PC Connection (CNXN)
Market Price (9/24/2026): $88.67 | Market Cap: $2.2 BilSector: Information Technology | Industry: Technology Distributors
PC Connection (CNXN)
Market Price (9/24/2026): $88.67Market Cap: $2.2 BilSector: Information TechnologyIndustry: Technology Distributors
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.1% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -15% Low stock price volatilityVol 12M is 26% Megatrend and thematic driversMegatrends include Artificial Intelligence, Cybersecurity, and Cloud Computing. Themes include Data Centers & Infrastructure, Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% Weak multi-year price returns2Y Excs Rtn is -15%, 3Y Excs Rtn is -3.5% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.4% Key risksCNXN key risks include [1] its critical dependence on supplier relationships for favorable terms and product availability, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.1% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -15% |
| Low stock price volatilityVol 12M is 26% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cybersecurity, and Cloud Computing. Themes include Data Centers & Infrastructure, Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Weak multi-year price returns2Y Excs Rtn is -15%, 3Y Excs Rtn is -3.5% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.4% |
| Key risksCNXN key risks include [1] its critical dependence on supplier relationships for favorable terms and product availability, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 9/23/2026
PC Connection (CNXN) stock has gained about 30% since 5/31/2026 because of the following key factors:
1. PC Connection reported exceptionally strong fiscal Q2 2026 financial results, significantly exceeding analyst expectations. The company announced its Q2 2026 earnings on July 29, 2026, for the quarter ended June 30, 2026, with diluted earnings per share (EPS) of $1.31, surpassing the consensus estimate of $1.00 by $0.32. Quarterly revenue reached $854 million, also beating analyst estimates of $764.79 million. Furthermore, net sales increased by 12.4% year-over-year, net income surged by 33.8% to $33.2 million, and gross billings rose by 14% to $1.2 billion, demonstrating robust financial performance.
2. The company provided a positive future outlook, driven by increasing enterprise spending on AI infrastructure. Management highlighted that enterprise customers are transitioning from testing artificial intelligence solutions to broader deployment, which is expected to support further spending on IT infrastructure and services, including notebooks, servers, and networking. This forward-looking commentary, coupled with analyst forecasts projecting EPS growth of 6.94% in the next year and revenue growth of 4.4% annually over the next two years, contributed to investor confidence.
Show more
PC Connection (CNXN) stock has gained about 30% since 5/31/2026 because of the following key factors:
1. PC Connection reported exceptionally strong fiscal Q2 2026 financial results, significantly exceeding analyst expectations. The company announced its Q2 2026 earnings on July 29, 2026, for the quarter ended June 30, 2026, with diluted earnings per share (EPS) of $1.31, surpassing the consensus estimate of $1.00 by $0.32. Quarterly revenue reached $854 million, also beating analyst estimates of $764.79 million. Furthermore, net sales increased by 12.4% year-over-year, net income surged by 33.8% to $33.2 million, and gross billings rose by 14% to $1.2 billion, demonstrating robust financial performance.
2. The company provided a positive future outlook, driven by increasing enterprise spending on AI infrastructure. Management highlighted that enterprise customers are transitioning from testing artificial intelligence solutions to broader deployment, which is expected to support further spending on IT infrastructure and services, including notebooks, servers, and networking. This forward-looking commentary, coupled with analyst forecasts projecting EPS growth of 6.94% in the next year and revenue growth of 4.4% annually over the next two years, contributed to investor confidence.
Show more
Updated on 9/23/2026
PC Connection (CNXN) stock has gained about 30% since 5/31/2026 because of the following key factors:
1. PC Connection reported exceptionally strong fiscal Q2 2026 financial results, significantly exceeding analyst expectations. The company announced its Q2 2026 earnings on July 29, 2026, for the quarter ended June 30, 2026, with diluted earnings per share (EPS) of $1.31, surpassing the consensus estimate of $1.00 by $0.32. Quarterly revenue reached $854 million, also beating analyst estimates of $764.79 million. Furthermore, net sales increased by 12.4% year-over-year, net income surged by 33.8% to $33.2 million, and gross billings rose by 14% to $1.2 billion, demonstrating robust financial performance.
2. The company provided a positive future outlook, driven by increasing enterprise spending on AI infrastructure. Management highlighted that enterprise customers are transitioning from testing artificial intelligence solutions to broader deployment, which is expected to support further spending on IT infrastructure and services, including notebooks, servers, and networking. This forward-looking commentary, coupled with analyst forecasts projecting EPS growth of 6.94% in the next year and revenue growth of 4.4% annually over the next two years, contributed to investor confidence.
3. PC Connection secured a pivotal government contract with the award of the NASA SEWP VI. Through its subsidiary, GovConnection, the company was awarded a NASA SEWP VI Government-Wide Acquisition Contract, which significantly expands its potential for federal IT deals. This major contract win is a material positive event that broadens the company's market reach and potential for future revenue generation.
