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PC Connection Inc
XMUN:PCC

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PC Connection Inc
XMUN:PCC
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Price: 75 EUR 0.67% Market Closed
Market Cap: €1.3B

PC Connection Inc
Investor Relations

PC Connection Inc. is an information technology reseller that sells computers, software, networking gear, and related services to businesses, government agencies, schools, and individual customers. It does not make the hardware itself; instead, it sources products from major tech vendors and packages them into complete purchases for customers that need help choosing, configuring, and supporting their IT equipment. The company makes money mainly by reselling third-party technology products and by charging for services such as system configuration, deployment, and support. A large part of its value comes from acting as an intermediary that can simplify buying decisions for customers who need many different brands and product types in one place. What makes PC Connection’s business different is that it sits in the middle of the IT supply chain as a distributor and service partner, not a software maker or hardware manufacturer. Its customers rely on it to save time, reduce purchasing complexity, and get the right mix of equipment and support for their workplaces and networks.

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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Jul 29, 2026
AI Summary
Q2 2026

Record quarter: Connection posted record net sales, gross billings, and gross profit, with Q2 net sales of $854 million, up 12.4% year over year.

AI demand: Management said customers are moving beyond AI testing and into broader adoption, driving demand for modern infrastructure, security, cloud, software, and services.

Margins improved: Gross margin reached 18.4% and operating margin rose to a record 5%, helped by mix, pricing, and operating leverage.

Some pull-ins: Management said some customers accelerated purchases ahead of price increases and supply issues, but backlog remained elevated across the business.

Near-term outlook: Management expects Q3 revenue to be down slightly sequentially, with year-over-year growth likely in the high single digits, but said July started strongly.

Capital returns: The company paid a $0.20 quarterly dividend, declared another $0.20 dividend, and ended the quarter with $81.2 million remaining under its buyback program.

Key Financials
Net sales
$854 million
Gross billings
$1.2 billion
Gross profit
$157.5 million
Gross margin
18.4%
Operating income
$43 million
Operating margin
5%
Net income
$33.2 million
Diluted earnings per share
$1.31
Adjusted EBITDA
$144.5 million
SG&A
$114.5 million
SG&A as a percentage of net sales
13.4%
Cash, cash equivalents and short-term investments
$340.7 million
Remaining stock repurchase authorization
$81.2 million
Quarterly dividend
$0.20 per share
Business Solutions net sales
$343.9 million
Business Solutions gross profit
$79.1 million
Business Solutions gross margin
23%
Business Solutions gross billings
$496.1 million
Public Sector Solutions net sales
$140.5 million
Public Sector Solutions gross billings
$197.1 million
Public Sector Solutions gross margin
16.5%
Enterprise Solutions net sales
$369.6 million
Enterprise Solutions gross profit
$55.2 million
Enterprise Solutions gross billings
$477 million
Enterprise Solutions gross margin
14.9%
Cash used from operations
$49.5 million
Inventory increase
$61.5 million
Accounts receivable increase
$80.6 million
Accounts payable increase
$39.3 million
Cash used in investing activities
$6.4 million
New investment purchases
$105.7 million
Purchases of property, plant and equipment
$3.9 million
Investment maturities
$103.2 million
Cash used in financing activities
$13.6 million
Share repurchases
$2.5 million
Dividend payments
$10.1 million
Earnings Call Recording
Other Earnings Calls

Management

Ms. Patricia Gallup
Co-Founder, Chair of the Board & Chief Administrative Officer
No Bio Available
Mr. Timothy J. McGrath
President & CEO
No Bio Available
Mr. Jay E. Bothwick J.D.
Independent Vice Chairman & Secretary
No Bio Available
Mr. Thomas C. Baker
Senior VP, CFO & Treasurer
No Bio Available
Mr. Brian Hicks
Senior Vice President of Product Management & Operations
No Bio Available
Scott Sova
Chief Information Officer
No Bio Available
Kyle Reeb
Vice President of Legal Services & Administration
No Bio Available
Ms. Joan Evans
Senior Vice President of Human Resources
No Bio Available
Mr. Larry S. Kirsch
President of Public Sector Solutions Group
No Bio Available
Mr. Jamal Khan
Chief Growth & Innovation Officer
No Bio Available

Contacts

Address
NEW HAMPSHIRE
Merrimack
Route 101A, 730 Milford Rd
Contacts
+16036832000.0
www.connection.com
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