📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

By Category

📊 Sector Averages

About

PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding CNXN

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	58.0K	$3.4M	0.01%	Mar 2026
Steve Cohen Point72 Asset Management	55.0K	$3.2M	0.00%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management repeatedly used phrases like 'solid results', 'encouraged by several key trends', 'optimistic about our prospects', and provided specific guidance of outperforming the U.S. IT market by 200 basis points. They acknowledged challenges (licensing program reductions, tariff uncertainty) but framed them as manageable and temporary.

Q3 2025

Confident Specific

Management was upbeat, emphasizing record gross profit, margin expansion, and consistent execution even while acknowledging public sector headwinds. Language such as 'another solid quarter,' 'record gross profits,' and 'strong performance in business solutions' shows confidence backed by numbers.

Q4 2025

Confident Specific

Management repeatedly used terms like 'record growth profit,' 'strong execution,' 'disciplined approach,' and 'confidence' while providing specific figures (e.g., gross profit +4.5%, gross margin +100bps, adjusted EPS +16.7%). They directly acknowledged public sector headwinds and gave detailed segment performance, indicating a data-backed, assured tone.

Q1 2026 latest

Confident Specific

Management used phrases like 'solid start', 'execute with discipline and agility', and provided specific growth percentages (net sales +3%, gross profit +4.3%, margin +20bps), while acknowledging ongoing supply challenges and a dynamic economic landscape.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is slightly stronger after this call due to solid Q1 results with revenue and margin growth, record backlog, and accelerating AI adoption. However, supply chain uncertainty and lack of explicit forward guidance keep caution. Key metrics to watch next quarter: backlog conversion into revenue, trends in memory pricing and unit demand, and whether the PC refresh cycle sustains. If backlog clears with margin stability and AI adoption continues, thesis strengthens further; if supply constraints cause cancellations or margin compression, risks emerge.

AI-generated concall tone analysis · Updated 2026-06-09 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Connection Q1 2026 net sales $721.9M, gross profit +4.3%

Revenue & Profitability

Net sales grew 3% year-over-year to $721.9M. Gross profit increased 4.3% to $132.7M. Operating income rose 39.3% to $20.2M (adjusted $23.3M). Net income was $17.2M, up 27.8%. Diluted EPS was $0.68, adjusted $0.77.

Outlook

Management expects to outperform the U.S. IT market by 200 basis points in 2026. The PC refresh cycle and AI adoption are key tailwinds, but memory shortages and price increases introduce uncertainty. Backlog is at its highest since mid-2022, though some back-half softening is possible.

Growth Drivers

Growth was driven by endpoint devices, networking, services, and software including cloud and security. Retail net sales grew 20%, healthcare 15%, and financial services 17%. AI-enabled endpoints rose from <40% to nearly 70% of purchases, and Copilot revenue approached triple-digit growth.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Gross margin expanded 20 bps to 18.4%, aided by favorable mix and pricing discipline. SG&A fell to 15.2% of sales (down 50 bps). Operating margin improved to 2.8% (adjusted 3.2%). Management expects SG&A as a percentage of gross profit to see a small uptick for the rest of the year.

Key Risks

Risks include memory shortages and price inflation leading to unit volume declines, supply chain constraints causing order pull-ins or delays, and variability in customer ordering behavior. The public sector segment faced a year-over-year decline due to a large non-repeating federal contract.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-29

Record Q2 results with double-digit growth in net sales, gross profit, and all major segments, driven by strong demand for AI-ready infrastructure and digital transformation. Backlog remains high, and the company expects to outperform the U.S. IT market in 2026.

Q1 2026 Q1 2026 2026-04-29

Q1 2026 saw 3% net sales growth and 4.3% gross profit growth, with strong performance in Business and Enterprise Solutions offsetting Public Sector declines. Backlog reached its highest since mid-2022, and AI adoption is accelerating, though memory shortages and price inflation remain key risks.

Q4 2025 Q4 2025 2026-02-04

Record gross profit in Business and Enterprise Solutions offset public sector weakness, with gross billings up 2.9% and adjusted EPS up 16.7%. Cost actions and strong demand in AI, cloud, and security position the company to outperform the U.S. IT market in 2026.

Q3 2025 Q3 2025 2025-10-29

Record gross profit and margin expansion were achieved despite a 2.2% sales decline, with strong growth in business and enterprise segments offsetting public sector headwinds. Backlog reached a two-year high, and mid-single digit growth is expected for Q4 and 2026.

Q2 2025 Q2 2025 2025-07-30

Q2 2025 saw 3.2% revenue growth and record gross profit, but net income declined 5.2% due to lower gross margins from licensing changes. Strong backlog and pipeline support optimism for H2, with stable margins and positive cash flow expected.

📊 Analysis Methodology

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Investment Risk:
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