Show less
PC Connection (CNXN) stock has gained about 30% since 5/31/2026 because of the following key factors:
1. PC Connection reported exceptionally strong fiscal Q2 2026 financial results, significantly exceeding analyst expectations. The company announced its Q2 2026 earnings on July 29, 2026, for the quarter ended June 30, 2026, with diluted earnings per share (EPS) of $1.31, surpassing the consensus estimate of $1.00 by $0.32. Quarterly revenue reached $854 million, also beating analyst estimates of $764.79 million. Furthermore, net sales increased by 12.4% year-over-year, net income surged by 33.8% to $33.2 million, and gross billings rose by 14% to $1.2 billion, demonstrating robust financial performance.
2. The company provided a positive future outlook, driven by increasing enterprise spending on AI infrastructure. Management highlighted that enterprise customers are transitioning from testing artificial intelligence solutions to broader deployment, which is expected to support further spending on IT infrastructure and services, including notebooks, servers, and networking. This forward-looking commentary, coupled with analyst forecasts projecting EPS growth of 6.94% in the next year and revenue growth of 4.4% annually over the next two years, contributed to investor confidence.
3. PC Connection secured a pivotal government contract with the award of the NASA SEWP VI. Through its subsidiary, GovConnection, the company was awarded a NASA SEWP VI Government-Wide Acquisition Contract, which significantly expands its potential for federal IT deals. This major contract win is a material positive event that broadens the company's market reach and potential for future revenue generation.
Show less
Holding a concentrated position? Know your true downside before the momentum shifts.
Protect Your Wealth →
Stock Movement Drivers
Fundamental Drivers
The 27.6% change in CNXN stock from 5/31/2026 to 9/23/2026 was primarily driven by a 16.5% change in the company's P/E Multiple.| (LTM values as of) | 5312026 | 9232026 | Change |
|---|---|---|---|
| Stock Price ($) | 69.42 | 88.57 | 27.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,894 | 2,988 | 3.3% |
| Net Income Margin (%) | 3.0% | 3.2% | 6.1% |
| P/E Multiple | 20.0 | 23.3 | 16.5% |
| Shares Outstanding (Mil) | 25 | 25 | -0.1% |
| Cumulative Contribution | 27.6% |
Market Drivers
5/31/2026 to 9/23/2026| Return | Correlation | |
|---|---|---|
| CNXN | 27.6% | |
| Market (SPY) | 1.8% | 7.6% |
| Sector (XLK) | 2.4% | -2.3% |
Fundamental Drivers
The 46.1% change in CNXN stock from 2/28/2026 to 9/23/2026 was primarily driven by a 27.7% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 9232026 | Change |
|---|---|---|---|
| Stock Price ($) | 60.62 | 88.57 | 46.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,873 | 2,988 | 4.0% |
| Net Income Margin (%) | 2.9% | 3.2% | 10.1% |
| P/E Multiple | 18.3 | 23.3 | 27.7% |
| Shares Outstanding (Mil) | 25 | 25 | 0.0% |
| Cumulative Contribution | 46.1% |
Market Drivers
2/28/2026 to 9/23/2026| Return | Correlation | |
|---|---|---|
| CNXN | 46.1% | |
| Market (SPY) | 12.5% | 24.2% |
| Sector (XLK) | 41.1% | 16.5% |
Fundamental Drivers
The 39.5% change in CNXN stock from 8/31/2025 to 9/23/2026 was primarily driven by a 24.4% change in the company's P/E Multiple.| (LTM values as of) | 8312025 | 9232026 | Change |
|---|---|---|---|
| Stock Price ($) | 63.50 | 88.57 | 39.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,894 | 2,988 | 3.2% |
| Net Income Margin (%) | 3.0% | 3.2% | 7.9% |
| P/E Multiple | 18.7 | 23.3 | 24.4% |
| Shares Outstanding (Mil) | 25 | 25 | 0.7% |
| Cumulative Contribution | 39.5% |
Market Drivers
8/31/2025 to 9/23/2026| Return | Correlation | |
|---|---|---|
| CNXN | 39.5% | |
| Market (SPY) | 20.3% | 28.9% |
| Sector (XLK) | 49.6% | 18.9% |
Fundamental Drivers
The 71.0% change in CNXN stock from 8/31/2023 to 9/23/2026 was primarily driven by a 30.2% change in the company's P/E Multiple.| (LTM values as of) | 8312023 | 9232026 | Change |
|---|---|---|---|
| Stock Price ($) | 51.79 | 88.57 | 71.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,969 | 2,988 | 0.6% |
| Net Income Margin (%) | 2.6% | 3.2% | 25.4% |
| P/E Multiple | 17.9 | 23.3 | 30.2% |
| Shares Outstanding (Mil) | 26 | 25 | 4.1% |
| Cumulative Contribution | 71.0% |
Market Drivers
8/31/2023 to 9/23/2026| Return | Correlation | |
|---|---|---|
| CNXN | 71.0% | |
| Market (SPY) | 77.0% | 41.6% |
| Sector (XLK) | 126.9% | 33.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CNXN Return | -6% | 9% | 44% | 4% | -16% | 52% | 96% |
| Peers Return | 43% | -16% | 59% | 4% | -1% | 107% | 308% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 107% |
Monthly Win Rates [3] | |||||||
| CNXN Win Rate | 50% | 58% | 83% | 50% | 33% | 78% | |
| Peers Win Rate | 72% | 43% | 70% | 50% | 45% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| CNXN Max Drawdown | -22% | -21% | -25% | -17% | -24% | -17% | |
