PC Connection Reports $17.2M Net Income and $721.9M Revenue in Q1 2026

PC Connection, Inc. reported a net income of $17.2 million for the first quarter of 2026, reflecting a 28.5% increase from $13.5 million in the same period last year. The company's revenue for the quarter reached $721.9 million, a 3.0% increase compared to $701.0 million in the first quarter of 2025. The growth in revenue was primarily driven by increased sales in various product categories, including notebooks/mobility, accessories, and displays and sound, which collectively contributed to an overall gross profit of $132.7 million, up 4.3% from $127.3 million a year earlier. The gross margin improved to 18.4%, compared to 18.2% in the prior year.

In terms of operational changes, PC Connection saw a notable increase in accounts receivable, which rose to $661.5 million from $648.0 million, indicating a growing customer base and higher sales volume. The company also reported a significant increase in inventory levels, which rose to $194.3 million from $143.6 million, reflecting strategic stockpiling in anticipation of future demand. The total current assets increased to $1.29 billion, up from $1.22 billion at the end of 2025, while total liabilities also rose to $503.3 million from $440.8 million, largely due to increased accounts payable.

The company undertook severance expenses of $3.1 million during the quarter, slightly higher than the $2.9 million recorded in the same period last year, as part of efforts to streamline operations and reduce costs. Selling, general, and administrative expenses decreased as a percentage of net sales to 15.2% from 15.7%, indicating improved operational efficiency. The company also repurchased $2.5 million worth of its common stock during the quarter, continuing its strategy to return value to shareholders.

Looking ahead, PC Connection remains optimistic about its growth trajectory, supported by its investments in IT solutions and infrastructure. The company anticipates that its focus on high-margin service offerings will continue to enhance profitability. However, it also acknowledges potential challenges, including macroeconomic factors such as inflation and supply chain constraints, which could impact future performance. The company expects to maintain sufficient liquidity through its cash reserves and short-term investments, which totaled $196.3 million and $215.2 million, respectively, as of March 31, 2026.