PC Connection (NASDAQ:CNXN) Trading Up 7.6% on Better-Than-Expected Earnings

PC Connection, Inc. (NASDAQ:CNXN)’s stock price rose 7.6% during 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 traded hands during mid-day 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 EPS for the quarter, beating the consensus estimate of $0.86 by $0.05. PC Connection had a return on equity of 9.93% and a net margin of 2.91%.The business had revenue of $702.94 million during the quarter, compared to analysts’ expectations of $735.49 million.

PC Connection Increases Dividend

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

Key PC Connection News

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

• Positive Sentiment: Quarterly dividend raised 33.3% to $0.20/share (annualized yield ~1.2%); record date Feb 17, payable Mar 6 — signals management confidence and returns cash to shareholders.
• Positive Sentiment: EPS beat: reported $0.91 vs. consensus $0.86, topping estimates and showing EPS momentum versus prior-year $0.78. Zacks: Q4 EPS Beat
• Positive Sentiment: Management is targeting 200 basis points of market outperformance in 2026 by expanding AI-enabled solutions — a strategic growth thesis that could lift margins and address higher-value enterprise demand. Seeking Alpha: AI-enabled strategy
• Neutral Sentiment: Earnings call transcripts and analyst takeaways are available for deeper color on margin drivers, supply chain, and how AI investments will be funded — useful for judging sustainability of the beat. MSN: Q4 Earnings Call Transcript Seeking Alpha: Transcript
• Neutral Sentiment: Press release and snapshot of results provide the official figures and management commentary for modeling FY2026 estimates. Yahoo Finance: Press Release
• Negative Sentiment: Revenue missed expectations: $702.94M reported vs. consensus ~$735.5M — the top-line shortfall raises questions about order flow and could pressure near-term growth forecasts. MarketBeat: Revenue Miss & Details

Analysts Set New Price Targets

CNXN has been the subject of several recent analyst reports. Zacks Research upgraded shares of PC Connection from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Weiss Ratings reissued a “hold (c)” rating on shares of PC Connection in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock currently has an average rating of “Hold”.

Institutional Trading of PC Connection

Institutional investors and hedge funds have recently made changes to their positions in the stock. Prudential Financial Inc. raised its stake in PC Connection by 0.9% in the 2nd quarter. Prudential Financial Inc. now owns 31,255 shares of the company’s stock valued at $2,189,000 after purchasing an additional 264 shares during the last quarter. State of Alaska Department of Revenue boosted its stake in shares of PC Connection by 3.9% during the 2nd quarter. State of Alaska Department of Revenue now owns 7,113 shares of the company’s stock worth $467,000 after purchasing an additional 266 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of PC Connection by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,900 shares of the company’s stock worth $431,000 after buying an additional 312 shares in the last quarter. Franklin Resources Inc. grew its holdings in shares of PC Connection by 8.2% during the third quarter. Franklin Resources Inc. now owns 4,616 shares of the company’s stock worth $286,000 after buying an additional 348 shares in the last quarter. Finally, State of Wyoming raised its position in shares of PC Connection by 8.2% in the second quarter. State of Wyoming now owns 5,321 shares of the company’s stock valued at $350,000 after buying an additional 401 shares during the last quarter. 42.85% of the stock is currently owned by hedge funds and other institutional investors.

PC Connection Stock Up 9.1%

The firm’s 50 day moving average is $58.85 and its 200-day moving average is $60.65. The firm has a market cap of $1.66 billion, a PE ratio of 20.08, a P/E/G ratio of 1.58 and a beta of 0.83.

About PC Connection

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.