At a glance
PC Connection Inc is worth $2.18B, about 27 times its fiscal 2025 earnings. Revenue grew 2.5% to $2.87B in fiscal 2025, with 2.9% kept as profit; over 5 years it has grown 2.1% a year. It pays a 0.87% dividend yield, and returned $163.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +40.1% over the past year with dividends reinvested and +15.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 26.9% in the 2020 crash (S&P 500: 33.7%) and 21.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 5 months after the lows.
The business in plain English
PC Connection, which does business under the Connection brand, is an IT reseller and services provider founded in 1982. It sources computers, software and networking gear from more than 1,600 suppliers, including Apple, Cisco, Dell, HP, Lenovo and Microsoft, and resells them to companies, schools and government agencies. It lists over 460,000 products and, as of December 31, 2025, employed 679 sales representatives. Its GlobalServe service handles purchasing for multinational customers in over 150 countries.
Most revenue comes from hardware. Of $2.87 billion in fiscal 2025 sales (the year ended December 31, 2025), notebooks and mobile devices made up 34.6%, desktops 12.2% and software 11.2%. Margins are thin. Gross margin, the share of sales left after paying for the goods, was 18.8%. Operating margin, what remains after running costs too, was 3.5%. To win more of each customer's IT budget, it adds services such as product configuration, managed services (ongoing IT support for a fee) and AI infrastructure design.
It reports three segments. Enterprise Solutions, serving large companies, brought in $1.28 billion, or 44.6% of fiscal 2025 sales. Business Solutions, serving small and medium-sized businesses, added $1.08 billion, or 37.7%. Public Sector Solutions, serving federal, state and local governments and schools, accounted for $508 million, or 17.7%.
Price history
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CNXN +40.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Notebooks/Mobility | $993.3M | 34.6% |
| Desktops | $351.8M | 12.2% |
| Software | $321.1M | 11.2% |
| Accessories | $319.1M | 11.1% |
| Displays and Sound | $250.4M | 8.7% |
| Servers/Storage | $220.4M | 7.7% |
| Other Hardware/Services | $214.6M | 7.5% |
| Net/Com Products | $202.0M | 7% |
By business segment
| Enterprise Solutions | $1.28B | 44.6% |
| Business Solutions | $1.08B | 37.7% |
| Public Sector Solutions | $508.5M | 17.7% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $874.3M, up 23.3% from a year earlier, and net income was $31.5M (+27.2%).
- For fiscal 2025, revenue was $2.87B (+2.5% year over year; +2.1% a year from FY2020 to FY2025) with a 2.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +2.1% watch |
|---|---|
| Operating margin | 3.5% weak |
| Free cash flow margin | 2% watch |
| Return on equity (FY2025) | 9.2% watch |
| Return on assets (FY2025) | 6.2% watch |
| Cash and investments | $343.3M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.59B | $55.8M | — |
| FY2021 | $2.89B | $69.9M | — |
| FY2022 | $3.12B | $89.2M | — |
| FY2023 | $2.85B | $83.3M | $188.4M |
| FY2024 | $2.80B | $87.1M | $166.3M |
| FY2025 | $2.87B | $83.7M | $58.0M |
Valuation snapshot
| Market value | $2.18B |
|---|---|
| P/E ratio | 26.5 |
| Dividend yield | 0.87% |
Rank among 1514 US companies
Market value at each year end
PC Connection’s market value went from $746.1M at the end of 2016 to $2.18B on Oct 28, 2026, about 2.9 times as much; since the end of 2025 it is up 50%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.18B | +49.8% |
| 2025 | $1.46B | -19.9% |
| 2024 | $1.82B | +3.1% |
| 2023 | $1.77B | +43.2% |
| 2022 | $1.23B | +9.1% |
| 2021 | $1.13B | -8.7% |
| 2020 | $1.24B | -5.3% |
| 2019 | $1.31B | +64.5% |
| 2018 | $794.7M | +13.1% |
| 2017 | $702.8M | -5.8% |
| 2016 | $746.1M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CNXN price data to Oct 28, 2026 | +51.1% | +40.1% | +19.1% | +15.7% | +15.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +51.1% |
| 2025 | -15.8% |
| 2024 | +3.7% |
| 2023 | +44.3% |
| 2022 | +9.4% |
| 2021 | -6.2% |
| 2020 | -4.8% |
| 2019 | +68.1% |
| 2018 | +14.7% |
| 2017 | -5.5% |
| 2016 | +25.6% |
| 2015 | -6.1% |
| 2014 | +0.5% |
| 2013 | +119.9% |
| 2012 | +7.4% |
| 2011 | +29.8% |
| 2010 | +31.3% |
| 2009 | +31.8% |
| 2008 | -54.9% |
| 2007 | -23.5% |
| 2006 | +175.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 77.9% over that stretch · deepest drop along the way 81.6%, back to its old high 47.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 18.4% over that stretch · deepest drop along the way 26.9%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 4.5% over that stretch · deepest drop along the way 21.1%, back to its old high 4.6 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 53 sales ($18.0M), 44 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 3, 2026 | Timothy J Mcgrath President & CEO | sell | $1.9M |
| Jul 31, 2026 | Thomas C Baker Sr. VP, CFO & Treasurer | sell | $1.6M |
| Aug 3, 2026 | Timothy J Mcgrath President & CEO | sell | $1.1M |
| Aug 4, 2026 | Timothy J Mcgrath President & CEO | sell | $1.1M |
| Oct 20, 2026 | Patricia Gallup Chairman & Chief Admin Officer, Director, 10% owner | sell (plan) | $686K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 7.1% | Mar 31, 2025 |
| Dimensional Fund Advisors LP | 6.1% | Jun 30, 2025 |
ETFs with the most weight in CNXN
| DSMC Distillate Small/Mid Cash Flow ETF | 0.52% |
| AFSM First Trust Active Factor Small Cap ETF | 0.41% |
| CSA VictoryShares US Small Cap Volatility Wtd ETF | 0.24% |
| TPSC Timothy Plan US Small Cap Core ETF | 0.23% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 0.22% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.21% |
| CALF Pacer US Small Cap Cash Cows ETF | 0.21% |
| DXUV Dimensional US Vector Equity ETF | 0.18% |
What could go wrong
- Price competition squeezes already thin margins. CDW and Insight Enterprises lead the market, and suppliers such as Dell, HP and Apple also market directly to end users. With an operating margin of 3.5% in fiscal 2025, even small price cuts hurt.
