CNXN: Record Q3 results and strong backlog; AI infrastructure demand sustains the growth outlook

PC Connection (CNXN) reported Q3 2026 earnings with record net sales of $874.3M, up 23.3% YoY, and gross profit of $161.9M, up 16.7%. Growth was driven by strong demand in digital workspace, modern infrastructure, and multicloud. Gross margin declined 110 basis points to 18.5%. The company declared a $0.20 per share dividend and has $81.2M remaining for stock repurchases.

PC Connection Inc (CNXN) reported Q3 2026 record net sales of $874.3M, up 23.3% YoY, with growth across all product categories. Gross profit grew 16.7% to $161.9M, but gross margin declined 110 bps to 18.5%. CEO Tim McGrath expects solid demand in 2027, driven by AI, but notes potential slight decline in endpoint device demand. The company declared a $0.20 per share dividend payable November 27, 2026.

PC Connection (CNXN) reported Q3 earnings of $1.24 per share, beating estimates by $0.20. Revenue was $874.31 million, exceeding expectations by 13%. The company has surpassed EPS estimates in the last four quarters. Shares are up 53.4% YTD. Future performance depends on management's commentary and earnings outlook.

Connection (CNXN) reported Q3 2026 revenue of $874.3M, up 23.3% YoY and 13% above estimates. Adjusted EPS of $1.24 beat estimates by 19.2%. Operating margin was 4.7%, while free cash flow margin declined to 0.9%. CEO McGrath attributed growth to strong customer demand and AI opportunities. Analysts expect flat revenue growth over the next 12 months.

PC Connection Inc. (CNXN) reported Q3 profit of $31.5M, or $1.24 per share, with revenue of $874.3M. The IT services provider's earnings are attributed to the company.

CNXN reported Q3 sales up 23.3% YoY to $874.3M, net income at $31.5M, but gross margin fell to 18.5%. Enterprise and Business Solutions drove nine-month growth, while working-capital outflows resulted in negative operating cash flow.