Matthew Zafirovski named President & COO at PC Connection; Timothy J. McGrath relinquishes President title

PC Connection (CNXN) secured a NASA contract via its GovConnection subsidiary, boosting its access to federal IT programs. Shares rose 3.48% in a day and 18.48% over 90 days, with a 1-year return of 26.73%. The stock trades at a P/E of 20.9x, below industry and peer averages, but slightly above an estimated fair P/E of 20.6x. Analysts debate its valuation, with a DCF model suggesting significant undervaluation.

Business Solutions: Net sales increased 17.3% to a record $343.9 million, while gross billings grew 16.7% to $496.1 million. Gross margin was 23%, compared with 23.5% a year earlier, reflecting a higher mix of endpoint devices and changes in customer mix. Backlog reached its highest level in three years. Public Sector Solutions: Net sales were $140.5 million, consistent with the prior-year quarter, while gross billings increased 1.7% to $197.1 million.

Connection (NASDAQ:CNXN) reported Q2 CY2026 revenue of $854 million, above analysts’ $767.6 million estimate. Adjusted EPS was $1.31 versus $1.04 expected, and adjusted EBITDA was $48.4 million versus $34.86 million. Operating margin was 5%. Free cash flow was -$65.74 million, down from $24.64 million a year earlier.

PC CONNECTION INC (CNXN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ​ ​ ​ ​ ​ ​ ​ Investor Relations Contact: Thomas Baker, 603.683.2505 Senior Vice President, CFO, and Treasurer tom@connection.com ​ ​ ​ CONNECTION (CNXN) REPORTS SECOND QUARTER 2026 RESULTS ​ ​ ​ ​ ​ ​ ​ SECOND QUARTER SUMMARY : FIRST HALF OF 2026 SUMMARY : ​ ​ ● Net

PC Connection (CNXN) shares rose above their 200-day moving average on Friday, trading up to $70.01 and last at $69.59. The 200-day average is $60.77. On May 2, Wall Street Zen upgraded CNXN from hold to buy. The company reported Q1 EPS of $0.77 vs $0.62 consensus on revenue of $721.87M.

Comcast (CMCSA) trades at $21.83 with a 6.0% dividend yield. Q3 saw losses in broadband and video customers, but free cash flow covered dividends. CEO Brian Roberts highlighted progress on NBCUniversal and Sky separation. Dividend growth stalled in 2026. Peers Charter and Verizon show mixed results. Investors should monitor cash flow and customer losses.