| Peers Max Drawdown | -17% | -31% | -21% | -33% | -40% | -24% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: CDW, NSIT, PLUS, SNX, DELL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/23/2026 (YTD)
How Low Can It Go
| Event | CNXN | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -26.4% | -33.7% |
| % Gain to Breakeven | 35.9% | 50.9% |
| Time to Breakeven | 48 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.5% | -19.2% |
| % Gain to Breakeven | 41.8% | 23.8% |
| Time to Breakeven | 112 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -12.7% | -3.7% |
| % Gain to Breakeven | 14.5% | 3.9% |
| Time to Breakeven | 9 days | 6 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -12.5% | -6.8% |
| % Gain to Breakeven | 14.3% | 7.3% |
| Time to Breakeven | 66 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -13.5% | -17.9% |
| % Gain to Breakeven | 15.6% | 21.8% |
| Time to Breakeven | 7 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -17.5% | -15.4% |
| % Gain to Breakeven | 21.2% | 18.2% |
| Time to Breakeven | 27 days | 125 days |
In The Past
PC Connection's stock fell -9.6% during the 2025 US Tariff Shock. Such a loss loss requires a 10.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | CNXN | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -26.4% | -33.7% |
| % Gain to Breakeven | 35.9% | 50.9% |
| Time to Breakeven | 48 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.5% | -19.2% |
| % Gain to Breakeven | 41.8% | 23.8% |
| Time to Breakeven | 112 days | 105 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -78.4% | -53.4% |
| % Gain to Breakeven | 363.7% | 114.4% |
| Time to Breakeven | 1058 days | 1085 days |
In The Past
PC Connection's stock fell -9.6% during the 2025 US Tariff Shock. Such a loss loss requires a 10.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About PC Connection (CNXN)
PC Connection, Inc. (CNXN) operates as an information technology (IT) solutions provider, assisting a wide array of organizations with their technology needs. The company serves as a comprehensive partner for businesses and institutions looking to acquire, design, configure, and implement various IT solutions to support their operations and infrastructure.
CNXN offers a diverse portfolio of IT products, including computer systems, data center solutions, software, peripheral equipment, and networking and communications hardware. Beyond product sales, the company provides essential services such as the design, configuration, and implementation of these IT solutions, ensuring clients receive integrated and functional technology environments tailored to their specific requirements.
The company organizes its operations across three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions, reflecting its varied customer base. Its primary customers include small to medium-sized businesses (SMBs), large corporate accounts, as well as government and educational institutions. CNXN utilizes multiple channels to reach these markets, including its dedicated websites, outbound telemarketing, field sales teams, and targeted marketing campaigns.
AI Analysis | Feedback
Here are 1-2 brief analogies for PC Connection (CNXN):
- It's like CDW, providing a wide range of IT products and services to businesses and institutions.
- Think of it as the Amazon Business of comprehensive IT solutions, serving companies, schools, and government.
AI Analysis | Feedback
- IT Products: PC Connection offers a wide array of information technology products for various business and institutional needs.
- Computer Systems: This category includes desktops, laptops, servers, and other computing devices.
- Data Center Solutions: Products and infrastructure designed for efficient data storage, management, and processing.
- Software: Various types of software, encompassing operating systems, applications, and security programs.
- Peripheral Equipment: Accessories such as monitors, keyboards, mice, printers, and other external devices.
- Networking Communications: Devices and solutions for building and maintaining robust network infrastructures.
- IT Services: The company provides specialized services to support the full lifecycle of information technology solutions.
- IT Solution Design: Expert assistance in planning and architecting custom IT infrastructures and systems.
- IT Solution Configuration: Customizing and setting up IT hardware and software to meet specific client requirements.
- IT Solution Implementation: Deployment and installation of IT systems and solutions for operational readiness.
AI Analysis | Feedback
PC Connection (CNXN) Major Customers
PC Connection (CNXN) primarily sells to other companies and organizations rather than directly to individuals. Based on the provided description, the company serves the following major categories of customers:
- Small to medium-sized businesses (SMBs), including small office/home office customers.
- Government and educational institutions.
- Medium-to-large corporate accounts.
The provided information does not list specific named customer companies.
