PC Connection Expects US IT Market Growth Amid Backlog and Investments

PC Connection reported Q2 2025 net sales of $759.7 million, a 3.2% YoY increase, marking its fifth consecutive quarter of revenue growth. The company expects continued growth and outperformance of the US IT market by 200 bps, driven by a strong backlog and ongoing investments.

PC Connection (NASDAQ: CNXN), a leading information technology solutions provider, reported its second-quarter 2025 results, showcasing continued revenue growth and positive momentum in advanced technologies and endpoint devices [1]. The company's net sales reached $759.7 million, marking a 3.2% year-over-year (YoY) increase, which represents its fifth consecutive quarter of revenue growth [1].

Key financial highlights include:
- Gross profit increased to $137.8 million, up 0.9% YoY, despite a 40 basis points decrease in gross margin to 18.1% [1].
- Net income decreased by 5.2% to $24.8 million, with diluted earnings per share (EPS) at $0.97 compared to $0.99 YoY [1].
- Adjusted Diluted EPS was $0.97 for the quarter ended June 30, 2025, compared to $1.00 per share for the same period in 2024 [1].

Segment performance:
- The Business Solutions segment saw a 5.4% increase in net sales to $293.2 million, with gross profit rising by 3.8% to $68.8 million [1].
- The Public Sector Solutions segment experienced a 11.9% decrease in net sales to $140.5 million, with gross profit decreasing by 11.9% to $21.3 million [1].
- The Enterprise Solutions segment recorded a 9.1% increase in net sales to $326.0 million, with gross profit rising by 3.4% to $47.6 million [1].

The company's President and Chief Executive Officer, Timothy McGrath, stated, "Q2 2025 represents our fifth consecutive quarter of year-over-year net sales growth. Despite a dynamic economic environment, customers continued to invest in data center refresh initiatives and in the transition to Windows 11, which resulted in positive momentum in advanced technologies and endpoint devices. We remain committed to delivering outstanding value through integrated IT solutions and superior customer service" [1].

PC Connection also announced a quarterly dividend of $0.15 per share of the Company’s common stock, to be paid on August 29, 2025, to shareholders of record on August 12, 2025 [1].

The company expects continued growth and outperformance of the US IT market by 200 basis points, driven by a strong backlog and ongoing investments [1].

References:
[1] https://www.businesswire.com/news/home/20250730500485/en/Connection-CNXN-Reports-Second-Quarter-2025-Results