- A few vendors supply most products. PC Connection gets most of what it resells from a limited number of vendors. The 10-K warns that losing any one of them could seriously hurt the business.
- Cloud services could bypass the reseller. As customers move servers, storage and software to the cloud and to subscription services, they may purchase fewer physical products. That could erode the traditional reselling model behind most of its sales.
- Vendor incentives and referral fees could shrink. Suppliers offer incentive programs, including advertising support, and partners pay referral fees. Either could be cut back. Because margins are slim, smaller payments would quickly show up in profit.
- Controlled by one principal stockholder. The 10-K says one principal stockholder controls the company. That holder can largely decide board elections and major decisions, which leaves outside shareholders little influence.
- IT budgets shrink when the economy weakens. Businesses and governments may delay or skip IT purchases in hard times. Sales already vary widely: revenue fell from $3.12 billion in fiscal 2022 to $2.80 billion in fiscal 2024.
Recent events
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
PC Connection pays a small dividend. The yield was 0.87% as of October 28, 2026, which provides little income. Regular dividends per share rose from $0.32 in fiscal 2020 to about $0.60 in fiscal 2025, but raises have run only two straight years. The $1.00 for 2021 included what looks like a special, one-time payment. Fiscal 2025 dividends used 18.3% of earnings and 26.4% of free cash flow, the cash left after running and investing in the business. Share repurchases of $94 million over fiscal 2021 through 2025 topped $69 million in dividends.
The stock has fallen hard in downturns. It dropped 81.6% in the 2008 financial crisis and took about 47 months from its low to recover. In the 2020 COVID crash it fell 26.9% but recovered in under two months. In the 2022 market slump it fell 21.1% from its peak, yet rose 4.5% over the market's peak-to-trough stretch. Single stocks carry more risk than diversified funds.
Questions investors ask
How does PC Connection make money?
Mostly by reselling technology at a markup. PC Connection purchases laptops, desktops, software, servers and networking gear from more than 1,600 suppliers. It resells them to businesses, schools and government agencies, along with services such as setup, managed IT and AI infrastructure design. In fiscal 2025, notebooks and mobile devices made up 34.6% of its $2.87 billion in sales. Margins are thin: it kept 18.8% of sales after the cost of goods and 3.5% after operating costs.
Does PC Connection pay a dividend?
Yes, but the payout is small. The yield was 0.87% as of October 28, 2026. Regular dividends per share rose from $0.32 in fiscal 2020 to about $0.60 in fiscal 2025. The $1.00 paid for 2021 included what looks like a special dividend. Fiscal 2025 dividends used 18.3% of earnings. We found no borrowings in its financial filings, and it held $343 million in cash and investments as of September 30, 2026.
Who are PC Connection's competitors?
The biggest are CDW and Insight Enterprises, which PC Connection's 10-K calls the leaders among national IT solutions providers. Some of its own suppliers, including Apple, Dell, Lenovo and HP, also deal directly with end users. Online retailers such as Amazon are increasingly courting business customers. Local and regional value-added resellers (firms that bundle products with IT services) serve the largest part of the US market it operates in. In AI services, it names Palantir and Scale.ai as competitors.
How has PC Connection stock performed?
It has risen strongly over five and ten years, with sharp swings. As of October 28, 2026, the stock had returned 40.1% over one year, an average of 15.7% a year over five years and 15.4% a year over ten. It fell 15.83% in calendar 2025, and its worst drop from peak to low was 84.8%. In the quarter ended September 30, 2026, revenue rose 23.3% from a year earlier. The price-to-earnings (P/E) ratio, the share price divided by fiscal 2025 earnings per share, was 26.5 on that date.
Who owns PC Connection?
A single principal stockholder controls PC Connection, according to its 10-K. Patricia Gallup, the chairman and chief administrative officer, is a director and 10% owner. Among large investment firms, BlackRock reported owning 7.1% as of March 31, 2025, and Dimensional Fund Advisors 6.1% as of June 30, 2025. Insider filings reviewed for the year to October 29, 2026, showed 53 sales worth about $18 million and no purchases. Of those sales, 44 were made under prearranged trading plans.