PC Connection, Inc. (CNXN)

In the first quarter of 2025, PC Connection reported a 10.9% year-over-year increase in net sales to $701 million and an 8% increase in gross profit to $127.3 million, repurchasing 697,069 shares for $44.8 million and declaring a quarterly dividend of $0.15 per share. In the second quarter of 2025, net sales grew 3.2% year-over-year to $759.7 million, with non-GAAP profit per share exceeding estimates, and the company repurchased approximately 255,000 shares for $15.5 million. The company is scheduled to release its third-quarter 2025 operating results on October 29, 2025, with analysts anticipating a 2.6% increase in revenue and earnings of $1.01 per share. The stock's valuation grade shifted from attractive to fair, with some analysts downgrading the stock from "buy" to "hold" in August 2025.

Demand for PC Connection's products and services is influenced by economic conditions and technology refresh cycles. In Q1 2025, some customers accelerated purchases to avoid tariffs, while others delayed due to economic uncertainty. IT budgets are expected to improve in 2025, driven by data center and infrastructure projects, with AI and server consolidation as key drivers. Demand for Windows 11 refresh and AI PCs has contributed to momentum in mobility and desktop categories. The company's backlog was at its highest level in nearly two years at the end of Q1 and Q2 2025.

PC Connection, Inc., also known as Connection, is an IT solutions provider established in 1982 and based in Merrimack, New Hampshire. It operates in the Technology sector, focusing on Electronics & Computer Distribution and IT Distribution & Solutions. The company offers a range of IT products, including computer systems, software, peripherals, and networking equipment, along with IT solutions and services like cloud, cybersecurity, and managed services. PC Connection serves SMBs, large enterprises, and public sector organizations.

PC Connection, Inc. is headquartered in Merrimack, New Hampshire, and has sales and support offices in Keene, New Hampshire; Rockville, Maryland; Dakota Dunes, South Dakota; Boca Raton, Florida; Schaumburg, Illinois; and Exton, Pennsylvania. The company operates a 268,000-square-foot distribution and fulfillment complex with a technical configuration lab in Wilmington, Ohio. Through its GlobalServe subsidiary, PC Connection provides IT procurement solutions in 174 countries with a network of over 500 suppliers.

PC Connection has maintained a positive brand reputation, being recognized twice by Newsweek as one of "America's Most Trustworthy Companies." In May 2025, Connection achieved Microsoft Security Specializations in all four solution areas. In June 2025, Connection won the Lenovo 360 Nationals Partner of the Year U.S. Award. The company also announced the winners of its 5th Annual IT Superhero Awards in October 2025.

As of the second quarter of 2025, institutional investors and hedge funds collectively owned 42.85% of PC Connection's stock. Several institutional investors, including AlphaQuest LLC, Denali Advisors LLC, Moran Wealth Management LLC, CWM LLC, KLP Kapitalforvaltning AS, and State of Alaska Department of Revenue, increased their stakes during this period. Insider ownership stands at 56.12%.