PC Connection Reports 12.4% Revenue Growth to $854M in Q2 2026

PC Connection, Inc. reported a significant increase in financial performance for the second quarter and first half of 2026, with net sales reaching $854.0 million, a 12.4% increase from $759.7 million in the same period of 2025. For the six months ended June 30, 2026, net sales totaled $1.575 billion, up 7.9% from $1.461 billion year-over-year. The company's gross profit also rose, reaching $157.5 million for the second quarter, a 14.3% increase compared to $137.8 million in the prior year, while gross margin improved to 18.4% from 18.1%.

The company's operational metrics showed notable changes, with the Enterprise Solutions segment generating $369.6 million in sales, a 13.4% increase, and the Business Solutions segment achieving $343.9 million, up 17.3%. However, the Public Sector Solutions segment remained flat at $140.5 million. The increase in sales was attributed to higher demand for notebooks, software, displays, and accessories, although sales of servers and desktops declined. The company also reported a net income of $33.2 million for the second quarter, compared to $24.8 million in the previous year.

In terms of strategic developments, PC Connection has focused on enhancing its IT solutions and services, which are expected to drive higher margins. The company has invested in its Technology Solutions and Services Organization (TSSO) to provide comprehensive IT solutions, which include managed services and professional services. This strategic direction aims to meet the growing demand for integrated IT solutions among customers, thereby improving profitability.

Operationally, PC Connection's customer base and engagement metrics have shown positive trends, with an increase in accounts receivable and inventory levels reflecting higher sales activity. The company reported a cash and cash equivalents balance of $123.7 million and short-term investments of $217.0 million as of June 30, 2026. However, cash used in operating activities increased to $49.5 million, primarily due to changes in accounts receivable and inventory management. The company’s cash conversion cycle also increased to 49 days, indicating a need for improved efficiency in managing working capital.

Looking ahead, PC Connection remains optimistic about its growth trajectory, emphasizing the importance of its investments in IT infrastructure and service capabilities. The company anticipates that these investments will enhance operational efficiency and customer satisfaction, although it acknowledges potential challenges from macroeconomic conditions, including inflation and supply chain constraints. The board of directors has declared a quarterly cash dividend of $0.20 per share, reflecting the company's commitment to returning value to shareholders while pursuing growth initiatives.