EPS | 0.78 ≈ | 0.51 | 0.97 | 0.97 | 0.82 ≈ | 0.68 | 1.31 | 1.24 |
| Operating cash flow | 25.2 m | -52.4 m | 26.3 m ≈ | 64.1 m ≈ | 27.4 m | 14.3 m | -63.8 m ≈ | 9.7 m ≈ |
| Capex | 2.4 m | 1.7 m | 1.6 m ≈ | 1.9 m ≈ | 2.2 m | 2.0 m | 1.9 m ≈ | 2.1 m ≈ |
| Dividends paid | 2.6 m | 3.9 m | 3.8 m ≈ | 3.8 m ≈ | 3.8 m | 5.0 m | 5.0 m ≈ | 5.0 m ≈ |
| Share repurchases | 4.6 m | 43.7 m | 16.7 m ≈ | 5.1 m ≈ | 10.7 m | 2.5 m | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 90 percentile of its own 40-quarter history (min 11.4, median 17.0, max 23.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.7 bn | 2.8 bn | 2.6 bn | 2.9 bn | 3.1 bn | 2.9 bn | 2.8 bn | 2.9 bn |
| Revenue YoY | −7.3% | +4.5% | −8.1% | +11.7% | +8.0% | −8.8% | −1.7% | +2.5% |
| Net income | 64.6 m | 82.1 m | 55.8 m | 69.9 m | 89.2 m | 83.3 m | 87.1 m | 83.7 m |
| Net income YoY | +17.7% | +27.1% | −32.1% | +25.4% | +27.6% | −6.7% | +4.6% | −3.9% |
| Diluted EPS | 2.41 | 3.10 | 2.12 | 2.65 | 3.37 | 3.15 | 3.29 | 3.27 |
| Diluted EPS YoY | +18.1% | +28.6% | −31.6% | +25.0% | +27.2% | −6.5% | +4.4% | −0.6% |
| net % | 2.4% | 2.9% | 2.2% | 2.4% | 2.9% | 2.9% | 3.1% | 2.9% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | 188.4 m | 166.3 m | 58.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 193.2 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 910.1 m USD
- Total assets
- 1.4 bn USD
- Debt / equity
- unavailable
- Current ratio
- 2.90x
- ROE
- 9.2%
- ROA
- 6.3%
- FCF margin
- 2.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.6 bn | 2.9 bn | 3.1 bn | 2.9 bn | 2.8 bn | 2.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 2.2 bn | 2.4 bn | 2.6 bn | 2.3 bn | 2.3 bn | 2.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 418.8 m | 464.6 m | 526.2 m | 511.7 m | 519.8 m | 539.3 m | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 345.7 m | 368.1 m | 405.6 m | 405.9 m | 422.3 m | 434.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Operating income | 72.1 m | 96.5 m | 120.6 m | 103.2 m | 97.1 m | 99.3 m | SEC (XBRL)· 24 Feb 2026verified |
| Depreciation & amortisation | 12.4 m | 11.0 m | 10.8 m | 11.4 m | 11.8 m | 10.5 m | SEC (XBRL)· 24 Feb 2026verified |
| EBITDA | 84.5 m ≈ | 107.5 m ≈ | 131.3 m ≈ | 114.6 m ≈ | 108.8 m ≈ | 109.8 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Interest expense | 107.0 k | — | — | — | — | — | SEC (XBRL)· 16 Mar 2021verified |
| Pre-tax income | 73.2 m | 96.5 m | 121.6 m | 113.1 m | 117.5 m | 113.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | 17.4 m | 26.6 m | 32.4 m | 29.8 m | 30.4 m | 30.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | 55.8 m | 69.9 m | 89.2 m | 83.3 m | 87.1 m | 83.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | 2.12 | 2.65 | 3.37 | 3.15 | 3.29 | 3.27 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 26.3 m | 26.4 m | 26.4 m | 26.4 m | 26.5 m | 25.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividend per share | 0.32 | 1.00 | 0.34 | — | — | — | SEC (XBRL)· 06 Mar 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 95.7 m | 108.3 m | 122.9 m | 145.0 m | 178.3 m | 193.2 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 611.0 m | 607.5 m | 610.3 m | 606.8 m | 611.4 m | 648.