PC Connection, Inc. (CNXN) Stock Price & How to Invest

Connection, Inc. (Nasdaq: CNXN) is a value-added reseller and IT solutions provider that sells hardware, software, and services to businesses, government, healthcare, and education customers. It operates through three segments (Business Solutions for small and midsized companies, Enterprise Solutions for large accounts, and Public Sector Solutions for government and education) and layers on managed services, professional services, configuration, cybersecurity, cloud, and lifecycle offerings. With roughly $3.0 billion in trailing revenue, about 2,500 employees, and a global procurement network reaching 174 countries, it is a distribution and integration partner rather than a manufacturer.

The investment picture is that of a mature, competitive distribution business trying to shift toward higher-margin services and solutions. Revenue growth has historically been low single digits and margins are thin (gross margin near 19% and operating margin near 5% on a trailing basis), which is typical for the reseller model, but the company is consistently profitable, carries little debt, holds meaningful net cash, and returns capital through a dividend and share buybacks. The founders Patricia Gallup and David Hall retain a controlling stake, which brings stability but also limits outside influence. 2026 has been a stronger year than usual. Q2 2026 revenue was about $854 million, up roughly 12% year over year, and diluted EPS of $1.31 beat the $1.04 consensus after a Q1 beat ($0.77 vs $0.62). On October 14 the company named Matt Zafirovski President and Chief Operating Officer, and insiders including Chairman Patricia Gallup sold shares in September and October. The result is a name that tends to trade on operating leverage, product mix (endpoint devices, data center, AI-related hardware), and the direction of corporate and public-sector IT budgets.

Connection is a thin-margin reseller in a crowded field, so pricing pressure and mix shifts can swing profitability quickly. It competes against much larger CDW and Insight Enterprises plus privately held SHI, which have scale advantages in vendor terms and services. Revenue is closely tied to corporate and public-sector IT budgets, which can stall in a slowdown, and the business is exposed to supply-chain, tariff, and component-cost swings. Trailing free cash flow was only about $12 million as working capital grew with sales, so cash generation lags reported profit for now. After a roughly 59% gain in 2026 the stock trades near 24 times trailing earnings, above the single analyst target of about $83, which leaves less room for a soft quarter. A leadership change (a new President and COO in October 2026) adds execution risk. The founding family's voting control limits outside shareholder influence, insiders have been selling, and the stock's low trading liquidity can amplify price moves.

We give no verdict on PC Connection, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Endpoint refresh and AI-driven hardware demand. Enterprise Solutions net sales rose about 16% year over year in Q1 2026 on strong demand for endpoint devices, and total revenue growth accelerated to about 12% in Q2, and management has pointed to AI-related infrastructure and PC refresh cycles as tailwinds.

The case against. Connection is a thin-margin reseller in a crowded field, so pricing pressure and mix shifts can swing profitability quickly.

Read the full bull and bear case on CNXN, including what would have to change to break either one. Walnut is not an investment adviser.

No. PC Connection, Inc. (CNXN) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see PC Connection, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$2.99B
• Revenue growth (Q2 2026, YoY): ~+12%
• Net income (TTM): ~$96M (margin ~3.2%)
• Diluted EPS (Q2 2026): $1.31 vs $1.04 est.
• P/E (trailing / forward): ~23.9 / ~20.2
• Market cap: ~$2.3B
• Dividend: $0.20/quarter (~0.9% yield)

At about $90, Connection trades near 24 times trailing and 20 times forward earnings, a big step up from the modest multiple it carried for years, after two straight quarters of beats and revenue growth that reached about 12% in Q2 2026. The Q3 report on October 28 carries consensus near $1.04 of EPS on about $772 million of revenue. The balance sheet holds about $341 million of cash and almost no debt, supporting the dividend and buybacks.

Other names that sit close to CNXN: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get CNXN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so CNXN sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where CNXN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Connection is a conservatively run, cash-generative IT reseller whose story is margin mix and steady capital returns, not rapid growth. A strong Q2 2026 and a new President and COO have lifted expectations into the October 28 report.

Whether CNXN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is CNXN a buy or a sell?, and where the stock could go from here in the CNXN stock forecast.

For income investors, whether CNXN pays a dividend and how the payout looks is covered in does CNXN pay a dividend? And to weigh CNXN against a peer, read the full side-by-side comparisons: CNXN vs CDW and CNXN vs NSIT.