PC Connection (NASDAQ:CNXN) Trading Up 7.6% After Earnings Beat

PC Connection, Inc. (NASDAQ:CNXN)’s stock price traded up 7.6% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $64.97 and last traded at $64.73. 60,106 shares were traded during mid-day trading, a decline of 20% from the average session 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 the consensus estimate of $0.86 by $0.05. The firm had revenue of $702.94 million during the quarter, compared to the consensus estimate of $735.49 million. PC Connection had a return on equity of 9.61% and a net margin of 2.91%.

PC Connection Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Tuesday, February 17th will be issued a $0.20 dividend. The ex-dividend date is Tuesday, February 17th. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. This is a boost from PC Connection’s previous quarterly dividend of $0.15. PC Connection’s dividend payout ratio (DPR) is currently 18.58%.

Key Stories Impacting PC Connection

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

• Positive Sentiment: Company raised its quarterly dividend 33.3% to $0.20/share (annualized yield ~1.2%), signaling stronger cash return to shareholders and supporting income-focused buyer interest.
• Positive Sentiment: Earnings per share beat street estimates — $0.91 actual vs. $0.86 consensus — showing improved profitability versus a year ago. Zacks: Q4 Earnings Surpass Estimates
• Positive Sentiment: Management set a goal to outperform the market by ~200 basis points in 2026 and is expanding AI-enabled solutions — a strategic growth driver that investors may view as supportive of long-term revenue and margin expansion. Connection targets 200 bps outperformance in 2026
• Neutral Sentiment: Full quarter details and the conference call transcript are available for investors who want management color on margins, backlog and FY guidance. Q4 2025 Earnings Call Transcript Q4 Earnings Snapshot Press Release
• Negative Sentiment: Revenue missed consensus materially — $702.9M reported vs. ~$735.5M expected — which could temper upside if the top-line shortfall reflects weaker demand in key categories. Yahoo Finance: Q4 and FY 2025 Results

Analyst Ratings Changes

A number of research firms have recently commented on CNXN. Zacks Research raised shares of PC Connection from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of PC Connection in a report on Monday, December 29th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of “Hold”.

Hedge Funds Weigh In On PC Connection

Several large investors have recently modified their holdings of CNXN. AlphaQuest LLC raised its stake in PC Connection by 134.1% during the third quarter. AlphaQuest LLC now owns 25,297 shares of the company’s stock valued at $1,568,000 after buying an additional 14,492 shares in the last quarter. Denali Advisors LLC increased its holdings in shares of PC Connection by 25.7% in the 2nd quarter. Denali Advisors LLC now owns 66,631 shares of the company’s stock valued at $4,383,000 after acquiring an additional 13,608 shares during the last quarter. Brown Advisory Inc. raised its position in shares of PC Connection by 65.3% during the 2nd quarter. Brown Advisory Inc. now owns 220,821 shares of the company’s stock valued at $14,526,000 after acquiring an additional 87,224 shares in the last quarter. Magnetar Financial LLC lifted its stake in PC Connection by 113.4% during the second quarter. Magnetar Financial LLC now owns 17,193 shares of the company’s stock worth $1,131,000 after purchasing an additional 9,137 shares during the last quarter. Finally, State of Alaska Department of Revenue boosted its holdings in PC Connection by 3.9% in the second 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 period. Institutional investors own 42.85% of the company’s stock.

PC Connection Stock Up 7.8%

The stock has a market cap of $1.64 billion, a P/E ratio of 20.07, a price-to-earnings-growth ratio of 1.55 and a beta of 0.83. The firm’s 50 day simple moving average is $58.71 and its two-hundred day simple moving average is $60.62.

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.