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Inventories | 140.9 m | 206.6 m | 208.7 m | 124.2 m | 95.1 m | 143.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 859.0 m | 932.4 m | 953.8 m | 1.0 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 61.5 m | 61.0 m | 59.2 m | 56.7 m | 52.5 m | 46.9 m | SEC (XBRL)· 24 Feb 2026verified |
| Goodwill | 73.6 m | 73.6 m | 73.6 m | 73.6 m | 73.6 m | 73.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 7.1 m | 5.9 m | 4.6 m | 3.4 m | 2.2 m | 989.0 k | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 1.0 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 266.8 m | 281.8 m | 232.6 m | 263.7 m | 300.2 m | 338.2 m | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 342.3 m | 374.6 m | 310.5 m | 328.0 m | 371.2 m | 420.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 379.0 m | 400.9 m | 333.7 m | 347.6 m | 388.4 m | 440.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 636.3 m † | 682.5 m † | 766.2 m † | 840.8 m † | 911.0 m † | 910.1 m † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 36.1 m | 57.8 m | 34.9 m | 198.0 m | 173.9 m | 65.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Capex | — | — | — | 9.6 m | 7.6 m | 7.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | — | — | — | 188.4 m ≈ | 166.3 m ≈ | 58.0 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -11.0 m | -8.7 m | -9.1 m | -160.2 m | -115.3 m | 42.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | -19.5 m | -36.4 m | -11.2 m | -15.7 m | -25.2 m | -93.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividends paid | 8.4 m | 34.6 m | 8.9 m | 8.4 m | 10.5 m | 15.3 m | SEC (XBRL)· 24 Feb 2026verified |
| Share repurchases | 10.2 m | — | — | 5.4 m | 12.4 m | 76.3 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.2 bn USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.47 – 66.75 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E55.86 – 66.75 (Mid 60.04)4 companies used · median multiple 14.8x · quartiles 13.8x – 16.5xINGM, PLUS, SCSC, SNX
- Dividend discount (DDM)4.47 – 6.01 (Mid 5.13)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 3.3% | 86 (vs peers) | 11% |
| FCF conversion · Quality | -20.1% | 0 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | -2.8% | 0 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | -1.0% | 0 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.7x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 21.7x | 20 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -0.9% | 0 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 1.4% | 21 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality43/100 · 2/3 factors with a value
- Returns· partial21/100 · 1/2 factors with a value
- Valuation11/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PC CONNECTION, INC. (CNXN). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 2.9 bn USD in 2025; YoY growth 2.5%; net margin 3.3%; ROE 10.9%.
