PC Connection (NASDAQ:CNXN) Stock Price Up 7.6% After Strong Earnings

PC Connection, Inc. (NASDAQ:CNXN)’s stock price rose 7.6% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $64.97 and last traded at $64.73. Approximately 60,106 shares changed hands during trading, a decline of 20% from the average daily volume of 74,815 shares. The stock had previously closed at $60.15.

The company reported $0.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.05. PC Connection had a return on equity of 9.87% and a net margin of 2.91%.The company had revenue of $702.94 million for the quarter, compared to the consensus estimate of $735.49 million.

PC Connection Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Tuesday, February 17th will be given a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, February 17th. This represents a $0.80 annualized dividend and a dividend yield of 1.2%. This is a positive change from PC Connection’s previous quarterly dividend of $0.15. PC Connection’s dividend payout ratio is 18.58%.

PC Connection News Roundup

Here are the key news stories impacting PC Connection this week:

• Positive Sentiment: Q4 earnings beat consensus — CNXN reported $0.91 EPS vs. the $0.86 consensus (revenue missed). The EPS upside likely reassured investors on profitability and helped lift the stock. PC Connection (CNXN) Q4 Earnings Surpass Estimates
• Positive Sentiment: Dividend increase — the board raised the quarterly dividend to $0.20 (33% increase from $0.15), signaling confidence in cash flow and returning capital to shareholders (ex-dividend Feb 17). This supports investor demand for the stock given yield and buyback/dividend focus.
• Positive Sentiment: Management targets growth/market outperformance with expanded AI-enabled solutions — company commentary and analyst write-ups highlight a target to outperform peers by ~200 basis points, which frames Q4 results within a growth strategy that investors favor. Connection targets 200 basis point market outperformance in 2026 with expanded AI-enabled solutions
• Neutral Sentiment: Earnings release and company report provide full Q4 / FY details — investors can use the company release for guidance, segment performance and margin detail to refine models. Connection (CNXN) Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Full earnings call transcripts are available for deeper read — useful for pieces of management commentary on supply chain, AI strategy, and customer demand but not a direct near-term catalyst by themselves. PC Connection Q4 2025 earnings call transcript PC Connection (CNXN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Sidoti issued multiple small cuts to FY2026 and FY2027 EPS (and trimmed some quarterly estimates) — while changes are modest, analyst downgrades can temper upside and signal more conservative near-term estimates. This is a headwind that partially offsets the positive items above.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CNXN. Weiss Ratings reaffirmed a “hold (c)” rating on shares of PC Connection in a research note on Monday, December 29th. Zacks Research upgraded shares of PC Connection from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Institutional Trading of PC Connection

A number of large investors have recently made changes to their positions in CNXN. EverSource Wealth Advisors LLC lifted its position in PC Connection by 625.0% during the second quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company’s stock valued at $38,000 after purchasing an additional 500 shares during the period. PNC Financial Services Group Inc. lifted its holdings in shares of PC Connection by 196.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 629 shares of the company’s stock valued at $39,000 after buying an additional 417 shares during the period. Quarry LP bought a new position in shares of PC Connection during the 3rd quarter valued at $75,000. Russell Investments Group Ltd. boosted its stake in shares of PC Connection by 194.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,411 shares of the company’s stock worth $87,000 after buying an additional 931 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in shares of PC Connection by 535.3% in the second quarter. Tower Research Capital LLC TRC now owns 1,601 shares of the company’s stock worth $105,000 after acquiring an additional 1,349 shares during the period. 42.85% of the stock is currently owned by institutional investors.

PC Connection Price Performance

The business has a 50-day moving average of $59.05 and a 200 day moving average of $60.67. The company has a market cap of $1.71 billion, a PE ratio of 20.77, a PEG ratio of 1.74 and a beta of 0.83.

PC Connection Company Profile

PC Connection, Inc (NASDAQ: CNXN), now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection’s product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.