AI Analysis | Feedback
- Hewlett Packard Enterprise Company (HPE)
- HP Inc. (HPQ)
- Dell Technologies Inc. (DELL)
- Apple Inc. (AAPL)
- Cisco Systems, Inc. (CSCO)
- Lenovo Group Ltd. (LNVGY)
- Microsoft Corporation (MSFT)
- Samsung Electronics Co., Ltd. (005930.KS)
- Intel Corporation (INTC)
- Sophos Ltd.
- VMware Inc. (Parent company: Broadcom Inc. - AVGO)
- Adobe Inc. (ADBE)
- Google LLC (Parent company: Alphabet Inc. - GOOGL)
AI Analysis | Feedback
Timothy McGrath, President and Chief Executive Officer
Timothy McGrath was promoted to Chief Executive Officer of PC Connection, Inc. in August 2011, succeeding co-founder Patricia Gallup. He joined the company in 2005 and served as President and Chief Operating Officer from April 2010. Prior to his time at PC Connection, Mr. McGrath was the Executive Vice President of Insight North America at Insight Enterprises, Inc. Earlier in his career, he was President of Comark, which was acquired by Insight Enterprises, Inc. in 2002. He began his career at Hewlett Packard as an area sales manager. Mr. McGrath holds a Bachelor of Science degree in Business Administration from Southern New Hampshire University and an MBA from Babson College.
Thomas C. Baker, Senior Vice President, Chief Financial Officer, and Treasurer
Thomas C. Baker joined Connection (PC Connection, Inc.) as Senior Vice President, Chief Financial Officer, and Treasurer on March 1, 2019. Before this role, he served as Corporate Vice President and Chief Financial Officer for the New Markets and Service Group at Applied Materials, Inc. starting in 2013. From 2006 to 2013, Mr. Baker was the Vice President of finance for Varian Semiconductor Equipment Associates and successfully led the finance integration following its acquisition by Applied Materials in 2011. He began his career as a public accountant with Price Waterhouse after earning a Bachelor of Science degree in accounting from Babson College.
Patricia Gallup, Co-Founder, Chair of the Board and Chief Administrative Officer
Patricia Gallup co-founded PC Connection, Inc. in 1982 with David Hall. She served as the company's CEO until August 2011 and continues to serve as the Executive Chairman of the Board of Directors and Chief Administrative Officer. Ms. Gallup has been recognized on Fortune Magazine's list of top young entrepreneurs and Working Woman's list of the top 50 women business owners in the United States. She is a 1979 graduate of the University of Connecticut and received its distinguished alumni award in 1994.
Jamal Khan, Chief Growth and Innovation Officer
Brian Hicks, Senior Vice President of Product Management and Operations
AI Analysis | Feedback
The public company PC Connection (symbol: CNXN) faces several key risks to its business operations:
- Heavy Reliance on Hardware Sales and Margin Pressure: PC Connection's revenue heavily depends on hardware sales, such as personal computers and peripherals, which are lower-margin, cyclical products. This concentration leads to inherent revenue instability and persistent pressure on profit margins, despite efforts to expand higher-margin services.
- Intense Competition: The company operates within a highly competitive IT solutions market. It faces significant competition from larger, globally diversified IT distributors and national solution providers, as well as direct sales initiatives from manufacturers. This competitive landscape can lead to pricing pressures, logistical disadvantages, and challenges in maintaining or growing market share.
- Economic Downturns and Fluctuations in IT Spending: PC Connection's business is susceptible to macroeconomic pressures and reductions in IT spending by its customer base, which includes small to medium-sized businesses, government and educational institutions, and corporate accounts. A slowdown in IT spending, as indicated by surveys showing some technology leaders planning to reduce their IT expenditures, can directly impact the company's sales and revenue growth across its segments.
AI Analysis | Feedback
The accelerated shift by businesses and public sector entities to cloud computing (Infrastructure as a Service, Platform as a Service, and Software as a Service). This trend significantly reduces the demand for traditional on-premise computer systems, data center hardware, perpetual software licenses, and physical networking equipment, which are core components of PC Connection's product offerings. As organizations move towards subscription-based cloud services, the traditional reseller model for physical IT assets faces erosion, requiring a fundamental pivot in product portfolio, service offerings, and sales strategy.
AI Analysis | Feedback
For PC Connection (CNXN), the addressable markets for its main products and services, primarily within the U.S. and North America, are substantial across various segments.
IT Solutions and Services
- The U.S. IT services market was valued at approximately USD 405.7 billion in 2023 and is projected to grow to USD 695.6 billion by 2030, with a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030. Other estimates place the U.S. IT services market at USD 441.7 billion in 2024, anticipated to reach over USD 1 trillion by 2035 with a CAGR of 7.81% from 2025 to 2035.
- Overall U.S. IT spending is a broader market, valued at USD 1.47 trillion in 2025 and projected to reach USD 2.03 trillion by 2034, growing at a CAGR of 3.65% from 2026-2034.