The estimated value range is 30.16–36.38 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 32.58 USD, the price of 87.81 USD leaves a potential of -62.9% (value / price − 1) and a margin of safety of -169.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 3.3%
- Current ratio: 2.7x
What contradicts it
- FCF conversion: -20.1%
- Revenue CAGR 3Y: -2.8%
- EPS CAGR 3Y: -1.0%
- P/E (TTM): 21.7x
- FCF yield: -0.9%
- Shareholder yield (distributions): 1.4%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Wholesale-Computers & Peripheral Equipment & Software (SIC 5045) · same industry (4-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SNXTd Synnex Corporation | 18.4 bn | 14.0 | 14.9% | 1.8% | +6.9% | +51% / +134% |
| INGMIngram Micro Holding Corp | 6.0 bn | 13.2 | 10.9% | 0.8% | +9.5% | +22% / unavailable |
| PLUSePlus inc. | 2.4 bn | 19.0 | 12.0% | 5.1% | +22.1% | +1% / +43% |
| CNXNPc Connection, Inc. | 2.2 bn | 21.7 | 10.9% | 3.3% | +2.5% | +50% / +47% |
| SCSCScanSource, Inc. | 1.1 bn | 15.7 | 8.7% | 2.4% | +6.1% | +39% / +70% |
| CLMBClimb Global Solutions, Inc. | 803.2 m | 33.8 | 19.5% | 3.1% | +40.1% | +70% / +261% |
| CGTLCreative Global Technology Holdings Limited | 56.2 m | — | -84.9% | -63.2% | −40.6% | −79% / unavailable |
| PNSkycorp Solar Group Limited | — | — | -14.9% | -4.3% | +27.0% | −85% / unavailable |
1- and 3-year price returns: for CNXN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 48.29 Total return -45% · Per year -45% | 85.69 Total return -2% · Per year -2% | 129.51 Total return 47% · Per year 47% |
| 3 years | 40.27 Total return -54% · Per year -23% | 81.01 Total return -8% · Per year -3% | 135.36 Total return 54% · Per year 16% |
| 5 years | 33.58 Total return -62% · Per year -17% | 76.59 Total return -13% · Per year -3% | 141.47 Total return 61% · Per year 10% |
- Exit P/E± 20.25
- Net margin± 14.18
- Annual revenue growth± 12.51
- Annual dilution± 1.19
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
In brief
PC Connection is an IT solutions provider that sells hardware, software and services to large enterprises, small and mid-sized businesses and public institutions in the United States. Net sales rose 12.4% in the second quarter of 2026, supported by demand for infrastructure tied to artificial intelligence 13.
SWOT
Strengths
- The company has a broad supplier network and a very diverse catalogue, combined with a capable logistics center and technical certifications that allow it to offer more complex and profitable products 1.
- Higher sales and gross margin in the first half of 2026 show the business model can support growth and dividend payments 3.
Weaknesses
- Gross margins remain relatively thin, and profitability depends on the volume of lower-value product sales, which leaves the company exposed to price pressure 1.
- Sales are volatile and depend on customer IT budgets, and personnel costs could stay high if revenue falls sharply 1.
- Reliance on external suppliers and on supply chains in Asia exposes the company to production interruptions and tariff changes 1.
Opportunities
- Demand for artificial intelligence infrastructure, automation and cybersecurity could open new revenue from consulting and integration services 13.
- Enterprise migration to the cloud offers the chance to sell managed services, which carry higher margins than physical products 1.
- The small and mid-sized business segment, the most profitable in the structure, could keep growing if current demand is sustained 13.
Threats
- Manufacturers selling directly to end customers could reduce the role of resellers, and better-resourced competitors could take share 1.
- Lower government budgets or a temporary federal shutdown could hit sales in the public sector segment 1.
- Tariffs, inflation and component shortages could raise costs and compress margins, especially if prices cannot be adjusted quickly 12.
Risks
- Sales volatilitymedium
Financial results fluctuate because of customer demand, delays in new product launches and IT budgets, which can make it hard to cut personnel costs quickly 1.
- Competitive pressurehigh
Intense competition and aggressive pricing can reduce margins, particularly if larger rivals offer better terms or if manufacturers sell directly 1.
- Supply chainhigh
Production interruptions, memory shortages and trade restrictions could slow deliveries and raise product costs 1.
- Inflation and wagesmedium
Rising wages and general costs could exceed what customers are willing to pay, which would reduce the company's margins 1.
- Dependence on the public sectormedium
Changes in government spending policy or operating interruptions could delay contracts and affect the public sector segment 1.
Investment thesis
What would need to be true (bull case)
- Sales growth in the first half of 2026 and an improving gross margin suggest the business model can benefit from demand for AI and infrastructure modernization 3.
- If higher-margin services such as consulting and cloud management keep growing, the revenue mix could improve over time 1.
