What is the market's earnings forecast for PC Connection next quarter?

What is the revenue and EPS growth rate for PC Connection year over year?

What is PC Connection's latest dividend and current dividend yield?

Did PC Connection beat or miss consensus estimates last quarter?

What does PC Connection do and what are its main business segments?

What were the key takeaways from PC Connection’s earnings call?

What is PC Connection's gross profit margin?

What factors drove the changes in PC Connection's revenue and profit?

- **Revenue resilience**: Gross billings up 2.9% to $1.06 billion, with Business and Enterprise Solutions offsetting Public Sector decline.
- **Profitability boost**: Gross margin expanded 100bps to 19.3%, operating income up 4.2% to $23.6 million.
- **Cost efficiency**: $7-8 million annual savings from restructuring, operating margin target 3.7-3.9%.
- **Shareholder returns**: Dividend hike (+33%) and $76.1 million in share buybacks in 2025.
- **Growth outlook**: 2026 target to outpace U.S. IT market by 200bps, driven by AI, cloud, and cybersecurity.

**【CEO Summary Section】**
- **Record gross profit in key segments**: Business Solutions and Enterprise Solutions achieved 11.4% and 7.1% gross profit growth, respectively, driven by software, cloud, and endpoint device demand. Public Sector declined 36.8% due to a non-repeating project.
- **Gross billings introduced**: Q4 gross billings rose 2.9% to $1.06 billion, reflecting customer demand despite Public Sector challenges.
- **Financial highlights**: Gross profit up 4.5% to $135.6 million, gross margin expanded 100bps to 19.3%. Net sales down 0.8% to $702.9 million. Operating income increased 4.2% to $23.6 million, with adjusted EPS up 16.7% to $0.91.
- **Restructuring**: $3.1 million severance charges in Q4, with additional $5.9-6.2 million charges in Q1 2026, yielding $7-8 million annual savings.
- **2026 outlook**: Target to outgrow U.S. IT market by 200bps, fueled by AI, cloud, and cybersecurity solutions.

**【CFO Financial Commentary】**
- **Expense management**: SG&A up 1.7% due to variable compensation, headcount down 2%. Operating income margin improved to 3.4%, excluding charges, 3.8%.
- **Cash flow and returns**: Operating cash flow $65.4 million. Share repurchases ($76.1 million in 2025) and dividend increases ($0.20 per share, +33%) returned $91.4 million to shareholders.
- **Liquidity**: $406.7 million in cash, supporting strategic investments and shareholder returns.

**【Q&A Key Highlights】**
- **Market growth expectations**: CEO projects U.S. IT market at 4%, targeting 6% growth. Q4 saw 38% of sales in December due to budget flush and price anticipation.
- **Memory constraints**: Q4 experienced price increases, with Q1 expecting further spikes, prompting customer order acceleration.
- **Operating margins**: CFO anticipates 3.7-3.9% operating margin by year-end, driven by restructuring savings and efficiency gains.

PC Connection, Inc. (CNXN) Q4 2025 Earnings Call Transcript

- **Revenue resilience**: Gross profit up 7.8% despite Public Sector headwinds.
- **Liquidity strong**: $399 million cash, supporting strategic investments.
- **2026 growth drivers**: Enterprise Solutions and AI infrastructure projects.
- **Public Sector recovery**: Backlog at record levels, awaiting funding resolution.


**【CEO Summary Section】**
- Q3 2025 revenue of $709.1 million, down 2.2% YoY, driven by Public Sector challenges.
- Gross profit up 7.8% to $138.6 million, with Business Solutions segment gross margin at 26.5%.
- Backlog at record levels, with Enterprise Solutions leading the recovery.

**【CFO Financial Commentary】**
- Operating cash flow $38 million, with $399.2 million in liquidity.
- Share repurchases of 1 million shares YTD at $63.17 average price.
- Effective tax rate 27.1%, impacting net income of $24.7 million.

**【Q&A Highlights】**
- Public Sector delays due to federal funding uncertainty.
- 2026 outlook for mid-single digit growth in Enterprise Solutions.
- Backlog visibility into Q4 with $132.5 million in Public Sector orders.


PC Connection, Inc. (CNXN) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 3.2% YoY to $759.7 million, driven by AI PCs and Windows 11 refresh.
- **Margin Challenges**: Gross margin down 40bps to 18.1%, operating income flat.
- **Segment Strength**: Enterprise Solutions up 9.1%, Business Solutions +5.4%.
- **Backlog and Pipeline**: Record backlog, strong Q2 pipeline for second-half growth.
- **Cash Flow Management**: $346.1 million in cash, cautious on inventory rollouts.
- **Strategic Investments**: AI, sales productivity tools, and platform enhancements.