Software
- The U.S. software market generated approximately USD 237.43 billion in revenue in 2024 and is expected to reach USD 409.66 billion by 2030, exhibiting a CAGR of 9.4% from 2025 to 2030. Other forecasts indicate the U.S. software market could be as large as USD 472.21 billion in 2024, potentially reaching USD 1.38 trillion by 2032 with a CAGR of 14.32%.
Data Center Solutions
- The global data center solutions market was valued at USD 448.95 billion in 2024 and is projected to reach USD 1,105.28 billion by 2030, demonstrating a CAGR of 19.7% from 2025–2030. North America is expected to hold the largest market share in the data center power market. Specifically, North America accounts for approximately 45% of the global data center solutions market.
- The U.S. AI data center market, encompassing hardware and services, was valued at USD 35.07 billion in 2025 and is expected to reach USD 167.04 billion by 2033, with a CAGR of 21.7% from 2026 to 2033.
Networking Communications
- The U.S. network communication equipment market was valued at USD 123.11 billion in 2024 and is anticipated to grow to USD 168.09 billion by 2033, with a CAGR of 3.42% from 2025 to 2033. Another report estimates the U.S. network equipment market at USD 35.07 billion in 2023, rising to USD 42.63 billion by 2030 with a CAGR of 2.8% from 2024-2030.
- The North America communication networks market was valued at USD 1.08 billion in 2024 and is expected to reach USD 1.59 billion by 2032, growing at a CAGR of 4.6%.
Computer Systems and Peripheral Equipment
- The North America computer peripherals market was valued at USD 164.42 billion in 2024 and is projected to expand at a CAGR of 8.8% from 2024 to 2031. Within this, the U.S. held a significant share of USD 129.73 billion in 2024.
- The global computer peripherals market is estimated at USD 545 billion in 2026 and is expected to reach USD 1.38 trillion by 2033, with North America anticipating the fastest growth.
Customer Segments (U.S. IT Spending)
- **Small to Medium-sized Businesses (SMBs):** The U.S. SMB IT spending market is estimated at USD 225.4 billion in 2024. Globally, SMB IT spending is projected to reach USD 1.1 trillion by 2030.
- **Government:** The total technology spending for the entire U.S. government sector, including staff costs, is projected to reach USD 343 billion in 2025, increasing to USD 357 billion in 2026. Specifically, federal civilian IT budgets are projected to be USD 76.8 billion in fiscal 2025.
- **Educational Institutions:** U.S. K-12 education technology spending reached USD 30 billion in 2024 and is projected to nearly double by 2033. The overall U.S. EdTech market is valued at USD 42 billion.
AI Analysis | Feedback
Here are 3-5 expected drivers of future revenue growth for PC Connection (CNXN) over the next 2-3 years:
- Focus on High-Growth Technology Areas: PC Connection is actively winning business and investing in high-growth areas such as AI infrastructure, data center modernization, and edge computing. These segments are anticipated to drive future sales.
- Shift Towards Higher-Margin Solutions and Services: The company is strategically emphasizing a shift towards higher-value, recurring revenue streams, including cloud software, cybersecurity, and various services. This focus on higher-margin offerings, rather than commodity hardware, is expected to enhance profitability and contribute to revenue growth.
- Expansion of Service Offerings and Customer Relationships: PC Connection aims to expand its service offerings and deepen relationships with customers by leveraging its comprehensive portfolio of managed and professional services. This strategy is designed to attract new clients and improve customer retention across its diverse segments.
- Growth in Key Vertical Markets: Strong performance in specific vertical markets, including retail, financial services, and manufacturing, has been identified as a driver, with significant year-over-year increases in net sales and gross profit in these sectors. The healthcare sector is also noted for strong growth.
- Outperforming the Overall U.S. IT Market: Management projects that PC Connection will outperform the broader U.S. IT market by 200 basis points in 2026, building on the estimated 4% growth of the market itself. This indicates an expectation of gaining market share.
AI Analysis | Feedback
Capital Allocation Decisions (Last 3-5 Years) for PC Connection (CNXN)
Share Repurchases
- PC Connection repurchased over a million shares for a total cost of $65.4 million year-to-date through Q3 2025.
- In Q1 2025, the company repurchased 697,069 shares for an aggregate purchase price of $44.8 million.
- The Board of Directors approved a $50.0 million increase to the existing share repurchase program in April 2025, bringing the total authorized amount to $170 million, with $50.5 million remaining available.
Share Issuance
- PC Connection has not reported significant share issuances over the last 3-5 years, with financial statements often showing "—" or "0.00" for issuance of capital stock.
- The number of shares outstanding decreased by 3.56% from 2024 to 2025, from 26.28 million to 25.35 million shares.
Capital Expenditures
- Capital expenditures for the fiscal year 2025 amounted to $7.4 million.
- Quarterly capital expenditures remained modest, with approximately $2.2 million in Q4 2025.
- The primary focus of capital expenditures includes investments in IT infrastructure to operate more efficiently, enhance customer functionality, and support the IT solutions business by adding skilled service engineers.
