PC Connection Q2 adjusted EPS rises on higher sales

PC Connection

29/07/2026 21:22

Overview
IT solutions provider's Q2 net sales rose 12.4% yr/yr to $854 mln
Adjusted EPS for Q2 increased to $1.31 from $0.97 yr/yr
Company declared quarterly dividend of $0.20 per share

Outlook
Company did not provide specific guidance or outlook for the current quarter or full year

Result Drivers
NOTEBOOK AND DESKTOP SALES - Notebook/mobility and desktop sales increased 19% yr/yr, accounting for 51% of net sales in Q2
ENTERPRISE AND BUSINESS SOLUTIONS GROWTH - Net sales in the Enterprise Solutions segment rose 13.4% and in Business Solutions by 17.3% yr/yr, while Public Sector Solutions was flat
GROSS MARGIN IMPROVEMENT - Overall gross margin rose 30 basis points to 18.4% yr/yr

Company press release: ID:nBw8LcZYNa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$854 mln
$767.62 mln (2 Analysts)
Q2 Adjusted EPS
 
$1.31
$1.04 (2 Analysts)
Q2 EPS
 
$1.31
 
Q2 Net Income
 
$33.2 mln
 
Q2 Gross Margin
 
18.4%
 
Q2 Gross Profit
 
$157.5 mln
 

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the integrated hardware & software peer group is "buy."
Wall Street's median 12-month price target for PC Connection Inc is $76.00, about 8.5% below its July 28 closing price of $83.10
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
July 28 - Seagate Q4 adjusted EPS beats estimates on cloud demand
July 28 - Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump
July 29 - Cognizant lifts annual profit forecast on strong financial services growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)