- Its product-neutral position and long-standing reputation may help the company win customers when manufacturers sell directly with difficulty 1.
What would break the thesis
- Gross margins remain modest, and sales growth could be offset by price pressure and higher component costs 12.
- Better-resourced competitors and manufacturers selling directly could reduce the company's market share over the long term 1.
- If government budgets or customers' IT spending decline, revenue could slow sharply 1.
What to watch
- Gross margin trends by segment, especially in Enterprise SolutionsQ3 2026
- Effect of the DRAM and NAND memory shortage on costs and deliveries2026
- Public sector sales in relation to government budget decisionsQ4 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
The business
The company presents itself as a global solutions provider that designs, deploys and supports IT environments from the desktop to the cloud, including computer systems, data center solutions, security, artificial intelligence, software and peripheral equipment 1. Its role is that of a value-added reseller: it does not manufacture hardware or software but sources products from manufacturers and distributors and combines them with configuration, integration and support services 1. Sales come through account managers, websites and direct responses to outreach, and the catalogue includes over 460,000 products from more than 1,600 suppliers 1. Net sales reached $2,872.7 million in fiscal 2025 1.
The business depends on shipping products quickly, so the company runs a certified integration and distribution center where custom configurations are prepared before dispatch 13. Design, integration and support services carry higher margins than plain product sales, and the company treats them as an important factor for improving gross margin 12.
Growth strategies include expanding IT solution services, building an artificial intelligence and automation offering under the CNXN Helix effort, migrating customers to cloud solutions and pursuing acquisitions or alliances that strengthen the portfolio 1. In July 2026 the company said demand for AI infrastructure supported sales 3.
Market context
The US IT market the company serves is largely served by local and regional value-added resellers, and manufacturers increasingly sell directly to customers through their own channels or online 1. The company argues that customers seek integrated solutions rather than individual products, which could offset the impact of direct sales by manufacturers 1. In 2025 demand was supported by higher desktop and software sales while networking and accessory sales declined 1.
Sales growth in the first half of 2026 points to solid demand, but the market remains sensitive to pricing, inflation and government budgets, which can delay purchases in the public sector 13.
Trends
- Artificial intelligencemixed
Demand for AI infrastructure and services could lift the company's revenue, but the company acknowledges that this market is hard to forecast and that it may need significant investment to keep pace with competitors 13.
- Shift to cloudmixed
Customer migration to cloud and SaaS changes the traditional distribution model but gives the company an opportunity to sell consulting and managed services 1.
- Inflation and costsheadwind
Inflation raises product and wage costs, and the company may not be able to pass all of these increases on to customers without weakening demand 1.
- Memory shortage and tariffsheadwind
A global shortage of DRAM and NAND memory is expected in 2026, and tariffs could raise the cost of imported products, with a direct effect on margins 12.
Competitive position
Competition is intense; the company names fellow national solutions providers such as CDW Corporation and Insight Enterprises as leaders, alongside manufacturers that sell directly such as Apple, Dell, Lenovo and HP, and online platforms 1. Competitors with greater resources or broader offerings can respond faster to market changes, and price pressure can reduce margins 1.
In AI services the company faces firms that build bespoke projects, such as Palantir and Scale.ai, and competitive pressure could grow as traditional computer sellers enter this market 1.
- CDW CorporationCDW
National IT solutions provider that the source identifies as a leader among resellers.
- Insight Enterprises, Inc.NSIT
National IT solutions and hardware provider named in the source as a principal competitor.
- AmazonAMZN
E-commerce platform with extensive online commercial networks that increasingly sells to business customers.
- Palantir and Scale.ai
Companies that develop bespoke artificial intelligence projects and compete in AI services.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report28 Oct 2026
- Current report28 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report14 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report13 May 2026Shareholder vote
- Quarterly report29 Apr 2026
- Current report29 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement27 Mar 2026
- Annual report24 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / PC Connection, Inc. · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / PC Connection, Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / PC Connection, Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.