Peer Outperformance in Technology Distributors
CNXN has outperformed 63% of its 8 Technology Distributors peers over 5Y. Among the peers that beat it are AVT and SNX. Technology Distributors ranks 3rd of 12 industries in Information Technology by median 5Y return. That makes it one of the strongest corners of the sector.
Share of Technology Distributors constituents that CNXN has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
63%
of 8 industry peers · 43.5% return
3Y
38%
of 8 industry peers · 68.7% return
5Y
63%
of 8 industry peers · 107.5% return
Technology Distributors peers with revenue growth within 4pp of CNXN's that beat it on at least 2 of 3 windows, and by at least 20pp over 5Y. Growth is matched by construction, so the gap is largely a re-rating gap. The multiple column is the context for it.
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| CNXN | PC Connection | 0.4% | 23.3x | 43.5% | 68.7% | 107.5% | — |
| AVT | Avnet | 2.5% | 24.9x | 94.8% | 127.9% | 204.4% | +97pp |
| SNX | TD Synnex | 2.0% | 23.3x | 91.5% | 193.3% | 175.5% | +68pp |
Price returns, excluding dividends. P/E shown for context only and not used for matching.
Median price return by industry across the Information Technology sector, ranked by 5Y. Technology Distributors is CNXN's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 62.1% | 192.4% | 276.6% | TTMI 904% · FLEX 703% · SANM 465% |
| Semiconductor Materials & Equipment | 27 | 94.9% | 99.9% | 105.2% | AXTI 749% · AEHR 516% · KLAC 434% |
| Technology Distributors ← | 9 | 35.0% | 78.8% | 99.6% | CLMB 399% · AVT 204% · SNX 176% |
| Communications Equipment | 36 | 8.8% | 80.9% | 70.6% | AAOI 1296% · FEIM 1001% · LITE 982% |
| Electronic Components | 26 | 37.0% | 75.5% | 65.3% | CLS 3725% · BELFA 1394% · COHR 389% |
| Semiconductors | 55 | 26.7% | 39.4% | 40.7% | POET 1815% · MU 1384% · NVDA 926% |
| Technology Hardware, Storage & Peripherals | 20 | 24.9% | 95.5% | 36.4% | STX 1135% · DELL 1057% · SMCI 1011% |
| Internet Services & Infrastructure | 6 | 3.8% | 51.7% | 31.2% | DOCN 71% · VRSN 37% · GDDY 36% |
| Electronic Equipment & Instruments | 26 | -15.3% | 12.1% | -11.3% | PI 189% · OSIS 116% · KEYS 98% |
| IT Consulting & Other Services | 30 | -27.9% | -16.5% | -39.3% | CHRN 539637% · APLD 1169% · TSSI 744% |
| Application Software | 125 | -30.5% | -13.8% | -46.7% | VIDA 153233% · INLX 5065% · PLTR 572% |
| Systems Software | 74 | -20.1% | 8.9% | -58.0% | QNC 666% · ZETA 397% · PANW 381% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 152.20 |
| Mkt Cap | 11.7 |
| Rev LTM | 16,040 |
| Op Inc LTM | 1,020 |
| FCF LTM | 628 |
| FCF 3Y Avg | 696 |
| CFO LTM | 702 |
| CFO 3Y Avg | 792 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.9% |
| Rev Chg 3Y Avg | 1.9% |
| Rev Chg Q | 13.6% |
| QoQ Delta Rev Chg LTM | 3.5% |
| Op Inc Chg LTM | 28.6% |
| Op Inc Chg 3Y Avg | 6.1% |
| Op Mgn LTM | 6.0% |
| Op Mgn 3Y Avg | 5.4% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 3.3% |
| CFO/Rev 3Y Avg | 5.5% |
| FCF/Rev LTM | 2.9% |
| FCF/Rev 3Y Avg | 4.8% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Enterprise Solutions | 1,282 | 1,181 | 1,201 | 1,324 | 1,249 |
| Business Solutions | 1,082 | 1,049 | 1,076 | 1,245 | 1,098 |
| Public Sector Solutions | 508 | 572 | 574 | 555 | 545 |
| Total | 2,873 | 2,802 | 2,851 | 3,125 | 2,893 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Business Solutions | 91 | 77 | 76 | 79 | 44 |
| Enterprise Solutions | 35 | 34 | 39 | 53 | 75 |
| Public Sector Solutions | -10 | 2 | 2 | 1 | -5 |
| Unallocated Headquarters/Other expenses | -17 | -16 | -14 | -14 | |
| Headquarters/Other assets | -17 | ||||
| Total | 99 | 97 | 103 | 121 | 97 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Enterprise Solutions | 773 | 737 | 705 | 660 | 646 |
| Business Solutions | 653 | 564 | 503 | 446 | 402 |
| Public Sector Solutions | 96 | 115 | 79 | 85 | 85 |
| Headquarters/Other assets | -171 | -117 | -98 | -91 | -49 |
| Total | 1,351 | 1,299 | 1,188 | 1,100 | 1,083 |
