CNXN
PC Connection, Inc.
CNXN's fundamentals are mixed: earnings per share grew 25%, but free cash flow turned negative. At 21x earnings, it's trading in line with its usual 19x. Analysts expect strong earnings growth, though they disagree widely on how much.
CNXN Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Under pressure | |
| Strong |
CNXN's revenue, profitability and balance sheet are currently healthy, but its cash flow is under pressure.
CNXN PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 14x | $58.21 | -30% |
| Forward | 17x | $83.16 | — |
| Fair | 19x | $76.99 | -7.4% |
| Current | 21x | $83.16 | — |
| Expensive | 22x | $87.28 | +5% |
Historical ranges are pointers, not guarantees.
CNXN's PE is in its expensive range at 21x. If earnings grow as analysts expect, today's price would be 17x next year's earnings, in its cheap range.
CNXN Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Improving | |
| Limited | |
| Low |
Analysts expect earnings and revenue growth for CNXN, with profitability improving. However, they disagree widely on these estimates.
CNXN Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $4.76 | +18% |
| Q3 2026 | $4.05 | +25% |
| Q2 2026 | $3.78 | +15% |
| Q1 2026 | $3.44 | +4.2% |
| Q4 2025 | $3.27 | -0.6% |
| Q3 2025 | $3.23 | -5% |
| Q2 2025 | $3.28 | -2.1% |
| Q1 2025 | $3.30 | +6.1% |
| Q4 2024 | $3.29 | +4.4% |
CNXN earned $4.05 per share over the past year, up 25% from the year before.
CNXN Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $874.3M | +23% |
| Q2 2026 | $854M | +12% |
| Q1 2026 | $721.9M | +3% |
| Q4 2025 | $702.9M | -0.8% |
| Q3 2025 | $709.1M | -2.2% |
| Q2 2025 | $759.7M | +3.2% |
| Q1 2025 | $701M | +11% |
| Q4 2024 | $708.9M | +1.8% |
CNXN's revenue has picked up after two years of holding roughly level: $874M last quarter, up 23% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 4.7% | +0.4 points |
| Q2 2026 | 5% | +1 points |
| Q1 2026 | 2.8% | +0.7 points |
| Q4 2025 | 3.4% | +0.2 points |
| Q3 2025 | 4.3% | +0.1 points |
| Q2 2025 | 4.1% | -0.1 points |
| Q1 2025 | 2.1% | -0.1 points |
| Q4 2024 | 3.2% | -0.8 points |
CNXN's operating margin was 4.7% last quarter, about level with the same quarter a year ago, near the top of its range since 2019.
CNXN Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $7.6M | -88% |
| Q2 2026 | -$65.7M | -367% |
| Q1 2026 | $12.3M | +$66.4M |
| Q4 2025 | $25.2M | -0.1% |
| Q3 2025 | $62.3M | +22% |
| Q2 2025 | $24.6M | -33% |
| Q1 2025 | -$54.1M | -197% |
| Q4 2024 | $25.2M | +105% |
CNXN's free cash flow was −$21M over the past year, against $58M the year before.
CNXN Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.4% | +102K shares |
| 1 year | -0.2% | -48K shares |
| 3 years | -3.8% | -993K shares |
| 5 years | -3.5% | -927K shares |
| Available history | -4.1% | -1.1M shares |
CNXN has 25M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | $2.5M |
| Q4 2025 | $10.7M |
| Q3 2025 | $5.1M |
| Q2 2025 | $16.7M |
| Q1 2025 | $43.7M |
| Q4 2024 | $4.6M |
CNXN spent $13M buying back its own shares over the past year, down 81% from the year before.
CNXN Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2025 | -1.7x | Net Cash |
| Q2 2025 | -1.7x | Net Cash |
| Q1 2025 | -1.6x | Net Cash |
| Q4 2024 | -1.6x | Net Cash |
| Q3 2024 | -1.5x | Net Cash |
| Q2 2024 | -1.1x | Net Cash |
| Q1 2024 | -1.3x | Net Cash |
| Q4 2023 | -1.3x | Net Cash |
CNXN has more cash than debt.
CNXN Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 54.2 | Neutral |
| Stochastic | 33.1 | Neutral |
CNXN's weekly RSI is 54 (neutral) and its Stochastic is 33 (neutral).
CNXN PE vs Technology Sector
| Metric | CNXN | Sector median | Relative |
|---|---|---|---|
| PE | 21x | 28x | 26% below |
| PE % | 71 | 35 | 36 pts above |
CNXN is trading at 21x earnings, a 26% discount to the Technology sector's median of 28x.
CNXN Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $87.7 | 5.2% below |
| 20 week MA | $83.7 | 0.7% below |
| 50 week MA | $71.2 | 17% above |
| 100 week MA | $67.7 | 23% above |
| 200 week MA | $63.4 | 31% above |
CNXN has pulled back, but its long-term trend is still up: it's below its 8- and 20-week averages, but 31% above its 200-week average.
CNXN Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $51.0 | $44.3 | -13% |
| 2021 | $44.3 | $44.1 | -0.3% |
| 2022 | $44.1 | $47.7 | +8.1% |
| 2023 | $47.7 | $67.2 | +41% |
| 2024 | $67.2 | $69.5 | +3.4% |
| 2025 | $69.5 | $59.7 | -14% |
| 2026 YTD | $59.7 | $83.2 | +39% |
CNXN is up 39% so far in 2026, after finishing lower in three of the previous six years.