**【CEO Summary Section】**
- Q2 2025 net sales of $759.7 million, up 3.2% YoY, marking the 5th consecutive quarter of revenue growth.
- Mobility and desktop sales rose 6% YoY, driven by Windows 11 refresh and AI PCs.
- Advanced tech and integrated solutions grew 3%, while gross profit reached a record $137.8 million despite a 40bps margin decline to 18.1% due to licensing program changes.
- Operating income remained flat at $30.9 million, with net income down 5.2% to $24.8 million.
- Segment highlights: Business Solutions +5.4%, Public Sector -11.9%, Enterprise +9.1%.
- Backlog at highest level in 2 years, with strong pipeline optimism for the second half.

**【CFO Financial Commentary】**
- SG&A increased 1.6% YoY but improved to 14.1% of sales, down 20bps.
- Operating income margin dipped to 4.1%, with a 27.3% tax rate and $0.97 EPS, down $0.02 YoY.
- EBITDA declined 2% YoY to $122.5 million.
- $15.5 million in Q2 share repurchases and $0.15 dividend declared.
- Cash flow used $26.1 million in operations due to inventory and AR growth, ending with $346.1 million in cash.

**【Q&A Key Highlights】**
- **Pipeline and Demand**: Strong July trends, with 75% of inventory customer-specific for rollouts.
- **Tariffs and Pricing**: Anticipated price increases but reduced impact from supplier diversification.
- **Gross Margins**: Expected stability near current levels, 10-15bps variance.
- **Vertical Markets**: Optimism in retail and manufacturing; healthcare lag due to past rollouts.
- **Investments**: Focused on sales productivity, platforms, and AI initiatives for long-term growth.

PC Connection, Inc. (CNXN) Q2 2025 Earnings Call Transcript

- **Q1 Growth Drivers**: 10.9% revenue rise fueled by 21% notebook/desktop sales and 5.4% enterprise solutions expansion.\n- **AI Momentum**: 40% of endpoints AI-enabled, with customers accelerating purchases amid tariff uncertainty.\n- **Cost Efficiency**: Operating income +7.9% YoY, SG&A as % of sales down 88bps.\n- **Share Buybacks**: $44.8M repurchased in Q1, $50M added to program.\n- **Backlog Strength**: Highest in 2 years, targeting 200bps IT market outperformance.\n- **Q2 Outlook**: Mid-single-digit revenue growth expected, SG&A growth constrained.

**【CEO Opening Remarks】**
- Q1 2025 consolidated net sales: $701 million (+10.9% YoY), driven by notebook/desktop refresh (+21% YoY) and enterprise solutions growth (+5.4% YoY).\n- Gross profit: $127.3 million (+7.9% YoY), with gross margin 18.2% (down 50bps YoY due to product mix).\n- Operating income: $14.5 million (+7.9% YoY), excluding severance, $17.5 million (+29.6% YoY).\n- Notable wins: Intel AIPC Partner of the Year, HP US Commercial Supplies Partner of the Year.\n- AI-enabled endpoints: 40% of notebook/desktop sales, with customers accelerating purchases to hedge against tariffs.\n- Backlog at highest level in 2 years, confident in 200bps outperformance vs US IT market.\n\n**【CFO Financial Highlights】**
- SG&A: $111.3 million (+5% YoY), but 88bps improvement in SG&A as % of sales (15.7% vs 16.6%).\n- Cash flow: -$52.4 million (operations), $104.7 million (investing), $48.2 million (financing).\n- Share buybacks: 697,000 shares ($44.8 million) in Q1, with $50 million added to repurchase program.\n- Dividends: $0.15/share quarterly, $3.9 million paid in Q1.\n- Cash balance: $340.3 million.\n\n**【Q&A Key Takeaways】**
- **Customer Behavior**: 30% of customers accelerating purchases vs 20% delaying, with federal gov (+$40M) and healthcare/finance verticals leading growth.\n- **Q1 Progression**: 34% of revenue in March, up from 28% last year, reflecting late-quarter tariff-driven buying.\n- **Q2 Outlook**: Mid-single-digit revenue growth expected, with SG&A growth < revenue growth.\n- **Acquisition Strategy**: $50M new buyback authorization, but still pursuing tuck-in acquisitions to expand solutions capability.

PC Connection (CNXN)-30 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Mixed**: Full year revenue down 1.7% YoY, but Q4 up 1.8% YoY. Gross margin hit 18.6% (record) vs. 18.3% Q4, driven by customer mix and software sales.
- **Segment Strengths**: Public Sector revenue surged 42.9% YoY, offsetting lower margins. Enterprise Solutions struggled with advanced tech delays.
- **Investment Payoff**: 5.2% YoY SG&A growth reflects investments in sales and AI capabilities, positioning for 2025 IT recovery.
- **Dividend Boost**: 50% dividend increase signals confidence in cash flow, with 15-20% payout target.
- **2025 Outlook**: Target 200 bps above US IT market growth, driven by device refreshes and AI-driven data center projects.