Price Behavior
Price Behavior
| Market Price | $88.57 | |
| Market Cap ($ Bil) | 2.2 | |
| First Trading Date | 03/03/1998 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $82.08 | $67.93 |
| DMA Trend | up | up |
| Distance from DMA | 7.9% | 30.4% |
| 3M | 1YR | |
| Volatility | 23.6% | 25.6% |
| Downside Capture | -6.84 | 41.92 |
| Upside Capture | 108.15 | 76.15 |
| Correlation (SPY) | 24.4% | 29.1% |
CNXN Betas & Captures as of 8/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.11 | 0.48 | 0.11 | 0.44 | 0.59 | 0.75 |
| Up Beta | 1.09 | 0.57 | -0.40 | 0.18 | 0.65 | 0.74 |
| Down Beta | -0.89 | -0.72 | -0.51 | 0.04 | 0.37 | 0.60 |
| Up Capture | 74% | 98% | 83% | 86% | 65% | 59% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 11 | 25 | 40 | 77 | 135 | 377 |
| Down Capture | 242% | 46% | 21% | 46% | 67% | 95% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 10 | 17 | 24 | 50 | 116 | 372 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CNXN | |
|---|---|---|---|---|
| CNXN | 42.3% | 25.5% | 1.33 | - |
| Sector ETF (XLK) | 38.9% | 26.5% | 1.21 | 19.3% |
| Equity (SPY) | 16.2% | 13.0% | 0.88 | 28.4% |
| Gold (GLD) | 13.9% | 29.3% | 0.44 | -10.7% |
| Commodities (DBC) | 46.6% | 20.7% | 1.75 | -23.5% |
| Real Estate (VNQ) | 4.5% | 13.7% | 0.08 | 22.4% |
| Bitcoin (BTCUSD) | -23.2% | 44.8% | -0.46 | 4.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CNXN | |
|---|---|---|---|---|
| CNXN | 15.7% | 29.1% | 0.52 | - |
| Sector ETF (XLK) | 20.8% | 26.0% | 0.71 | 37.3% |
| Equity (SPY) | 12.9% | 17.2% | 0.57 | 42.7% |
| Gold (GLD) | 18.6% | 18.8% | 0.80 | -1.9% |
| Commodities (DBC) | 10.5% | 19.5% | 0.41 | 2.2% |
| Real Estate (VNQ) | 0.8% | 18.9% | -0.06 | 34.4% |
| Bitcoin (BTCUSD) | 12.5% | 52.6% | 0.41 | 15.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CNXN | |
|---|---|---|---|---|
| CNXN | 14.9% | 34.7% | 0.49 | - |
| Sector ETF (XLK) | 25.0% | 25.0% | 0.90 | 37.8% |
| Equity (SPY) | 15.5% | 17.9% | 0.73 | 41.8% |
| Gold (GLD) | 12.1% | 16.4% | 0.60 | -0.8% |
| Commodities (DBC) | 8.5% | 18.1% | 0.38 | 9.7% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 32.1% |
| Bitcoin (BTCUSD) | 64.2% | 66.2% | 1.04 | 11.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/31/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/29/2026 | -0.6% | 3.6% | -2.6% |
| 4/29/2026 | 0.6% | 2.2% | 10.1% |
| 2/4/2026 | 9.1% | 8.3% | 1.2% |
| 10/29/2025 | -1.5% | -3.7% | -4.2% |
| 7/30/2025 | -3.8% | -5.6% | 0.4% |
| 4/30/2025 | 7.0% | 9.0% | 5.6% |
| 2/5/2025 | -10.8% | -10.5% | -11.0% |
| 10/30/2024 | -5.5% | 11.8% | 7.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 10 | 14 | 14 |
| # Negative | 15 | 11 | 11 |
| Median Positive | 5.7% | 6.2% | 6.5% |
| Median Negative | -3.5% | -5.6% | -6.4% |
| Max Positive | 15.9% | 12.7% | 19.0% |
| Max Negative | -15.0% | -18.5% | -17.4% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/29/2026 | -0.6% | 3.6% | -2.6% |
| 4/29/2026 | 0.6% | 2.2% | 10.1% |
| 2/4/2026 | 9.1% | 8.3% | 1.2% |
| 10/29/2025 | -1.5% | -3.7% | -4.2% |
| 7/30/2025 | -3.8% | -5.6% | 0.4% |
| 4/30/2025 | 7.0% | 9.0% | 5.6% |
| 2/5/2025 | -10.8% | -10.5% | -11.0% |
| 10/30/2024 | -5.5% | 11.8% | 7.9% |
| 7/31/2024 | 4.9% | -3.8% | 0.8% |
| 5/1/2024 | -4.3% | 2.9% | 9.3% |
| 2/14/2024 | 6.4% | 5.0% | -1.5% |
| 11/1/2023 | 5.0% | 11.2% | 11.7% |
| 8/2/2023 | 4.9% | 6.6% | 7.3% |
| 5/4/2023 | -2.6% | 5.7% | 14.5% |
| 2/9/2023 | -14.0% | -9.9% | -13.3% |
| 11/3/2022 | -7.1% | -1.8% | 4.4% |
| 8/4/2022 | 4.7% | 6.8% | 4.4% |
| 5/5/2022 | -2.1% | -7.2% | -6.8% |
| 2/7/2022 | 15.9% | 12.7% | 19.0% |
| 11/4/2021 | 7.2% | 4.0% | -0.8% |
| 8/5/2021 | -1.6% | 3.1% | 2.8% |
| 5/6/2021 | -3.5% | -4.7% | -2.2% |
| 2/24/2021 | -15.0% | -18.5% | -17.4% |
| 11/9/2020 | -1.4% | -10.4% | -12.5% |
| 8/10/2020 | -3.1% | -4.1% | -6.4% |
| SUMMARY STATS | |||
| # Positive | 10 | 14 | 14 |
| # Negative | 15 | 11 | 11 |
| Median Positive | 5.7% | 6.2% | 6.5% |
| Median Negative | -3.5% | -5.6% | -6.4% |
| Max Positive | 15.9% | 12.7% | 19.0% |
