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Dec 31, 2025
PC Connection Q4 2025 Earnings Report
Connection (CNXN) reported its fourth quarter and full year 2025 results, with net sales decreasing slightly year-over-year in Q4 but increasing for the full year, alongside growth in gross profit and adjusted diluted EPS.
Key Takeaways
Connection (CNXN) announced its fourth quarter and full year 2025 financial results. For Q4 2025, net sales were $702.9 million, a slight decrease of 0.8% year-over-year, while gross profit increased by 4.5% to $135.6 million. Diluted EPS was $0.82, up from $0.78 in Q4 2024, and adjusted diluted EPS reached $0.91. For the full year 2025, net sales grew by 2.5% to $2.9 billion, and gross profit increased by 3.8% to $539.3 million. The company also declared a quarterly dividend of $0.20 per share and approved a $50.0 million increase to its share repurchase program.
Net sales for Q4 2025 decreased by 0.8% year-over-year to $702.9 million, while full-year net sales increased by 2.5% to $2.9 billion.
Gross profit for Q4 2025 rose by 4.5% to $135.6 million, with gross margin expanding by 100 basis points to 19.3%.
Diluted EPS for Q4 2025 was $0.82, an increase from $0.78 in the prior year, and Adjusted Diluted EPS was $0.91.
The Board of Directors declared a quarterly dividend of $0.20 per share and increased the share repurchase program by $50.0 million.
Revenue by Segment
Forward Guidance
Connection's forward-looking statements indicate a focus on profitable growth and shareholder value, driven by strong execution in an AI-first IT environment, but acknowledge potential risks from macroeconomic factors and competition.
Positive Outlook
- Strong execution in Enterprise and Business Solutions segments, leading to record gross profit.
- Customers modernizing for an AI-first IT environment, suggesting future demand.
- Confidence in the team and strategy to drive profitable growth.
- Commitment to enhancing long-term shareholder value.
- Increased share repurchase program, indicating confidence in future performance and commitment to returning capital to shareholders.
Challenges Ahead
- Macroeconomic factors, including disruptions in capital markets, changes in trade policy, and economic slowdowns, could impact investment levels.
- Substantial competition could reduce market share.
- Significant price competition could reduce profit margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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