**【CEO Summary Section】**
- **Full Year 2024 Performance**: Revenue of $2.8 billion (-1.7% YoY), gross profit $519.8 million (+1.6%), and net income $87.1 million (+4.6%). Gross margin reached a record 18.6% (+60 bps YoY). Q4 2024 revenue was $708.9 million (+1.8% YoY), but net income declined 12.9% to $20.7 million due to delayed IT spending.
- **Segment Highlights**: 
  - **Business Solutions**: Q4 revenue $262.4 million (-3.7% YoY), gross margin 23.9% (+70 bps YoY) driven by customer mix and software sales.
  - **Public Sector Solutions**: Q4 revenue $143.7 million (+42.9% YoY), but gross margin fell 150 bps to 15.4% due to low-margin projects.
  - **Enterprise Solutions**: Q4 revenue $302.7 million (-6.4% YoY), gross margin 14.9% (-50 bps YoY) from product mix shifts.
- **Market Trends**: IT spending recovery lagged, but notebook/desktop revenue grew 14% YoY. Advanced tech revenue underperformed, though pipeline opportunities increased.

**【CFO Financial Commentary】**
- **Q4 2024 Financials**: GAAP net income $20.7 million (-12.9% YoY), EPS $0.78 (-12.8% YoY). Adjusted EBITDA $118.9 million (-5% YoY). SG&A rose 5.2% YoY to $15.1% of sales, driven by sales and technical resource investments.
- **Cash Flow & Dividends**: Operating cash flow $173.9 million (FY24), with $4.9 million in Q4 share buybacks. Dividend increased 50% to $0.15/share, targeting 15-20% payout ratio. FY24 cash balance $442.6 million.
- **Investing Activities**: $115.3 million net cash used, including $358.3 million in investment purchases and $250.6 million in maturities.

**【Q&A Key Highlights】**
- **Sales Progression**: Q4 2024 saw uneven performance—October strong, November weak, December flat. Q1 2025 expected flat to low-single-digit growth.
- **Vertical Opportunities**: Retail, healthcare (GPOs), and manufacturing show promise. Public Sector dependent on large federal contracts.
- **SG&A Growth**: 3-4% YoY in 2025 due to variable compensation and one-time Q4 costs ($2.5-3 million non-recurring). 
- **Tariffs Impact**: Suppliers diversifying manufacturing (e.g., Mexico, Vietnam), but uncertainty remains. Company working with customers to optimize supply chains.

Actual											0.56	0.32	0.64	0.62	0.39	0.66	0.76	0.85	0.83	0.96	0.88	0.71	0.56	0.8	0.97	0.9	0.5	1	0.97	0.78	0.6	0.97	0.97	0.91
Forecast											0.53	0.665	0.655	0.62	0.43	0.65	0.705	0.71	0.605	0.755	0.815	0.735	0.62	0.6	0.81	0.875	0.635	0.83	1.005	0.9	0.415	0.905	1.005	0.86
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+5.66%	-51.88%	-2.29%	0.00%	-9.30%	+1.54%	+7.80%	+19.72%	+37.19%	+27.15%	+7.98%	-3.40%	-9.68%	+33.33%	+19.75%	+2.86%	-21.26%	+20.48%	-3.48%	-13.33%	+44.58%	+7.18%	-3.48%	+5.81%

Actual	--	--	--	--	--	--	--	--	--	--	711.85M	550.00M	652.75M	675.69M	636.89M	704.16M	751.37M	800.17M	788.34M	828.51M	775.69M	732.45M	727.54M	733.55M	693.09M	696.47M	632.02M	736.48M	724.72M	708.90M	701.05M	759.69M	709.07M	702.94M
Forecast	--	--	--	--	--	--	--	--	--	--	638.37M	653.04M	655.01M	651.27M	624.13M	688.12M	721.38M	747.92M	709.28M	778.37M	803.02M	751.12M	729.32M	763.72M	738.41M	673.59M	694.19M	703.50M	726.97M	716.23M	646.05M	764.08M	743.68M	735.49M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+11.51%	-15.78%	-0.34%	+3.75%	+2.04%	+2.33%	+4.16%	+6.99%	+11.15%	+6.44%	-3.40%	-2.49%	-0.24%	-3.95%	-6.14%	+3.40%	-8.95%	+4.69%	-0.31%	-1.02%	+8.51%	-0.57%	-4.65%	-4.43%

CNXN

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CNXN Q4 2025 Earnings

Earnings Call

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CNXN

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CNXN Q4 2025 Earnings

Earnings Call

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