| Max Negative | -15.0% | -18.5% | -17.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/29/2026 | 10-Q |
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/24/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/24/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 03/07/2024 | 10-K |
| 09/30/2023 | 11/01/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 03/06/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/29/2026 | 10-Q |
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/24/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/24/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 03/07/2024 | 10-K |
| 09/30/2023 | 11/01/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 03/06/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 03/14/2022 | 10-K |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/05/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 03/16/2021 | 10-K |
| 09/30/2020 | 11/09/2020 | 10-Q |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 04/30/2020 | 10-Q |
| 12/31/2019 | 02/06/2020 | 10-K |
| 09/30/2019 | 10/30/2019 | 10-Q |
Insider Activity
Updated 9/16/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9162026 | 85.18 | 7,142 | 608,352 | 590,103,272 | Form |
| 2 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9162026 | 85.42 | 7,142 | 610,092 | 592,400,839 | Form |
| 3 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9032026 | 80.58 | 7,142 | 575,505 | 559,392,508 | Form |
| 4 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9032026 | 78.96 | 7,142 | 563,934 | 548,709,302 | Form |
| 5 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 8192026 | 78.57 | 7,142 | 561,161 | 546,571,839 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9162026 | 85.18 | 7,142 | 608,352 | 590,103,272 | Form |
| 2 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9162026 | 85.42 | 7,142 | 610,092 | 592,400,839 | Form |
| 3 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9032026 | 80.58 | 7,142 | 575,505 | 559,392,508 | Form |
| 4 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 9032026 | 78.96 | 7,142 | 563,934 | 548,709,302 | Form |
| 5 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 8192026 | 78.57 | 7,142 | 561,161 | 546,571,839 | Form |
| 6 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 8192026 | 78.64 | 7,142 | 561,660 | 547,619,721 | Form |
| 7 | McGrath, Timothy J | President & CEO | Direct | Sell | 8052026 | 86.30 | 14,321 | 1,235,944 | 20,742,297 | Form |
| 8 | McGrath, Timothy J | President & CEO | Direct | Sell | 8052026 | 85.71 | 35,679 | 3,058,224 | 21,828,514 | Form |
| 9 | Baker, Thomas C | Sr. VP, CFO & Treasurer | Direct | Sell | 8032026 | 83.19 | 20,000 | 1,663,836 | 3,002,559 | Form |
| 10 | Duckett, Barbara | Direct | Sell | 8032026 | 83.86 | 2,000 | 167,720 | 1,362,893 | Form | |
| 11 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 7242026 | 80.57 | 7,142 | 575,431 | 562,773,098 | Form |
| 12 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 7242026 | 80.05 | 7,142 | 571,691 | 559,686,726 | Form |
| 13 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 7082026 | 74.11 | 7,142 | 529,294 | 518,709,156 | Form |
| 14 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 7082026 | 72.86 | 7,142 | 520,333 | 510,447,714 | Form |
| 15 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 6252026 | 70.08 | 7,142 | 500,497 | 491,489,739 | Form |
| 16 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 6252026 | 69.73 | 7,142 | 497,994 | 489,529,004 | Form |
| 17 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 6102026 | 71.91 | 7,384 | 531,020 | 505,400,426 | Form |
| 18 | Gallup, Patricia | Chairman & Chief Admin Officer | Trust | Sell | 6102026 | 72.09 | 6,924 | 499,179 | 507,191,287 | Form |
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Technology Distributors Resources |
| CRN |
| Channel Futures |
| ChannelE2E |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.
Core Cache Last Updated: 9/23/2026