| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 22.7x | 17.8x | Around median | |
Growth | 19 | 3.2% | 7.1% | Bottom tier | |
Quality | 39 | 8.9% | 4.5% | Bottom tier | |
Safety | 86 | — | 2.6x | Top tier | |
Capital Return | 23 | 0.82% | 2.12% | Bottom tier | |
Momentum | 95 | 31.0% | 2.9% | Top tier | |
Sentiment | 21 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PC Connection, Inc. (CNXN) operates as an integrated provider of information technology solutions to corporate, enterprise, and public-sector customers. The company brings infrastructure, cloud computing, software, cybersecurity, artificial intelligence, and services together in a single experience, and uses the TSX technical solutions organization, supported by the Helix Center for Applied AI and Robotics, to help customers evaluate, deploy, and manage technologies. Revenue is generated through three segments: Enterprise Solutions, Business Solutions, and Public Sector Solutions, benefiting from sales of endpoint devices, servers, storage, networking, software, and services.
In the second quarter of fiscal year 2026, the company reported record revenue of $854.0 million, up 12.4% year over year, while gross profit rose 14.3% to a record $157.5 million. Gross margin expanded by 30 basis points to 18.4%, and operating income jumped 39.2% to $43.0 million, with its margin improving from 4.1% to a record 5.0%. Net income increased 33.8% to $33.2 million, while diluted earnings per share rose 35.1% to $1.31.
Enterprise Solutions was the largest contributor to revenue in the second quarter of fiscal year 2026, generating $369.6 million and growing 13.4%, followed by Business Solutions with record revenue of $343.9 million and growth of 17.3%, then Public Sector Solutions with $140.5 million and no material year-over-year change. The gross margins of these segments were 14.9%, 23.0%, and 15.5%, respectively. For the twelve months ended in 2026, revenue totaled $3.0 billion, gross profit was $564.5 million, net income was $95.8 million, and earnings per share were approximately $3.78.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates CNXN shares as a “Buy,” but the available information does not include a consensus price target or a range of analyst targets that can be used for comparison. The stock’s 52-week range extends from $54.97 to $88.31, a wide range that should be weighed against 35.1% growth in diluted earnings per share in the second quarter of fiscal year 2026, as well as the risks of slower sequential growth, pulled-forward demand, and working capital pressure.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue reached $854.0 million, up 12.4% year over year, driven by 19.5% growth in sales of notebooks, mobility devices, and desktops. Endpoint device units increased 3%, while higher average selling prices helped expand revenue growth, and software grew 15% and networking grew 11.5%. Gross profit increased 14.3% to $157.5 million, while net income reached $33.2 million and diluted earnings per share were $1.31.
Enterprise Solutions generated revenue of $369.6 million and gross profit of $55.2 million, with a gross margin of 14.9%. Business Solutions recorded record revenue of $343.9 million and record gross profit of $79.1 million, despite its margin declining to 23.0%. Public Sector Solutions reported revenue of $140.5 million and a gross margin that improved by 130 basis points to 15.5%.
The company focuses on the infrastructure required to implement artificial intelligence, including computing, storage, networking, security, cloud computing, and services. The TSX organization, supported by the Helix Center for Applied AI and Robotics, provides services for assessing, designing, deploying, securing, and managing technology environments. In the second quarter of fiscal year 2026, management linked the record backlog in Enterprise Solutions to customer demand for modernizing AI-ready infrastructure.
Management said on July 29, 2026, that revenue in the third quarter of fiscal year 2026 could decline slightly from the second quarter, while expecting year-over-year growth in the high-single-digit percentage range. This reflects the seasonality of the Microsoft business, the historical tendency of the second quarter to slightly outperform the third quarter, and the presence of purchases pulled forward into the second quarter. Conversely, management aims to outperform the U.S. information technology market by 200 basis points during fiscal year 2026, supported by the elevated backlog and continued demand through the third quarter.
The company ended the second quarter of fiscal year 2026 with liquidity of $340.7 million in cash and cash equivalents and short-term investments. Operations used $49.5 million during the first half of fiscal year 2026, with inventory increasing by $61.5 million and accounts receivable increasing by $80.6 million to support growth and billing timing. In addition, $81.2 million remained available for share repurchases, and the board of directors declared a dividend of $0.27 per share payable on August 28, 2026.
Part of the strength in the second quarter of fiscal year 2026 may have resulted from customers pulling purchases forward ahead of price increases, and management estimated this impact at a mid-single-digit percentage or slightly lower. There are also supply constraints and variation in purchasing cycles, with revenue expected to decline slightly on a sequential basis in the third quarter of fiscal year 2026. Additional risks include a 50-basis-point decline in the Business Solutions margin, the use of $49.5 million in operating cash during the first half, and net insider sales of $14.2 million during the three months through August 18, 2026, although those sales may have been prearranged.
